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The statement is false. The virtual machine is shut down by the hypervisor. The virtual machine is informed that the virtual hardware is shutting down once the hypervisor traps the command.

Virtual machines have a number of benefits over real machines and are simple to administer and maintain. On a single physical machine, VMs can run several operating system environments, reducing space, time, and administrative expenses. Virtual appliances are a subset of the larger class of software appliances and are virtual machine images that have already been setup and are prepared to run on a hypervisor. It's referred to as system virtualization. The hypervisor is typically used to manage the resources for each virtual system. A piece of software called a hypervisor can virtualize hardware resources.

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