Which One of the Following Statements Concerning Venture Capitalists Is

question 51

Multiple Choice

Which one of the following statements concerning venture capitalists is correct?

• A)Venture capitalists assume management responsibility for the firms they finance.
• B)Exit strategy is a key consideration when selecting a venture capitalist.
• C)Venture capitalists limit their services to providing money to start-up firms.
• D)Most venture capitalists are long-term investors in a firm.
• E)A venture capitalist normally invests in a new idea and finances that idea until the newly-formed firm can issue an IPO.

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Definitions:

Paasche Price Index

The Paasche Price Index measures the change in the price level of a basket of goods and services between two periods, using the quantities of the current period.

Strong Axiom

A principle or rule with robust implications or requirements, though more context is needed for a specific field application.

Revealed Preference

An economic concept referring to the idea that consumers' choices, reflected in their purchasing decisions, reveal their preferences for certain goods or services over others.

Weak Axiom

In economic theory, a principle stating that if a consumer prefers bundle A to bundle B, then they will not prefer B to A when prices change, keeping income constant.