Gompers’ (1995) theoretical model of venture financing focused on miti

Gompers’ (1995) theoretical model of venture financing focused on mitigating principal-agent conflicts between the entrepreneur and an outside financier. His model explains why ventures are developed in stages: the end of each stage is

a. a cash-out opportunity.
b. an opportunity to harvest parts of the venture.
c. a time for management to rest and recuperate.
d. a monitoring opportunity.

ANSWER

D