Question 1

Angel investors usually look for opportunities in young startups that can be expected to return 10 times their investment in five years.

Accepted Answer

A) True 
 B)False

Question 2

In general,entrepreneurs may raise what amount through the 3 Fs?

Accepted Answer

A) up to $1,000 
B) between $500 and $20,000 
C) between $25,000 and $200,000 
D) between $1,000 and $100,000 
A) up to $1,000 
B) between $500 and $20,000 
C) between $25,000 and $200,000 
D) between $1,000 and $100,000

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

A/an ______ is a type of investor who uses his or her own money to provide funds to young startup private businesses run by entrepreneurs who are neither friends nor family.

Accepted Answer

A) seed investor 
B) bridge investor 
C) equity investor 
D) angel investor 
A) seed investor 
B) bridge investor 
C) equity investor 
D) angel investor

Question 5

Equity financing is defined as ______.

Accepted Answer

A) the value of the total company assets 
B) the value a company earns and borrows against 
C) the sale of shares of stock in exchange for cash 
D) a debt incurred by a company 
A) the value of the total company assets 
B) the value a company earns and borrows against 
C) the sale of shares of stock in exchange for cash 
D) a debt incurred by a company

Question 6

The term ______ refers to a rigorous process that evaluates an investment opportunity prior to a deal being finalized.

Accepted Answer

A) investment investigation 
B) valuation 
C) due diligence 
D) investor assessment 
A) investment investigation 
B) valuation 
C) due diligence 
D) investor assessment

Question 7

How much return does a typical angel investor expect from his or her investment?

Accepted Answer

A) Angel investors have no expectation of return. 
B) double the amount invested within 2 years 
C) 10 times the investment in 5 years 
D) 3 times the investment within 3 years 
A) Angel investors have no expectation of return. 
B) double the amount invested within 2 years 
C) 10 times the investment in 5 years 
D) 3 times the investment within 3 years

Question 8

Describe what might occur during the market analysis component of due diligence,prior to the actual investment.

Accepted Answer

Consideration should be given to establi

Question 9

______ 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 10

What exit strategy allows the entrepreneur an opportunity to purchase back venture capital stock at cost and an additional premium?

Accepted Answer

A) IPO 
B) exit clause 
C) buyback 
D) retract clause 
A) IPO 
B) exit clause 
C) buyback 
D) retract clause

Question 11

Imagine that you are about to go on Shark Tank to obtain financial backing.Describe what factors you should consider when valuing your company.

Accepted Answer

Answers should address the market condit

Question 12

An investor offers $150,000 for 30% of the company.What is the post-money valuation of the company?

Accepted Answer

A) $350,000 
B) $500,000 
C) $50,000 
D) It cannot be determined. 
A) $350,000 
B) $500,000 
C) $50,000 
D) It cannot be determined.

Question 13

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 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

What people might be interviewed in the course of due diligence?

Accepted Answer

The founding team will be assessed for l

Question 16

______ 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

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The easiest way for startups to determine their company's potential is to ______.

Accepted Answer

A) check out how similar companies in the same industry are being valued 
B) determine the economic health of the market area 
C) look at the track record of the cofounding team 
D) analyze the company's financial forecast 
A) check out how similar companies in the same industry are being valued 
B) determine the economic health of the market area 
C) look at the track record of the cofounding team 
D) analyze the company's financial forecast

Question 19

______ 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 20

What practice allows larger companies to purchase smaller companies to increase profitability or eliminate competition?

Accepted Answer

A) acquisitions 
B) LLCs 
C) IPOs 
D) buybacks 
A) acquisitions 
B) LLCs 
C) IPOs 
D) buybacks

Angel investors usually look for opportunities in young startups that can be expected to return 10 times their investment in five years.

In general,entrepreneurs may raise what amount through the 3 Fs?

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

A/an ______ is a type of investor who uses his or her own money to provide funds to young startup private businesses run by entrepreneurs who are neither friends nor family.

Equity financing is defined as ______.

The term ______ refers to a rigorous process that evaluates an investment opportunity prior to a deal being finalized.

How much return does a typical angel investor expect from his or her investment?

Describe what might occur during the market analysis component of due diligence,prior to the actual investment.

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

What exit strategy allows the entrepreneur an opportunity to purchase back venture capital stock at cost and an additional premium?

Imagine that you are about to go on Shark Tank to obtain financial backing.Describe what factors you should consider when valuing your company.

An investor offers $150,000 for 30% of the company.What is the post-money valuation of the company?

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

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

What people might be interviewed in the course of due diligence?

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

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

The easiest way for startups to determine their company's potential is to ______.

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

What practice allows larger companies to purchase smaller companies to increase profitability or eliminate competition?

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

Angel investors usually look for opportunities in young startups that can be expected to return 10 times their investment in five years.

In general,entrepreneurs may raise what amount through the 3 Fs?

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

A/an ______ is a type of investor who uses his or her own money to provide funds to young startup private businesses run by entrepreneurs who are neither friends nor family.

Equity financing is defined as ______.

The term ______ refers to a rigorous process that evaluates an investment opportunity prior to a deal being finalized.

How much return does a typical angel investor expect from his or her investment?

Describe what might occur during the market analysis component of due diligence,prior to the actual investment.

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

What exit strategy allows the entrepreneur an opportunity to purchase back venture capital stock at cost and an additional premium?

Imagine that you are about to go on Shark Tank to obtain financial backing.Describe what factors you should consider when valuing your company.

An investor offers $150,000 for 30% of the company.What is the post-money valuation of the company?

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

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

What people might be interviewed in the course of due diligence?

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

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

The easiest way for startups to determine their company's potential is to ______.

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

What practice allows larger companies to purchase smaller companies to increase profitability or eliminate competition?

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