Which of the Following Is a Reason Why an Investor

Multiple Choice

Which of the following is a reason why an investor would choose to invest in new and growing firms as a limited partner in a venture capital firm rather than making those investments directly by themselves?

A) Venture capital firms use their control of the companies they invest in to protect those investments.
B) The investments of venture capital firm are less diversified than the investments of a single individual.
C) A venture capital firm generally has a narrow range of expertise among its general partners.
D) The investor will have a direct say in how the companies that the venture capital firm funds will be run.
E) The venture capital firm guarantees a higher return.