Assertion-Reason on Venture Capital Investment
CMAT 2025 · Innovation & Entrepreneurship · Medium · Venture Capital
Given below are two statements: one is labelled as Assertion (A) and the other is labelled as Reason (R):
Assertion (A): Venture capital investment helps nurture innovative entrepreneurship in India. Reason (R): The venture capital investment is a risk financing generally available in the form of equity or quasi-equity, like a convertible loan instrument, for supporting startups.
In light of the above statements, choose the most appropriate answer from the options given below:
- A.
Both (A) and (R) are true and (R) is the correct explanation of (A)
- B.
Both (A) and (R) are true but (R) is not the correct explanation of (A)
- C.
(A) is true but (R) is false
- D.
(A) is false but (R) is true
B
Explanation
Both statements are true. However, R describes what venture capital is rather than fully explaining why it nurtures innovative entrepreneurship.
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