Which of the Following Statements Is FALSE

question 35

Multiple Choice

Which of the following statements is FALSE?

• A)A venture capital firm is a limited partnership that specializes in raising money to invest in the private equity of young firms.
• B)Venture capitalists typically control about three-quarters of the seats on a start-up's board of directors,and often represent the single largest voting block on the board.
• C)The initial capital that is required to start a business is usually provided by the entrepreneur herself and her immediate family.
• D)Individual investors who buy equity in small private firms are called angel investors.

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Definitions:

Long Position

An investment strategy where an investor buys securities with the expectation that they will rise in value over time.

Agricultural Futures

Contracts to buy or sell agricultural commodities at a predetermined price at a specified time in the future, used for hedging or speculating on the price movement of these commodities.

Actively Traded

Describes securities or assets that are frequently bought and sold, indicating high trading volume.