Which One of the Following Statements Concerning Venture Capitalists Is

question 75

Multiple Choice

Which one of the following statements concerning venture capitalists is correct?

• A) Venture capitalists always assume management responsibility for the companies they finance.
• B) Exit strategy is a key consideration when selecting a venture capitalist.
• C) Venture capitalists limit their services to providing money to start-up firms.
• D) Most venture capitalists are long-term investors in the companies they finance.
• E) A venture capitalist normally invests in a new idea from conception through the IPO.

---

Definitions:

Invested Assets

Assets that are purchased or acquired for the purpose of generating income or appreciating in value.

Managerial Efficiency

Refers to the effectiveness with which managers utilize resources to achieve an organization's objectives and optimize operations.

Investment Turnover

A ratio that measures the efficiency of a company in generating sales from its investments in assets.

Assets

The resources owned by a business.