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Web Quizzes
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1
Most venture capital deals have been made in California and Massachusetts.
A)True
B)False
2
Due diligence is the initial evaluation of a deal and lasts between one to three weeks.
A)True
B)False
3
The Small Business Investment Company Act of 1958 separated the use of private capital with government funds to finance small businesses.
A)True
B)False
4
The informal investment market contains the smallest pool of risk capital in the U.S.
A)True
B)False
5
Early-stage financing is usually the least costly type of financing to obtain.
A)True
B)False
6
When factoring the value of your company, which is the most important?
A)Book value
B)Future earnings capacity
C)Outlook of the company
D)Market price of similar companies' stock
7
In most cases, the venture capitalist:
A)seeks control of the company.
B)never expects a seat on the board of directors.
C)expects the management team to run daily operations.
D)prefers not to interfere in planning and expertise areas.
8
In a private venture capital firm, the _______ manages the fund in exchange for a management fee and a percentage of profits.
A)limited partner
B)general partner
C)entrepreneur
D)referral source
9
Most informal investors:
A)invest in firms that are geographically close.
B)make many deals each year.
C)are poorly educated.
D)prefer to invest in large established corporations.
10
Early stage financing typically:
A)is easier to obtain than expansion financing.
B)involves acquisition financing.
C)is where venture capitalists are not likely to be involved.
D)involves between $500,000-$750,000.







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