CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Venture capital investments tend to:
A. Have steady cash flows.
B. Be much less active in capital markets.
C. Have potential for restructuring and cost reduction.
Explanation: Large buyout firms are generally significant players in capital markets.

User Contributed Comments 4

User Comment
jpducros Why is C wrong ?
TLamb I may be wrong but I believe C is more characteristic of PE than VC
dotepx It seems its a typo and they mean to ask about 'LBO' not venture firms.
bjw699 TLamb is right about C. What makes this question work is that A is clearly wrong, and VCs do tend to raise most of their capital from private sources.
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