1.A venture capitalist would typically do all of the following EXCEPT: A) provide business expertise and confidentiality. B) assist in the development of management teams. C) manage the company after it has gone public. D) force the entrepreneur to carefully consider the viability of the project through the development of a business plan. The correct answer was C) Venture capitalists also provide risk capital. 2.A manufacturing company would seek mezzanine financing in which of the following scenarios? A) A company preparing for an initial public offering. B) A company ready for a major marketing campaign. C) A company already producing and selling a product, seeking an initial expansion of operations. D) A company seeking a physical plant expansion. The correct answer was A) All of the above scenarios are different stages of later-stage financing. A company ready for a major marketing campaign or a physical plant expansion is seeking third-stage financing. An initial expansion of operations describes second-stage financing. The capital provided to prepare for an initial public offering is at the mezzanine stage. 3.The founders of the ABCD Corporation believe their idea for a new weight-loss pill will be tremendously successful. ABCD Corporation is currently seeking venture capitalists to invest in their company so they can do further research and hopefully someday develop their idea into a marketable product. This stage of venture capital investing can best be described as: A) first-stage. B) formative-stage. C) second-stage. D) seed-stage. The correct answer was D) First-stage financing is used to begin manufacturing and sales of a product. Formative-stage financing includes the seed-stage and the early-stage, but is too broad of a description for this situation. Second-stage financing is used for the initial expansion of a company already producing and selling a product. Seed-stage best describes this scenario, because ABCD is seeking financing to support product development and market research. There is some overlap between the stages, so read the question carefully. 4.The different stages of venture capital investing are generally grouped according to the: A) rights and responsibilities of the investor. B) stage of development of the venture. C) amount of the investment. D) liquidity of the investment. The correct answer was B) The stages of venture capital investment are categorized according to the point the venture is in the business cycle. 5.Venture-capital investing will appeal to investors who: A) are willing to accept a high-risk profile and illiquidity. B) have a short time horizon. C) have limited experience in business operations. D) make investment decisions based on historical risk and return data. The correct answer was A) Venture capital investments are characterized by illiquidity and a high-risk profile. Venture capital is a long-term investment not suitable for investors with short time horizons. Since investors may have to act as an operational adviser to the companies in which they invest, those with limited management experience may not want to get involved. There is little historical data available for venture-capital investments, so investors who depend on such data to make decisions are not likely to invest in this arena. | 
发表于 2008-4-4 13:56
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