Which of the Following Is NOT True with Respect to Venture

question 1

Multiple Choice

Which of the following is NOT true with respect to venture capital (VC) funds?

• A)When a VC fund decides to invest in a business, it will set out clear requirements that the business must meet to receive the funding.
• B)A VC fund commonly sells its equity stake in a firm to the public before the firm engages in an IPO.
• C)VC funds receive money from wealthy investors and pension funds that are willing to maintain the investment for a long-term period.
• D)All of these are true with respect to VC funds.

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Definitions:

Substitutes

Goods that can serve as replacements for one another; when the price of one increases, demand for the other increases.

Elastic Demand

A situation in which the demand for a good or service is sensitive to price changes, meaning a small change in price leads to a significant change in the quantity demanded.

Total Revenue

The total amount of money a company receives from sales of its products or services, calculated by multiplying the price per unit by the number of units sold.

Delicatessen

A retail establishment that sells a selection of fine, unusual, or foreign prepared foods.