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Multiple Choice Questions 1.A business plan generally contains:I) a description of

Question : Multiple Choice Questions 1.A business plan generally contains:I) a description of : 1409488

 

Multiple Choice Questions
 

1.A business plan generally contains:

I) a description of the proposed products;
II) a description of the potential market;
III) a description of the underlying technology;
IV) a description of resources needed 
 
 

A. I only

B. I and II only

C. II and III only

D. I, II, III, and IV

2.Equity investment in start-up private companies is called: 
 
 

A. venture capital.

B. mezzanine financing.

C. initial public offering (IPO).

D. seasoned equity offering (SEO).

3.The market for venture capital refers to the:

I) private financial marketplace for providing equity investment for small, start-up firms;
II) bond market;
III) market for providing equity to well-established firms 
 
 

A. I only

B. II only

C. II and III only

D. III only

4.Which of the following statements is generally true of venture capital (VC) firms? 
 
 

A. VCs are always silent partners in the start-up company that they finance.

B. VCs always have a majority of directors in the start-up company.

C. VCs generally provide management advice and contacts in addition to capital.

D. VCs are combinations of publicly-traded companies.

5.Arrange the following in chronological order for a typical start-up firm:
I) VC financing; II) mezzanine financing; III) stage 1, 2, 3, 4, etc., financing; IV) IPO 
 
 

A. I, II, III, and IV

B. I, III, II, and IV

C. IV, I, II, and III

D. III, I, II, and IV

6.Venture capitalists provide start-up companies: 
 
 

A. all the money they will need up front.

B. enough money at each stage so that they can reach the next stage or major checkpoint.

C. assistance in managing the initial public offering (IPO).

D. funding intended to buy-out the company's founders.

7.Wealthy individuals who provide equity investment for new firms are called:
I) white knights; II) red herrings; III) angel investors 
 
 

A. I only

B. I and II only

C. III only

D. II only

8.Generally, venture capital funds are organized as:
I) proprietorships; II) corporations; III) limited private partnerships 
 
 

A. I only

B. II only

C. III only

D. I and II only

9.Venture capital investment was highest in the year: 
 
 

A. 1999.

B. 2000.

C. 2003.

D. 2005.

10.Large technology firms like Intel, Johnson and Johnson, and Sun Microsystems that provide equity capital to new innovative companies are called: 
 
 

A. angel investors.

B. corporateventurers.

C. white knights.

D. mezzanine financiers.

 

 

Solution
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