Question

Which of the following statements is FALSE? Group of answer choices An important consideration for investors in private companies is their exit strategy—how they will eventually realize the return from their investment. The general partners work for the venture capital firm and run the venture capital firm; they are called venture capitalists. 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. Institutional investors such as pension funds, insurance companies, endowments, and foundations manage large quantities of money.

          Which of the following statements is FALSE?
Group of answer choices
An important consideration for investors in private companies is their exit strategy—how they will eventually realize the return from their investment.
The general partners work for the venture capital firm and run the venture capital firm; they are called venture capitalists.
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.
Institutional investors such as pension funds, insurance companies, endowments, and foundations manage large quantities of money.

Added by Marina M.

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