Which of the Following Statements Regarding Exit Strategies Is FALSE

question 33

Multiple Choice

Which of the following statements regarding exit strategies is FALSE?

• A)An alternative way to provide liquidity to its investors is for the company to become a publicly traded company.
• B)An important consideration for investors in private companies is their exit strategy or how they will eventually realize the return from their investment.
• C)Often large corporations purchase successful start-up companies.In such a case,the acquiring company purchases the outstanding stock of the private company,allowing all investors to cash out.
• D)Roughly 25% of venture capital exits from 2002-2012 occurred through mergers or acquisitions.

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Definitions:

Rules of Evidence

Guidelines and legal principles that determine what evidence is admissible in court.

Civil Procedure

The body of law governing the processes and rules that courts follow in civil lawsuits, including the steps of bringing a lawsuit, pretrial proceedings, trial, and possible appeal.

Criminal Procedure

The body of law and rules that govern the process for addressing violations of criminal law, from investigation and arrest through trial and sentencing.

Authentication

The process of establishing the genuineness of an item that is to be introduced as evidence in a trial.