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.

---

Definitions:

Informative

A characteristic of communication or data that provides new knowledge or insights.

Consequences

Consequences are outcomes or effects that result from an action or condition.

Hypothesis

A suggested explanation for an observable event, intended as an initial basis for additional exploration.

Explanandum

The subject or occurrence that is under investigation in a scientific exploration.