Question

__________ provide financing to new or emerging companies with high profit potential. In return, these organizations expect a share of ownership in the company.

A. Commercial banks
B. Venture capital firms
C. Federal Reserve banks
D. Investment bankers

Answer 1

Venture capital firms provide financing to new companies in exchange for a share of ownership. They gather money from various investors and provide advice and guidance to startups.

Step-by-step explanation:

Venture capital firms provide financing to new or emerging companies with high profit potential. In return, these organizations expect a share of ownership in the company. They gather money from various individual or institutional investors, including banks, college endowments, insurance companies, and corporate pension funds. Additionally, venture capital firms offer advice and guidance to startups on products, customers, and key employees.