Which of the Following Statements Regarding Exit Strategies Is FALSE

question 105

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 2001-2005 occurred through mergers or acquisitions.

---

Definitions:

Category Killer

A large retail store specializing in a specific product category, so dominant that it drives out or "kills" smaller competitors.

Scrambled Merchandising

Retail strategy where a store sells a wide variety of goods that are unrelated, aiming to increase foot traffic and maximize sales.

Hypermarkets

Large retail stores that combine a supermarket and a department store, offering a wide range of products at low prices.

One-Stop Shopping

A retail convenience concept where customers can meet all their buying needs in a single location, saving time and effort.