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Azita123 Azita123
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7 years ago
If you were a venture capitalist, which of the following start-up businesses would you be most likely tofund?A) a Domino's Pizza franchiseeB) a modern art gallery within a shopping center C) a producer of unique iPhone applicationsD) a private accountant's office E) a high-end coffee bar
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wrote...
5 years ago
Answer
a Domino's Pizza franchisee
wrote...
Staff Member
5 years ago
C) a producer of unique iPhone applications

Explanation:C) Venture capitalists are very selective about their investments: They look for the potential of a public stock offering; therefore, a venture capitalist would likely provide financing only to businesses that have the potential to become larger regional or national companies.A company that makes unique iPhone applications isthe most likely of the four choices to progress to a public stock offering. A pizza franchisee would not be eligible for a public stock option, since the franchisee does not control many aspects of the franchise company's brand. Neither a modern art gallery nor a private accountantnor a coffee bar represent distinctive businesses that would be likely to appeal to a venture capitalist
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