Venture Capitalists Are

question 67

Multiple Choice

Venture capitalists are

• A) intermediaries that raise funds from outside investors.
• B) play an active role in overseeing, advising, and monitoring the companies in which they invest.
• C) generally do not want to own the investment forever.
• D) intermediaries that raise funds from outside investors and play an active role in overseeing, advising, and monitoring the companies in which they invest.
• E) intermediaries that raise funds from outside investors, play an active role in overseeing, advising, and monitoring the companies in which they invest, and generally do not want to own the investment forever.

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Definitions:

Nonmonetary Assets

Assets that are not in the form of cash or cannot be quickly converted into cash, such as property, plant, and equipment.

Current Exchange Rate

The rate at which one currency can be exchanged for another at present.

Fair Value Method

The Fair Value Method is an accounting strategy used to value certain assets and liabilities at their current market worth, not based on purchase costs or book value.

Unrealized Gains

Profits that have been achieved on paper from an investment but have not yet been realized through a transaction.