Assertion-Reason on Venture Capital Investment

CMAT 2025 · INE · Medium · Venture Capital

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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:

  1. A.

    Both (A) and (R) are true and (R) is the correct explanation of (A)

  2. B.

    Both (A) and (R) are true but (R) is not the correct explanation of (A)

  3. C.

    (A) is true but (R) is false

  4. D.

    (A) is false but (R) is true

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