Which of the Following Statements About Venture Capital Funding Is

question 5

Multiple Choice

Which of the following statements about venture capital funding is not correct?

• A) Exiting an investment can occur through an initial public offering or by merger or acquisition.
• B) Venture capital investing is highly risky.
• C) Venture capital firms may focus on a limited geographic area or on specific industries to facilitate monitoring their investments.
• D) Firms hope to exit a start-up firm in 3-5 years.

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Definitions:

Floral Deliveries

The service or business of transporting flowers or floral arrangements to specified locations or recipients.

Units-Of-Activity

A method of depreciation that allocates the cost of an asset over its useful life based on its activity level, such as miles driven or hours used.

Salvage Value

The estimated resale value of an asset at the end of its useful life; it is used in calculating depreciation expense.

Depreciation

The orderly apportionment of a physical asset's cost throughout its useful life.