Question

Venture capital contains

• A. High risk
• B. Venture risk
• C. Both (A) and (B)
• D. None of these

Hint:

Venture capital = High return but also high risk investment.

Answer 1

The Correct Option is C

Step 1: Meaning of venture capital.
Venture capital is financing provided to new, innovative, and high-potential businesses.
Step 2: Nature of risk.
Such projects involve uncertainty, hence:
- High risk due to untested markets and products.
- Venture risk because success is not guaranteed.
Step 3: Option analysis.
- (A) High risk: True but incomplete.
- (B) Venture risk: True but partial.
- (C) Both (A) and (B): Correct, as both apply to venture capital.
- (D) None of these: Wrong.
Step 4: Conclusion.
Venture capital always involves high and venture risk.