Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) The general partners work for the venture capital firm and run the venture capital firm; they are called venture capitalists.
• B) An important consideration for investors in private companies is their exit strategy - how they will eventually realize the return from their investment.
• C) When a company founder decides to sell equity to outside investors for the first time, it is common practice for private companies to issue common stock rather than preferred stock to raise capital.
• D) Institutional investors such as pension funds, insurance companies, endowments, and foundations manage large quantities of money.

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Definitions:

Business Graduates

Individuals who have completed an academic degree in business studies, such as a Bachelor's or Master's in Business Administration.

Earn More

The concept of increasing one's income or financial gain through various means such as employment, investment, or entrepreneurship.

Type II Error

The error that occurs when a false null hypothesis is not rejected.

Type I Error

A Type I Error occurs when a true null hypothesis is incorrectly rejected, also known as a "false positive".