Asked by Kylee Israelsen on Jul 11, 2024
Verified
Investors stage their capital commitments as a way to motivate the entrepreneurial team.
Capital Commitments
Obligations of a company to spend capital in the future for the purchase of assets or for investment purposes.
Entrepreneurial Team
A group of individuals with complementary skills and a shared vision, working together to launch and develop a new business venture.
- Grasp the reasons why investors stage their capital commitments.
Verified Answer
EZ
Edison ZhengJul 11, 2024
Final Answer :
True
Explanation :
By committing capital, investors show their belief in the entrepreneurial team and the potential of the project, which can be a motivating factor for the team to work hard and succeed.
Learning Objectives
- Grasp the reasons why investors stage their capital commitments.