Which of the following is least likely a similarity between buyout funds and venture capital funds? A. They both seek to only acquire a minority stake in the firms they invest in. B. They both make investments with finite investment horizon (usually 3 to 5 years). C. They both often take control of the board of the companies in which they invest.

The correct answer is A. Similar to buyout funds, venture capital funds typically have finite investment horizons (usually 3 to 5 years). Also, they both take control of the board of the companies in which they invest. However, buyout funds almost always buy 100% of a company, whereas venture capital firms only acquire a minority stake - less than 50%. Therefore, option A is the least likely answer.

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- Matt_AnalystPrep
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  28 Dec 2019 at 8:20 pm
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  The correct answer is A.
  
  Similar to buyout funds, venture capital funds typically have finite investment horizons (usually 3 to 5 years). Also, they both take control of the board of the companies in which they invest.
  However, buyout funds almost always buy 100% of a company, whereas venture capital firms only acquire a minority stake – less than 50%. Therefore, option A is the least likely answer.
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