Which of the Following Is NOT True with Correct to Venture

question 13

Multiple Choice

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

• A)They typically invest in young, growing firms that need equity funding but are not ready to go public.
• B)More than half of all VC investing is in businesses that are being created.
• C)They tend to focus on technology firms, which have the potential for high returns but also exhibit a high level of risk.
• D)Because VC funds invest in fairly safe ventures, a low percentage of their ventures fail.
• E)All of these are correct with respect to venture capital funds.

Understand and apply the equity method for accounting investments.

Calculate goodwill and excess of purchase price over book value related to investments.

Determine the initial and subsequent measurement of investments using the equity method.

Account for the effect of investee's net income and dividends on investor's financial statements.

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Definitions:

Economic

Related to the production, distribution, and consumption of goods and services, and the analysis of the wealth of nations and individuals.

Low Income

A financial status where an individual or family earns less than the average or median income, often leading to reduced access to goods and services.

Percentage

A percentage is a portion of 100; it is a way to express a number as a fraction of 100, used to measure or compare the relative size or importance of things.

Ascribed Status

A social position a person is born into or receives involuntarily, based on factors like race, ethnicity, family background, and gender.