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Question

Q. Which of the following statements describes the Venture capital funds correctly?

A
These funds provide commercial support for the introduction and adaptation of new ideas.
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B
They provide financial support to investors involved in the securities market.
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C
These are the government-supported funds to support new businesses.
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D
None of the above statements is correct.
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Solution

The correct option is A These funds provide commercial support for the introduction and adaptation of new ideas.

Explanation:

Venture capital funds

  • Venture Capital Fund is made up of investments from wealthy individuals or companies who give their money to a VC firm to manage their investment portfolios for them and to invest in high-risk start-ups in exchange for equity.
  • The importance of venture capital funds is to give commercial support to new ideas and for the introduction and adaptation of new technologies.

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