Which of the Following Statements Is FALSE

question 35

Multiple Choice

Which of the following statements is FALSE?

• A)A venture capital firm is a limited partnership that specializes in raising money to invest in the private equity of young firms.
• B)Venture capitalists typically control about three-quarters of the seats on a start-up's board of directors,and often represent the single largest voting block on the board.
• C)The initial capital that is required to start a business is usually provided by the entrepreneur herself and her immediate family.
• D)Individual investors who buy equity in small private firms are called angel investors.

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Definitions:

Intracompany Comparability

This term is not commonly used; it may refer to the ability to compare financial information within the same company across different periods or departments.

LIFO

Last In, First Out (LIFO) is an inventory valuation method that assumes the most recently produced or acquired items are the first to be sold, affecting the cost of goods sold and inventory valuation.

Straight-Line Method

A method of calculating depreciation by distributing the cost evenly across an asset's useful life.