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    Question

    Which of the following statements correctly distinguish

    Venture Capital (VC) from Private Equity (PE)? Venture Capital firms invest primarily in early-stage startups, whereas Private Equity firms invest in mature companies. Ā  Private Equity investments generally involve taking full control of the company, while Venture Capital investments are typically minority stakes. Ā  Private Equity focuses on long-term value creation through operational improvements, whereas Venture Capital focuses on high-growth potential companies . Ā 
    A 1 and 2 only Correct Answer Incorrect Answer
    B 2 and 3 only Correct Answer Incorrect Answer
    C 1 and 3 only Correct Answer Incorrect Answer
    D 1, 2, and 3 Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Explanation: Ā 

    • VC firms fund startups with high growth potential but high risk . Ā 
    • PE firms invest in established companies , often restructuring operations for better returns. Ā 
    • VC investments are minority stakes , whereas PE firms usually acquire controlling stakes to manage operations. Ā 

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