Which One of the Following Statements About Venture Capitalists Is

Which one of the following statements about venture capitalists is not correct?

A) Venture capitalists contribute to equity financing rather than make loans.
B) Venture capitalists are passive investors.
C) Most private venture capitalists are organized as limited partnerships.
D) The federal government licenses some private firms to provide lower-cost funds to entrepreneurs.
E) Angel venture capitalists are wealthy individuals who fund business start-ups.