Which of the Following Is Not True with Respect to Venture

question 76

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 negotiate the terms of its investment, including the amount of funds it is willing to invest.
• B) One common exit strategy for VC funds is to sell its equity stake to the public before the business engages in a public stock offering.
• C) VC funds receive money from wealthy investors and from pension funds that are willing to maintain the investment for a long-term period.
• D) All of the above are true with respect to VC funds.

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Definitions:

Credit Cards

Financial tools issued by banks allowing cardholders to borrow funds within a pre-approved limit for purchases or cash advances, typically requiring repayment with interest.

Mortgages

Loans secured by real property, typically used by individuals or businesses to purchase homes or real estate.

Bank Loans

Funds lent by a bank to a borrower at a specified interest rate for a fixed term.

Financial Assets

Financial assets are intangible assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and the rights to receive cash in the future.