Which of the Following Statements Regarding Exit Strategies Is FALSE

question 33

Multiple Choice

Which of the following statements regarding exit strategies is FALSE?

• A)An alternative way to provide liquidity to its investors is for the company to become a publicly traded company.
• B)An important consideration for investors in private companies is their exit strategy or how they will eventually realize the return from their investment.
• C)Often large corporations purchase successful start-up companies.In such a case,the acquiring company purchases the outstanding stock of the private company,allowing all investors to cash out.
• D)Roughly 25% of venture capital exits from 2002-2012 occurred through mergers or acquisitions.

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Definitions:

Henry Ford

An American industrialist and the founder of Ford Motor Company, who revolutionized the automotive industry with the assembly line method of production, making cars affordable for the average American.

Skilled Laborers

Workers who have specialized training, certifications, or expertise in specific fields, enabling them to perform complex tasks and often command higher wages.

Good Wages

Compensation for employment that is considered sufficient to live on and possibly support a family, often associated with fair or above-average pay.

Charlotte Perkins Gilman

An American feminist, sociologist, and writer of the late 19th and early 20th centuries, known for her advocacy for women's rights and her seminal work, "The Yellow Wallpaper."