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:

Alternatives

Different options or choices available to replace or serve as substitutes for something else.

High Demand

A market condition where the desire and readiness of consumers to purchase a product significantly exceeds the supply, often leading to increased prices.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Enrollment

The process of registering or entering into a system, often used in the context of education or services.