Which One of the Following Statements Concerning Venture Capital Financing

Multiple Choice

Which one of the following statements concerning venture capital financing is correct?

A) Venture capitalists desire shares of common stock but avoid preferred stock.
B) Venture capital is relatively easy to obtain.
C) Venture capitalists rarely assume active roles in the management of the financed firm.
D) Venture capitalists often require at least a forty percent equity position as a condition of financing.
E) Venture capital is relatively inexpensive in today's competitive markets.