UPSC Prelims 2014— Question 48

Correct answer: Option B. Venture capital is risk capital invested in new or growing businesses with high growth potential. It is generally longer-term and involves substantial uncertainty, unlike short-term working capital or funds intended merely to cover operating losses. Venture capitalists typically receive an ownership stake or another form of return linked to business performance. Option A: Incorrect. This option does not match the verified answer because its proposition, location, institution, sequence, or combination conflicts with the relevant fact tested in the question. The option reads: “A short-term capital provided to industries” Option B: Correct. This option is consistent with the governing fact or the valid combination identified in the question. The option reads: “A long-term start-up capital provided to new entrepreneurs” Option C: Incorrect. This option does not match the verified answer because its proposition, location, institution, sequence, or combination conflicts with the relevant fact tested in the question. The option reads: “Funds provided to industries at times of incurring losses” Option D: Incorrect. This option does not match the verified answer because its proposition, location, institution, sequence, or combination conflicts with the relevant fact tested in the question. The option reads: “Funds provided for replacement and renovation of industries” The key Prelims lesson is to test each proposition independently before selecting the combination. Where the question uses words such as 'only', 'all', 'none', 'always' or a precise institutional/geographical association, a single inaccurate component is sufficient to eliminate the option. The answer recorded here follows the official answer key for the question-paper series represented by the uploaded source and has been cross-checked against an independent published key. The explanation is intended for conceptual revision rather than as a reproduction of any third-party solution.