UPSC CSE Prelims
Question 85
What does venture capital mean?
View correct answer and explanation
Correct answer: B
Correct Option: B
Explanation: Venture capital is risk-bearing equity or quasi-equity funding for young businesses with high growth potential, often provided for the longer term.
Option-wise Analysis:
A: Incorrect - It is not defined as general short-term working capital for established industries.
B: Correct - Correct: capital financing new and fast-growing entrepreneurial ventures.
C: Incorrect - Emergency loss-cover funds are not the defining function of venture capital.
D: Incorrect - Routine plant replacement and renovation are conventional corporate capital expenditures.