Question 1

______ angels are successful entrepreneurs who want active involvement in the companies they invest in.

Accepted Answer

A) Entrepreneur 
B) Professional 
C) Enthusiast 
D) Micromanagement 
A) Entrepreneur 
B) Professional 
C) Enthusiast 
D) Micromanagement

Question 2

An investor has offered $150,000 for 20% of the company.The company has a pre-money valuation of $350,000.Should the entrepreneur consider the offer?

Accepted Answer

A) No; the investor is asking too great a percentage. 
B) Yes; the investor is asking for less than the value of the investment. 
C) No; the investor is not offering enough for the value of the company. 
D) It cannot be determined. 
A) No; the investor is asking too great a percentage. 
B) Yes; the investor is asking for less than the value of the investment. 
C) No; the investor is not offering enough for the value of the company. 
D) It cannot be determined.

Question 3

What will be the first opportunity for the investor to sell stocks on the stock market?

Accepted Answer

A) at any time after the initial investment 
B) when the company is profitable,usually after 5 years 
C) with the company's initial public offering (IPO) 
D) whenever there is a buyer 
A) at any time after the initial investment 
B) when the company is profitable,usually after 5 years 
C) with the company's initial public offering (IPO) 
D) whenever there is a buyer

Question 4

Venture capitalists look for ventures that will earn them ______ times their original investment.

Accepted Answer

A) two to five 
B) five to ten 
C) seven to 12 
D) 10 to 15 
A) two to five 
B) five to ten 
C) seven to 12 
D) 10 to 15

Question 5

Even though your business may not currently be profitable,investors will want to know how many customers you have,primarily because it will show the potential ______.

Accepted Answer

A) for customer satisfaction 
B) to scale the business 
C) marketability 
D) revenue from that base 
A) for customer satisfaction 
B) to scale the business 
C) marketability 
D) revenue from that base

Question 6

Typically,entrepreneurs value their companies based on its current financial performance.

Accepted Answer

A) True 
 B)False

Question 7

Very few founding CEOs are pushed out after giving up equity to VCs.

Accepted Answer

A) True 
 B)False

Question 8

What is the ultimate reason for trading equity for financial support?

Accepted Answer

A) It is more likely that the entrepreneur will build a more valuable company. 
B) It is usually a deal/no deal option. 
C) There will be more people interested in the company's success. 
D) Preparing for the questions asked in pitching and due diligence will ultimately improve the company. 
A) It is more likely that the entrepreneur will build a more valuable company. 
B) It is usually a deal/no deal option. 
C) There will be more people interested in the company's success. 
D) Preparing for the questions asked in pitching and due diligence will ultimately improve the company.

Question 9

Entrepreneurs can seek advice from lawyers and accountants to help determine the market rates for companies like theirs.

Accepted Answer

A) True 
 B)False

Question 10

______ angels are usually former business executives seeking profit who often are also looking to play a large part in the company.

Accepted Answer

A) Corporate 
B) Entrepreneur 
C) Professional 
D) Enthusiast 
A) Corporate 
B) Entrepreneur 
C) Professional 
D) Enthusiast

Question 11

When valuing a seed-stage,startup,or early-stage company,which of the following is most likely to be considered?

Accepted Answer

A) the company's history of sales 
B) how much time it will take for the business to become profitable 
C) the length of time invested in developing the product or service 
D) the amount of capital already raised by the founders 
A) the company's history of sales 
B) how much time it will take for the business to become profitable 
C) the length of time invested in developing the product or service 
D) the amount of capital already raised by the founders

Question 12

How is a seed-stage company valued?

Accepted Answer

A) on the anticipation of future growth 
B) on the value that it has on hand 
C) by the number of shareholders 
D) on the basis of its financial history 
A) on the anticipation of future growth 
B) on the value that it has on hand 
C) by the number of shareholders 
D) on the basis of its financial history

Question 13

Which of the following spawned the growth of a whole new generation of venture capitalist companies?

Accepted Answer

A) general business growth 
B) the improving economy of second- and third-world countries 
C) the rise of smartphones and tablets 
D) the 10-year cycle of venture capitalists 
A) general business growth 
B) the improving economy of second- and third-world countries 
C) the rise of smartphones and tablets 
D) the 10-year cycle of venture capitalists

Question 14

In early-stage financing,small amounts are given so that entrepreneurs can prove a business concept.

Accepted Answer

A) True 
 B)False

Question 15

Minority business angels account for what percentage of the total angel investor population in the United States?

Accepted Answer

A) 13% 
B) 0% 
C) 20% 
D) 25% 
A) 13% 
B) 0% 
C) 20% 
D) 25%

Question 16

Describe what you should look for during your assessment of a venture capitalist.

Accepted Answer

In addition to considering the financial

Question 17

Entrepreneurs should not conduct due diligence on potential venture capital investors.

Accepted Answer

A) True 
 B)False

Question 18

______ consist(s)of small amounts of capital given to help prove a concept.

Accepted Answer

A) Direct cross-subsidies 
B) Seed-stage financing 
C) Startup financing 
D) Early-stage financing 
A) Direct cross-subsidies 
B) Seed-stage financing 
C) Startup financing 
D) Early-stage financing

Question 19

Imagine that you have a new,tested invention that will require a million dollars in order to produce enough of the product to return a profit.What considerations should you review before approaching a venture capitalist?

Accepted Answer

Ideally,the entrepreneur should have som

Question 20

______ angels sometimes seek to be paid advisers.They generally come from a profession such as lawyers or accountants.

Accepted Answer

A) Corporate 
B) Entrepreneur 
C) Professional 
D) Enthusiast 
A) Corporate 
B) Entrepreneur 
C) Professional 
D) Enthusiast

______ angels are successful entrepreneurs who want active involvement in the companies they invest in.

An investor has offered $150,000 for 20% of the company.The company has a pre-money valuation of $350,000.Should the entrepreneur consider the offer?

What will be the first opportunity for the investor to sell stocks on the stock market?

Venture capitalists look for ventures that will earn them ______ times their original investment.

Even though your business may not currently be profitable,investors will want to know how many customers you have,primarily because it will show the potential ______.

Typically,entrepreneurs value their companies based on its current financial performance.

Very few founding CEOs are pushed out after giving up equity to VCs.

What is the ultimate reason for trading equity for financial support?

Entrepreneurs can seek advice from lawyers and accountants to help determine the market rates for companies like theirs.

______ angels are usually former business executives seeking profit who often are also looking to play a large part in the company.

When valuing a seed-stage,startup,or early-stage company,which of the following is most likely to be considered?

How is a seed-stage company valued?

Which of the following spawned the growth of a whole new generation of venture capitalist companies?

In early-stage financing,small amounts are given so that entrepreneurs can prove a business concept.

Minority business angels account for what percentage of the total angel investor population in the United States?

Describe what you should look for during your assessment of a venture capitalist.

Entrepreneurs should not conduct due diligence on potential venture capital investors.

______ consist(s)of small amounts of capital given to help prove a concept.

Imagine that you have a new,tested invention that will require a million dollars in order to produce enough of the product to return a profit.What considerations should you review before approaching a venture capitalist?

______ angels sometimes seek to be paid advisers.They generally come from a profession such as lawyers or accountants.

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Developing Networks and Building Teams

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Bootstrapping and Crowdfunding for Resources

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Financial Statements and Projections for Startups

The Pitch Deck

Filters

Exam 13: Financing for Startups

______ angels are successful entrepreneurs who want active involvement in the companies they invest in.

An investor has offered $150,000 for 20% of the company.The company has a pre-money valuation of $350,000.Should the entrepreneur consider the offer?

What will be the first opportunity for the investor to sell stocks on the stock market?

Venture capitalists look for ventures that will earn them ______ times their original investment.

Even though your business may not currently be profitable,investors will want to know how many customers you have,primarily because it will show the potential ______.

Typically,entrepreneurs value their companies based on its current financial performance.

Very few founding CEOs are pushed out after giving up equity to VCs.

What is the ultimate reason for trading equity for financial support?

Entrepreneurs can seek advice from lawyers and accountants to help determine the market rates for companies like theirs.

______ angels are usually former business executives seeking profit who often are also looking to play a large part in the company.

When valuing a seed-stage,startup,or early-stage company,which of the following is most likely to be considered?

How is a seed-stage company valued?

Which of the following spawned the growth of a whole new generation of venture capitalist companies?

In early-stage financing,small amounts are given so that entrepreneurs can prove a business concept.

Minority business angels account for what percentage of the total angel investor population in the United States?

Describe what you should look for during your assessment of a venture capitalist.

Entrepreneurs should not conduct due diligence on potential venture capital investors.

______ consist(s)of small amounts of capital given to help prove a concept.

Imagine that you have a new,tested invention that will require a million dollars in order to produce enough of the product to return a profit.What considerations should you review before approaching a venture capitalist?

______ angels sometimes seek to be paid advisers.They generally come from a profession such as lawyers or accountants.

Practicing Entrepreneurship

Activating an Entrepreneurial Mindset

Creating and Recognizing New Opportunities

Using Design Thinking

Building Business Models

Developing Your Customers

Testing and Experimenting With New Ideas

Developing Networks and Building Teams

Creating Revenue Models

Planning for Entrepreneurs

Anticipating Failure

Bootstrapping and Crowdfunding for Resources

Navigating Legal and Ip Issues

Engaging Customers Through Marketing

Supporting Social Entrepreneurship

Financial Statements and Projections for Startups

The Pitch Deck

Filters