Which act as an intermediary to link up the sources of ideas and the sources of fund?a.Venture capitalb.Leasingc.None of thesed.Merchant banking
Question
Which act as an intermediary to link up the sources of ideas and the sources of fund?
a. Venture capital
b. Leasing
c. None of these
d. Merchant banking
Solution
Analyzing the Question
The question seeks to identify which option serves as an intermediary that connects sources of ideas (such as entrepreneurs or startups) with sources of funding (like investors or capital).
Relevant Concepts
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Venture Capital (VC): This refers to a type of private equity financing that is provided by venture capital firms to startups and small businesses with perceived long-term growth potential. It serves as an intermediary by providing funds to innovative businesses.
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Leasing: This is a financial arrangement where one party pays to use an asset owned by another party. This does not directly link sources of ideas with sources of funds; it is more about asset acquisition.
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Merchant Banking: This involves providing capital to companies in the form of shares or loans and advising on mergers and acquisitions. Merchant banks undertake a similar intermediary role but often focus more on larger corporations rather than startups.
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None of These: This option would imply that none of the provided choices serve as intermediaries.
Conclusion
The best option that links ideas with funding sources effectively would be:
Final Answer
a. Venture Capital
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