Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Venture capital became more organized and professional with the 1946 creation of American Research and Development.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Angel investors are eligible to invest as long as they are accredited investors.

Accepted Answer

A) True 
 B)False

Question 5

______ is/are provided to help implement an entrepreneur's research and development.

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 6

An entrepreneur should keep 90% of the equity until the financing has been worked out.

Accepted Answer

A) True 
 B)False

Question 7

In 2018,venture capitalists invested in ______ of seed-stage companies.

Accepted Answer

A) 15% 
B) 7.5% 
C) 25% 
D) 1.5% 
A) 15% 
B) 7.5% 
C) 25% 
D) 1.5%

Question 8

If an entrepreneur issues convertible debt,he or she will lose control of the company.

Accepted Answer

A) True 
 B)False

Question 9

How often will additional funding be awarded by a VC,assuming the company is growing?

Accepted Answer

A) every 8 years 
B) every 10 years 
C) every year or two 
D) every 5 years 
A) every 8 years 
B) every 10 years 
C) every year or two 
D) every 5 years

Question 10

Entrepreneur Mike Moyer suggests creating a process for allocating equity based on the contributions made,including things like time,money,and intellectual property.

Accepted Answer

A) True 
 B)False

Question 11

The average partner in a VC firm will do ______ deals per year.

Accepted Answer

A) 100 
B) roughly 50 
C) five to 10 
D) one to three 
A) 100 
B) roughly 50 
C) five to 10 
D) one to three

Question 12

What signals the end of the due diligence period?

Accepted Answer

A) within 30 days of the initial offer 
B) within 6 months of the initial offer 
C) when the investor has resolved all questions and issues 
D) when all the issues of both parties have been resolved 
A) within 30 days of the initial offer 
B) within 6 months of the initial offer 
C) when the investor has resolved all questions and issues 
D) when all the issues of both parties have been resolved

Question 13

Generally speaking,many corporate angels seek what within the venture?

Accepted Answer

A) a match to his or her own values 
B) a higher rate of return than other investors 
C) a paid position 
D) global expansion 
A) a match to his or her own values 
B) a higher rate of return than other investors 
C) a paid position 
D) global expansion

Question 14

Generally speaking,there are more minority angel funding groups in the United States than women angel groups.

Accepted Answer

A) True 
 B)False

Question 15

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 16

This action allows the stock to be purchased on the open market and gives investors a chance to get a return of cash.

Accepted Answer

A) liquidation 
B) IPO 
C) exit plans and clauses 
D) company registration 
A) liquidation 
B) IPO 
C) exit plans and clauses 
D) company registration

Question 17

The general rule of thumb for new startups is to ______.

Accepted Answer

A) avoid seeking investment for as long as possible 
B) try to get as much funding as possible as soon as possible 
C) immediately line up one committed investor with deep pockets 
D) seek many small investments from a wide range of people right away 
A) avoid seeking investment for as long as possible 
B) try to get as much funding as possible as soon as possible 
C) immediately line up one committed investor with deep pockets 
D) seek many small investments from a wide range of people right away

Question 18

You and your cofounders have spent a year building and testing a home wireless system that is easy to install and will integrate media streaming from phones,television,and the Internet.You have tested the product on family and friends and built a prototype.You now need money to build a pilot test,creating 100 systems and placing them in a display at five selected stores.Identify the best source(s)of capital that you and your cofounders should seek (you will need $100,000).

Accepted Answer

As an early-stage company,and

Question 19

Which of the following is a professional investor who generally invests in early-stage and emerging companies because of perceived long-term growth potential?

Accepted Answer

A) crowdfunder 
B) angel investor 
C) venture capitalist 
D) friend 
A) crowdfunder 
B) angel investor 
C) venture capitalist 
D) friend

Question 20

______ is the company's value after it receives a round of financing.

Accepted Answer

A) Post-money valuation 
B) Seed money valuation 
C) Pre-money valuation 
D) Startup valuation 
A) Post-money valuation 
B) Seed money valuation 
C) Pre-money valuation 
D) Startup valuation

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

Venture capital became more organized and professional with the 1946 creation of American Research and Development.

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

Angel investors are eligible to invest as long as they are accredited investors.

______ is/are provided to help implement an entrepreneur's research and development.

An entrepreneur should keep 90% of the equity until the financing has been worked out.

In 2018,venture capitalists invested in ______ of seed-stage companies.

If an entrepreneur issues convertible debt,he or she will lose control of the company.

How often will additional funding be awarded by a VC,assuming the company is growing?

Entrepreneur Mike Moyer suggests creating a process for allocating equity based on the contributions made,including things like time,money,and intellectual property.

The average partner in a VC firm will do ______ deals per year.

What signals the end of the due diligence period?

Generally speaking,many corporate angels seek what within the venture?

Generally speaking,there are more minority angel funding groups in the United States than women angel groups.

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

This action allows the stock to be purchased on the open market and gives investors a chance to get a return of cash.

The general rule of thumb for new startups is to ______.

Which of the following is a professional investor who generally invests in early-stage and emerging companies because of perceived long-term growth potential?

______ is the company's value after it receives a round of financing.

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

Supplement A: Financial Statements and Projections for Startups

Developing Networks and Building Teams

Supplement B: the Pitch Deck

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

Filters

Exam 13: Financing for Startups

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

Venture capital became more organized and professional with the 1946 creation of American Research and Development.

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

Angel investors are eligible to invest as long as they are accredited investors.

______ is/are provided to help implement an entrepreneur's research and development.

An entrepreneur should keep 90% of the equity until the financing has been worked out.

In 2018,venture capitalists invested in ______ of seed-stage companies.

If an entrepreneur issues convertible debt,he or she will lose control of the company.

How often will additional funding be awarded by a VC,assuming the company is growing?

Entrepreneur Mike Moyer suggests creating a process for allocating equity based on the contributions made,including things like time,money,and intellectual property.

The average partner in a VC firm will do ______ deals per year.

What signals the end of the due diligence period?

Generally speaking,many corporate angels seek what within the venture?

Generally speaking,there are more minority angel funding groups in the United States than women angel groups.

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

This action allows the stock to be purchased on the open market and gives investors a chance to get a return of cash.

The general rule of thumb for new startups is to ______.

Which of the following is a professional investor who generally invests in early-stage and emerging companies because of perceived long-term growth potential?

______ is the company's value after it receives a round of financing.

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

Supplement A: Financial Statements and Projections for Startups

Developing Networks and Building Teams

Supplement B: the Pitch Deck

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

Filters