Question

Which of the following statements is FALSE? A venture capital firm is a limited partnership that specializes in raising money to invest in the private equity of young firms. Venture capitalists typically control all of the seats on a start-up's board of directors, and often represent the single largest voting block on the board. The initial capital that is required to start a business is usually provided by the entrepreneur herself and her immediate family. Individual investors who buy equity in small private firms are called angel investors.

Answer 1

Answer:

Venture capitalists typically control all of the seats on a start-up's board of directors, and often represents the single largest voting block on the board.

Explanation:

A venture capital is a type of capital arrangement by venture capital , provided to start up companies with the prospect of potential growth. Companies that provides financies for start up have a stake in the business they are financing. It is usually a high risk business.

Examples of venture capitalist are

Investment banks, pension funds, insurance companies etc.

Before finances can be made by venture capitalist, the initial capital required to start required to start the business is usually provided by the entrepreneur and his family.