Finance And Accounting

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
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
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
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
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
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
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
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
Question: Which of the following would be considered an exit strategy?
A
Making a private company public via an initial public offering

B
Bringing in additional investors

C
Firing the management to bring in a more experienced management

D
Converting debt to shares

Note: Not available
1. Report
Question: What is the primary source of a venture capital firm's funding?
A
The venture capital firm invests its own equity in other companies.

B
The partners of the venture capital firm invest individually.

C
The money is raised through the stock market for the purpose of investing it in companies.

D
Other companies invest in the venture capital firm which then invests in new ventures.

Note: Not available
1. Report

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

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

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

Question: What is meant by "exit strategy"?

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

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

Question: What is a "first round" investment?

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

Question: Which of the following would be considered an exit strategy?

Question: What is the primary source of a venture capital firm's funding?