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:

Divided-Consciousness

A theory suggesting that during hypnosis, the consciousness is split; one part responds to the hypnotist's suggestions, while another part, a "hidden observer", remains aware of reality.

Paradoxical Behavior

Actions that appear contradictory to the expected behavior or outcome.

Divided-Consciousness Theory

A hypothesis that proposes the mind can be in two states of consciousness simultaneously, especially in situations such as hypnosis.

Sensory Input

Information that is perceived by the senses (sight, hearing, smell, taste, and touch) and transmitted to the brain for processing.