Which of the Following Statements Is FALSE

question 32

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.

---

Definitions:

Storehouses

Large buildings or warehouses where goods are stored before they are distributed for sale or use.

Landlords

Individuals or entities that own and rent out property, such as buildings or land, to tenants.

Capitalist Economy

A capitalist economy is an economic system where private individuals and businesses own the production and distribution of goods and services, operating for profit in competitive markets.

Antagonism

Active opposition or hostility between individuals or groups, often manifesting in conflicts or competition.