A Venture's "Riskiness" in Terms of the Likelihood of Poor

question 33

True/False

A venture's "riskiness" in terms of the likelihood of poor performance or failure decreases as it moves from its development stage through to its rapid-growth stage.

---

Definitions:

Weighted Average Cost of Capital (WACC)

The rate that a company is expected to pay on average to all its security holders to finance its assets, a measure of the cost of capital.

Intrinsic Value

The inherent, actual value of an asset, determined by internal characteristics and fundamentals, rather than current market price.

Closely Held Corporation

A corporation owned by a small group of people who might also be involved in its management, with shares that are not publicly traded.

Stock Market

A public market for the trading of company stock and derivatives at agreed prices.