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:

Correlation Coefficient

A numerical measure that indicates the strength and direction of a linear relationship between two continuous variables.

Variables Relationship

The interaction or correlation between two or more variables, describing how changes in one variable are associated with changes in another.

Validity

The extent to which a test or tool measures what it is intended to measure, indicating the accuracy of the results.

Reliability

The consistency and stability of a measure over time.