Which of the Following Statements Is False

question 28

Multiple Choice

Which of the following statements is false?

• A) A venture capital firm is a limited partnership that specializes in raising money to invest in the private equity of young firms.
• B) Venture capitalists typically control about three-quarters of the seats on a start-up's board of directors, and often represent the single largest voting block on the board.
• C) The initial capital that is required to start a business is usually provided by the entrepreneur herself and her immediate family.
• D) Individual investors who buy equity in small private firms are called angel investors.

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Definitions:

Pension Fund

A type of investment pool typically set up by an employer to generate stable growth over the long term and provide pensions for employees when they reach the end of their working years.

Quarterly Payments

Quarterly payments are payments made four times a year, often used in the context of dividend distributions to shareholders or in loan repayments.

Compounded Quarterly

Interest calculation method where interest is added to the principal sum of a deposit or loan every quarter, leading to interest amounts that accumulate at a faster rate than annual compounding.

Compounded Monthly

The process where interest earned is added to the principal, so that from that moment on, the interest that has been added also earns interest.