Venture Capital
 

  1. Question: What is meant when a venture capitalist talks about the "burn rate"?

    A
    The interest rate they expect to earn on their investment

    B
    How quickly a target company may burn out, or fail

    C
    The monthly amount of cash spent on an average by a target company, which can then be used to calculate how far investment dollars will take the company

    D
    How quickly the management team members are phased out

    Note: Not available
    1. Report

  2. Question: What role do committees play?

    A
    They act as specialized arms of the board to address specific topics such as Human Resources or Accounting and Finance Matters.

    B
    They are at a higher level than the board, and are called in to make decisions when the board can not agree.

    C
    They are the key management personnel in the company.

    D
    They are formed to organize things such as employee birthday parties.

    Note: Not available
    1. Report

  3. Question: What would be the attraction of offering a debt round to a target company?

    A
    It can earn more money than equity when the company performs well.

    B
    It is easier to sell off debt.

    C
    It limits how well the management has to perform.

    D
    It is less risky, gives the right to demand repayment, and earns interest.

    Note: Not available
    1. Report

  4. Question: Which of the following would be a possible portfolio for a venture capital firm?

    A
    High tech, Entertainment, E-commerce, Food and Beverage

    B
    High Risk, Low Risk, Zero Risk

    C
    Local, National, Global

    D
    Equity, Bonds, Debt, Convertible Debt

    Note: Not available
    1. Report

  5. Question: What protection do investors in a venture capital fund have?

    A
    They are guaranteed at least a 3% return on the investment.

    B
    They are guaranteed to double their money within one year.

    C
    There is no protection. They are not guaranteed a return on their investment, and it is made very clear that investing in new ventures is risky.

    D
    There is no protection. They are told that they may lose their money, but most likely, they will make a lot of money.

    Note: Not available
    1. Report

  6. Question: What is meant by "exit strategy"?

    A
    It is how the venture capitalist plans to merge with another venture capitalist.

    B
    It is how the target company is planning to liquidate all investors and give them a return for their investment.

    C
    It is how the target company plans to fire key personnel.

    D
    It is how the target company plans to exit their target markets if they are not successful.

    Note: Not available
    1. Report

  7. Question: What options does a venture capitalist have when holding convertible debt?

    A
    They can keep their investment as debt, or convert to equity given some predetermined circumstances have occurred.

    B
    They can sell off some of the debt before converting the rest to equity.

    C
    They can choose immediately if they want debt or equity.

    D
    They can convert back and forth between debt and equity depending on which is more beneficial.

    Note: Not available
    1. Report

  8. Question: How much in funding, in general, will an investor want to invest?

    A
    Enough to allow the company to survive for three years

    B
    Enough to cover management salaries

    C
    Enough to allow the company to reach traction and prove their business model, regardless of time line

    D
    One year's operating expenses

    Note: Not available
    1. Report

  9. Question: What is a "first round" investment?

    A
    An investment in a company which is at the idea stage

    B
    An investment in a company which is early in its growth, typically one generating some revenue

    C
    An investment in a company where the venture capitalist is the very first investor

    D
    An investment in a company in its first year

    Note: Not available
    1. Report

  10. Question: What is the term sheet used for once it is agreed upon and signed?

    A
    It is the legally documented agreement between the venture capitalist and the target company.

    B
    It is used as an outline for the legal team to draw up the official legal agreement between the venture capital firm and the target company.

    C
    It is a guideline for future operations.

    D
    It is similar to a business plan for the upcoming year.

    Note: Not available
    1. Report
First12345Last
/8
Copyright © 2024. Powered by Intellect Software Ltd