Among the Possible Exit Strategies Employed by Venture Capitalists,which of the Following

question 58

Multiple Choice

Among the possible exit strategies employed by venture capitalists,which of the following describes the redemption option?

• A) exit through an initial public offering
• B) exit through a sale of the company directly to another company
• C) exit through selling the company back to the founders
• D) none of the above

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Definitions:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Investment Banks

Financial institutions that provide services such as underwriting, mergers and acquisitions, and advisory services to corporations and governments.

Lehman Brothers

A former global financial services firm that filed for bankruptcy in 2008, becoming a symbol of the largest bankruptcy in U.S. history and a catalyst for the global financial crisis.

Bankrupt

A financial condition in which an individual or organization is unable to meet their debt obligations.