Which of the Following Statements Is FALSE

question 9

Multiple Choice

Which of the following statements is FALSE?

• A) The general partners work for 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.

---

Definitions:

Capital

Assets or resources that are used in the production of goods and services, including physical assets like machinery and buildings, as well as financial resources.

Marginal Revenue Product

The extra revenue generated by employing an additional unit of a factor, such as labor or capital.

Perfect Competitor

A theoretical market structure where numerous small firms sell identical products, and no single seller can influence the market price.

Monopolist

A monopolist is a sole provider of a good or service in a market, having the power to influence the price and quantity of the product.