Private Equity Funds (PEF) Differ from Traditional Venture Capital (VC)

question 67

Multiple Choice

Private equity funds (PEF) differ from traditional venture capital (VC) funds in that:

• A) VC operates mainly in lesser-developed countries while PEF do not.
• B) VC typically invests in family business whereas PEF do not.
• C) VC is almost unavailable to emerging markets while PEF capital is available.
• D) All of the above are true.

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Definitions:

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over time, typically measured as the percentage increase in real gross domestic product (GDP).

Mid-20th Century

Refers to the period approximately from the 1940s to the 1950s, marking significant global events including World War II and the beginning of the Cold War.

Capital Formation

The process of building up the capital stock of a country through investing in productive plants and equipment.

Rate of Savings

The proportion of disposable income that is saved rather than spent on goods and services.