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Small-business investment companies (SBICs): a. take a more balanced approach in their choices than venture capital companies. b. have strict eligibility guidelines. c. have immediate participation loan programs. d. demand a representative on the board of directors of the business.

Respuesta :

Answer: a

Explanation: The history of private equity and venture capital and the development of these asset classes has occurred through a series of boom and bust cycles since the middle of the 20th century. Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital experienced growth along parallel, although interrelated tracks. Since the origins of the modern private equity industry in 1946, there have been four major epochs marked by three boom and bust cycles. The early history of private equity from 1946 through 1981 was characterized by relatively small volumes of private equity investment, rudimentary firm organizations and limited awareness of and familiarity with the private equity industry . the Small Business Administration (SBA) is the Small Business Investment Company (SBIC) program. This program might help you get financing for your small business.

An SBIC is a private lending company which is licensed and regulated by the. SBICs offer venture capital financing to higher-risk small businesses and SBIC loans are guaranteed by the SBA. Several methods exist to garner financing for your business. Some business owners take out bank loans or credit cards. Other businesses turn to organizations that specialize in funding startups with equity, or use other equity financing methods.

Equity financing is a method of gathering funds from investors to finance your business. Equity financing involves raising money by offering portions of your company, called shares, to investors. When a business owner uses equity financing, they are selling part of their ownership interest in their business . The small-business investment companies (SBICs) take a more balanced approach in their choices than venture capital companies.