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Venture capital firms pump millions of dollars each year into a variety of start-up companies, expecting most to fail but a few to give astronomical returns. However, optimism and positivity are keys to success in the start-up industry; no start-up wants to admit that it is on its way towards failure. Therefore, venture capital firms remain uncertain about the status of a majority of their investments.
The conclusion drawn above is based on the assumption that
A. most start-ups have a transparent management hierarchy
B. start-ups should be rewarded for accurately reporting problems to their investors
C. the threat of failure is always good for start-ups, since it helps them maintain their focus
D. investors obtain information about the start-up from no source other than the start-up itself
E. some investors are less concerned with truth about a start-up's management than about the results
OA D
The conclusion drawn above is based on the assumption that
A. most start-ups have a transparent management hierarchy
B. start-ups should be rewarded for accurately reporting problems to their investors
C. the threat of failure is always good for start-ups, since it helps them maintain their focus
D. investors obtain information about the start-up from no source other than the start-up itself
E. some investors are less concerned with truth about a start-up's management than about the results
OA D
