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Enrique wants to start a new business, but his bank will not lend him the money he needs. Enrique saw an advertisement sponsored by a business organization that provides financing for promising small companies. The organization sponsoring the advertisement would be considered a(n) ________?

1) entrepreneur
2) venture capitalist
3) franchiser
4) intrapreneur

Answer :

Final answer:

The organization sponsoring the advertisement would be considered a venture capitalist. Venture capitalists are private investors who provide financing for promising small companies.

Explanation:

The organization sponsoring the advertisement would be considered a venture capitalist. Venture capitalists are private investors who provide financing for promising small companies. They often own a substantial portion of the firm and have better information than a typical shareholder would. While being a venture capitalist can be risky because they are investing in startup firms that may not have a proven track record, they try to overcome this by knowing the firm's managers and their business plan personally to ideally provide advice and support beyond just capital.

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