From Which of the Following Does a Venture Capital Company

Multiple Choice

From which of the following does a venture capital company usually achieve its greatest return?

A) The dividends distributed by the company it has bought into.
B) Capital gains upon the sale of the company it has invested in.
C) Through the acquisition of buy-in capital (MBI) .
D) From the spread it achieves by borrowing at a lower interest rate than it lends to the company it has invested in.
E) By hedging its investment risk in the company it has acquired through the use of derivatives.