Which of the Following Statements Is False Concerning the Profitability

question 88

Multiple Choice

Which of the following statements is false concerning the profitability of venture capital investments?

• A) The average compound annual return during the mid 1990s was around 30%.
• B) A weak correlation exists between venture returns and returns on small stock mutual funds.
• C) Venture returns are quite volatile,ranging from negative returns to 150% in 1999.
• D) A strong positive correlation exists between venture returns and returns on small stock mutual funds.

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Definitions:

Equipment Account

An account in financial records that tracks the cost and accumulated depreciation of equipment owned by a business.

Unamortized Patent

The portion of a patent's cost that has not yet been expensed through amortization.

Consolidation

Consolidation involves combining the financial statements of multiple subsidiary entities into those of a single parent entity, providing a unified view of financial performance and position.

Patent Account

An accounting record that reflects the value of patents a company owns, including costs associated with obtaining and protecting these intellectual properties.