Which of the Following Statements Is NOT True Regarding Venture

question 101

Multiple Choice

Which of the following statements is NOT true regarding venture capitalists?

• A)They use their control to protect their investments, so they may therefore perform a key nurturing and monitoring role for the firm.
• B)They can provide substantial capital for young companies.
• C)They might invest for strategic objectives in addition to the desire for investment returns.
• D)The firms offer limited partners a number of advantages over investing directly in start-ups themselves as angel investors.

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Definitions:

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation to each year of the asset's useful life, resulting in consistent annual charges.

Double Declining Balance Method

An accelerated depreciation method that doubles the straight-line depreciation rate, allowing for more depreciation in the early years of an asset's life.

Activity Method

An approach to calculating depreciation for an asset based on its actual usage, wear and tear, rather than an arbitrary time frame.

Depreciation Expense

Systematically dividing the cost of a tangible asset over its estimated useful life.