Which of the Following Statements Regarding Exit Strategies Is FALSE

question 33

Multiple Choice

Which of the following statements regarding exit strategies is FALSE?

• A)An alternative way to provide liquidity to its investors is for the company to become a publicly traded company.
• B)An important consideration for investors in private companies is their exit strategy or how they will eventually realize the return from their investment.
• C)Often large corporations purchase successful start-up companies.In such a case,the acquiring company purchases the outstanding stock of the private company,allowing all investors to cash out.
• D)Roughly 25% of venture capital exits from 2002-2012 occurred through mergers or acquisitions.

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Definitions:

Gaming Consoles

Electronic devices designed specifically for playing video games that can be connected to a television or other display media.

Labor Hours

The total number of hours worked by employees within a specific time period, often used to measure productivity or to calculate labor costs.

Production Department

A division within a company responsible for the actual manufacturing or creation of goods and services.

Labor Constraint

Restrictions or limitations on the availability or use of workers that can affect production or service delivery.