34. All of the following strategies are ways that a venture capitalist can typically add value except:

A. refinancing by using the firms assets to secure debt financing

B. contacts with established operating firms

C. reviews business plan and offers suggestions and alternatives

D. ability to ask other venture capitalists to invest

35. Which of the following statements regarding leveraged buyouts (LBOs) is false?

A. LBOs provide the lowest average return among the four private equity types.

B. LBOs have a more realistic exit strategy than a venture capital deal

C. Existing common stock is eliminated during the transaction

D. Institutional investors often dedicate a portion of their portfolios to LBOs.

36. A reduction in the due diligence process of evaluating a firms financial statements and operations disadvantage most likely to result from:

A. the development of an auction market for private equity

B. the growth of club deals in the LBO market

C. secondary buyouts

D. increased use of Business Development Companies (BDCs)