Which of the Following Statements Is FALSE

question 9

Multiple Choice

Which of the following statements is FALSE?

• A) The general partners work for 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.

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Definitions:

Elected Officials

Individuals who have been chosen through a voting process to hold public office positions in government.

Wagner Act

Also known as the National Labor Relations Act of 1935, it established the rights of workers to organize, join labor unions, and engage in collective bargaining.

Employer

An individual or organization that hires and pays individuals for their labor or services.

Negotiations

The process of discussing and aiming to reach a mutual agreement between parties with differing needs or viewpoints.