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Manager
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Start-up companies financed by venture capitalist have a [#permalink]
 10 Aug 2006, 18:40
Question Stats:
100% (02:02) correct
0% (00:00) wrong based on 4 sessions
Start-up companies financed by venture capitalist have a much lower failure rate than companies financed by other means. Source of financing, therefore, must be a more important causative factor in the success of a start-up company than are such factors as the personal characteristics of the entrepreneur, the quality of strategic planning, or the management structure of the company.
Which of the following, if true, most seriously weakens the argument above?
(A) Venture capitalists tend to be more responsive than other sources of financing to changes in a start-up company’s financial needs.
(B) The strategic planning of a start-up company is a less important factor in the long-term success of the company than are the personal characteristics of the entrepreneur.
(C) More than half of all new companies fall within five years.
(D) The management structures of start-up companies are generally less formal than the management structures of ongoing businesses.
(E) Venture capitalists base their decisions to fund start-up companies on such factors as the characteristics of the entrepreneur and quality of strategic planning of the company.
please explain the reasong.
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Senior Manager
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Quote:
(E) it must be. the characteristics that VCs consider important have been indicated as not important in the statement.
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Manager
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why not 'A'
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SVP
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Clear E.
It stresses that even venture capitalists look for the same qualities that have been rejected by the author.
Why not A
A strengthens the argument.
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CEO
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Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008
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Straight E.
_________________
SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008
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Current Student
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Straight (E), fundamental venture capital investment logic.
2:02
*** Always start with E on "which of the following" CRs/PSs/DSs if pressed for time. Another Kaplandish strategy. Disclaimer: may not be effective with the PVue version of GMAT because kaplan simply reprints the same books each year with a different cover...
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