Which of the Following Statements Is NOT True

question 57

Multiple Choice

Which of the following statements is NOT true?

• A) Venture capitalists bear a substantial amount of risk when they fund a new business.
• B) Venture capitalists' sole function is to provide financing for new firms.
• C) Modern venture capital firms tend to specialize in a specific line of business, such as hospitality, food manufacturing, or medical devices.
• D) A significant number of venture capital firms focus on high-technology investments.

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Definitions:

Three Sources

Refers to the original means or origins of information, funds, or support, often used in various contexts.

Operating

Related to the day-to-day functions and tasks involved in running a business or an organization.

Investing

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Financing Sections

Parts of financial statements or reports that detail how a company finances its operations, typically including borrowing, repaying debt, and issuing equity.