Which of the Following Is True

question 43

Multiple Choice

Which of the following is true  

• A) Independent, venture-capital-based start-ups by entrepreneurs tend to outperform corporate start-ups significantly.
• B) New ventures started within a corporation performed better than those started independently by entrepreneurs.
• C) Independent entrepreneurs find difficulty in maintaining a long-term commitment.
• D) Corporate ventures become profitable twice as fast as independent ventures.

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Definitions:

IPO

Initial Public Offering; the process through which a private company becomes publicly traded by offering its shares for sale to the general public for the first time.

Standby Underwriter

A financial entity that agrees to purchase any unsold shares after a public offering to ensure the issuing company raises the capital needed.

Underpriced IPOs

Initial Public Offerings priced below their market value, often leading to significant investor interest and potential profit.

Oversubscribed IPOs

Initial Public Offerings for which the demand for shares exceeds the number of shares available.