Question

strong potential for growth and a solid business plan are two measures that venture capitalists use to evaluate potential investments.
venture capitalists are rarely interested in company operations once an investment is made.
ure capitalists seek to generate a return on their stment in less than a year
venture capital is typically sought by new companies that have low upfront costs

Explanation:

To determine the correct statement, we analyze each option:

• First option: Venture capitalists evaluate potential investments based on growth potential and a solid business plan, which is accurate.
• Second option: Venture capitalists often remain involved in company operations post - investment to ensure success, so this is incorrect.
• Third option: Venture capital investments typically have a longer time horizon (not less than a year) for return generation, so this is incorrect.
• Fourth option: New companies seeking venture capital usually have high upfront costs (e.g., tech startups), so this is incorrect.

Answer:

The correct option is the first one: "Strong potential for growth and a solid business plan are two measures that venture capitalists use to evaluate potential investments."