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LOS g, (Part 1): Explain the stages in venture capital investing.
Q1. Venture-capital investing will appeal to investors who:
A) have a short time horizon.
B) are willing to accept a high-risk profile and illiquidity.
C) make investment decisions based on historical risk and return data.
Q2. 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) liquidity of the investment.
Q3. 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) seed-stage.
Q4. A manufacturing company would seek mezzanine financing in which of the following scenarios?
A) A company already producing and selling a product, seeking an initial expansion of operations.
B) A company ready for a major marketing campaign.
C) A company preparing for an initial public offering.
Q5. A venture capitalist would typically do all of the following EXCEPT:
A) manage the company after it has gone public.
B) provide business expertise and confidentiality.
C) force the entrepreneur to carefully consider the viability of the project through the development of a business plan.
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发表于 2009-2-28 17:25
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