Which source of financing has the greatest influence to force a busine

QUESTION

Which source of financing has the greatest influence to force a business owner to sell the enterprise to a competitor and collect a high financial return?

A) banks
B) family
C) angel investors
D) peer-to-peer lenders
E) venture capitalists

ANSWER

Answer: E
Explanation: E) Because venture capitalists get an ownership stake in the businesses they support—and sometimes a majority stake—they have a strong influence on the decision to sell a successful business to profit from their investment.