Which of the Following Statements Is NOT True Regarding Venture

question 41

Multiple Choice

Which of the following statements is NOT true regarding venture capitalists?

• A) They can provide substantial capital for young companies.
• B) The firms offer limited partners a number of advantages over investing directly in start-ups themselves as angel investors.
• C) They use their control to protect their investments, so they may therefore perform a key nurturing and monitoring role for the firm.
• D) They might invest for strategic objectives in addition to the desire for investment returns.

---

Definitions:

Historical Relationship

Refers to the analysis of past interactions or correlations between variables to predict future trends or behaviors.

Bad Debt Expense

This refers to the amount of receivables a company does not expect to collect and hence records as an expense on its income statement.

Outstanding Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered but not yet paid for.

Income Statement Approach

A method used to determine income tax liabilities by examining the revenues, expenses, gains, and losses reported on a company's income statement.