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.

Evaluate investment projects using discount and non-discount cash flow models effectively.

Comprehend the importance of the cost of capital in the project evaluation process.

Describe and apply the concept of the discount rate in project evaluation.

Understand the limitations and advantages of various project evaluation methods.

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Definitions:

Single Area

Focusing or concentrating on one particular geographic, professional, or subject matter domain exclusively.

Functional Manager

A manager responsible for a specific business function or department within an organization, such as marketing or finance.

Direct Contribution

The direct financial impact of a specific activity or unit towards the overall profit or revenue of a business.

Line Managers

Managers who have direct responsibility for managing employees and operations, acting as a link between higher management and the workforce.