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:

SST

Sum of Squares Total, a measure in statistical analysis representing the total variation within a dataset.

SSR

Sum of Squares due to Regression, a measure used in statistical analysis to determine the discrepancy between observed and predicted values.

Coefficient Of Correlation

A statistical measure that represents the strength and direction of a linear relationship between two quantitative variables.

Coefficient Of Determination

A measure that represents the proportion of variance for a dependent variable that's explained by an independent variable or variables in a regression model.