Which of the Following Statements Regarding Exit Strategies Is False

question 25

Multiple Choice

Which of the following statements regarding exit strategies is false?

• A) An alternative way to provide liquidity to its investors is for the company to become a publicly traded company.
• B) An important consideration for investors in private companies is their exit strategy, or how they will eventually realize the return from their investment
• C) Often large corporations purchase successful start-up companies. In such a case, the acquiring company purchases the outstanding stock of the private company, allowing all investors to cash out.
• D) Roughly 25% of venture capital exits from 2001-2005 occurred through mergers or acquisitions.

---

Definitions:

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Myers-Briggs

A type indicator test that categorizes individuals into 16 personality types based on preferences in four dichotomies, intended to understand and improve how people communicate and work together.

Intuitive Type

A personality trait or preference characterized by relying on instinctive feelings rather than factual analysis in decision-making processes.

Learning New Skills

Acquiring new abilities or expertise through practice, study, or experience.