Question 1

What are the important aspects of the JOBS act to today's entrepreneurs?

Accepted Answer

a.Small and mid-sized businesses can obt

Question 2

Which factor is often more favorable in an acquisition, as compared to an IPO?

Accepted Answer

A) Liquidity for founders 
B) Lower expenses and investment banker commissions 
C) Ability to sustain the existing culture 
D) None of the above 
E) All of the above 
A) Liquidity for founders 
B) Lower expenses and investment banker commissions 
C) Ability to sustain the existing culture 
D) None of the above 
E) All of the above

Question 3

Why should you approach business angels? What are the ways of doing that?

Accepted Answer

a.Business angels are more willing to fi

Question 4

Business angels are generally satisfied with a lower return than venture capitalists.

Accepted Answer

A) True 
 B)False

Question 5

The equation for the value of a company with the earnings capitalization method is:

Accepted Answer

A) Company Value = Gross Revenue ÷ Book Value 
B) Company Value = Net Income ÷ Capitalization Rate 
C) Company Value = Net Income × Market price of stocks 
D) Company Value = Sum of Cash Flow for the past five years 
E) Company Value = Price of one share × number of shares 
A) Company Value = Gross Revenue ÷ Book Value 
B) Company Value = Net Income ÷ Capitalization Rate 
C) Company Value = Net Income × Market price of stocks 
D) Company Value = Sum of Cash Flow for the past five years 
E) Company Value = Price of one share × number of shares

Question 6

Which of the following about a potential venture capitalist should be cause for concern?

Accepted Answer

A) The venture capitalist sits on ten boards 
B) Venture capitalist visits the company weekly 
C) Venture capitalist retains significant funds for future investments 
D) The venture capitalist was successful as an Entrepreneur in a related industry 
A) The venture capitalist sits on ten boards 
B) Venture capitalist visits the company weekly 
C) Venture capitalist retains significant funds for future investments 
D) The venture capitalist was successful as an Entrepreneur in a related industry

Question 7

What are the advantages of having a venture capital backed company?

Accepted Answer

a.IPOs of such companies are generally v

Question 8

According to the chapter, the most precise way of valuing a business is asset-based valuation.

Accepted Answer

A) True 
 B)False

Question 9

After the internet bubble burst, angel groups stopped investing in seed-stage companies.

Accepted Answer

A) True 
 B)False

Question 10

The company planning a public offering must first select an investment bank.

Accepted Answer

A) True 
 B)False

Question 11

After the IPO, the company has to file a registration statement with the SEC.

Accepted Answer

A) True 
 B)False

Question 12

The liquidation value of a company is a strict valuation placed on an insolvent company by the courts during a bankruptcy proceeding.

Accepted Answer

A) True 
 B)False

Question 13

How much do business angels invest annually in the US?

Accepted Answer

A) $5 - 6 billion 
B) $10 - 15 billion 
C) $15 - 20 billion 
D) $20 - 30 billion 
E) $50 - 60 billion 
A) $5 - 6 billion 
B) $10 - 15 billion 
C) $15 - 20 billion 
D) $20 - 30 billion 
E) $50 - 60 billion

Question 14

What percent of all VC backed companies ever go public?

Accepted Answer

A) <1% 
B) 5% 
C) 10% 
D) 25% 
E) 55% 
A) <1% 
B) 5% 
C) 10% 
D) 25% 
E) 55%

Question 15

What is the underwriter's standard commission for taking a company public?

Accepted Answer

A) ~1.5% 
B) ~3% 
C) ~5% 
D) ~7% 
E) ~10% 
A) ~1.5% 
B) ~3% 
C) ~5% 
D) ~7% 
E) ~10%

Question 16

Who are informal investors and what are the benefits of attracting investments from them?

Accepted Answer

a.Informal investors are family and frie

Question 17

Buybacks of investors' equity is a common exit strategy for venture capital firms.

Accepted Answer

A) True 
 B)False

Question 18

Venture capitalists traditionally view the potential return of four times their investment within five years as the standard, minimum threshold for investment.

Accepted Answer

A) True 
 B)False

Question 19

Most angel investors prefer common stock that can later be converted into preferred stock.

Accepted Answer

A) True 
 B)False

Question 20

Explain some benefits and risks of bootstrapping a start-up for as long as possible?

Accepted Answer

a.The founders will gave generated more

What are the important aspects of the JOBS act to today's entrepreneurs?

Which factor is often more favorable in an acquisition, as compared to an IPO?

Why should you approach business angels? What are the ways of doing that?

Business angels are generally satisfied with a lower return than venture capitalists.

The equation for the value of a company with the earnings capitalization method is:

Which of the following about a potential venture capitalist should be cause for concern?

What are the advantages of having a venture capital backed company?

According to the chapter, the most precise way of valuing a business is asset-based valuation.

After the internet bubble burst, angel groups stopped investing in seed-stage companies.

The company planning a public offering must first select an investment bank.

After the IPO, the company has to file a registration statement with the SEC.

The liquidation value of a company is a strict valuation placed on an insolvent company by the courts during a bankruptcy proceeding.

How much do business angels invest annually in the US?

What percent of all VC backed companies ever go public?

What is the underwriter's standard commission for taking a company public?

Who are informal investors and what are the benefits of attracting investments from them?

Buybacks of investors' equity is a common exit strategy for venture capital firms.

Venture capitalists traditionally view the potential return of four times their investment within five years as the standard, minimum threshold for investment.

Most angel investors prefer common stock that can later be converted into preferred stock.

Explain some benefits and risks of bootstrapping a start-up for as long as possible?

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Building Your Pro Forma Financial Statements

Facing Entrepreneurial Ventures Worldwide

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship: an Overview

Filters

Exam 10: Raising Money for Starting and Growing Businesses

What are the important aspects of the JOBS act to today's entrepreneurs?

Which factor is often more favorable in an acquisition, as compared to an IPO?

Why should you approach business angels? What are the ways of doing that?

Business angels are generally satisfied with a lower return than venture capitalists.

The equation for the value of a company with the earnings capitalization method is:

Which of the following about a potential venture capitalist should be cause for concern?

What are the advantages of having a venture capital backed company?

According to the chapter, the most precise way of valuing a business is asset-based valuation.

After the internet bubble burst, angel groups stopped investing in seed-stage companies.

The company planning a public offering must first select an investment bank.

After the IPO, the company has to file a registration statement with the SEC.

The liquidation value of a company is a strict valuation placed on an insolvent company by the courts during a bankruptcy proceeding.

How much do business angels invest annually in the US?

What percent of all VC backed companies ever go public?

What is the underwriter's standard commission for taking a company public?

Who are informal investors and what are the benefits of attracting investments from them?

Buybacks of investors' equity is a common exit strategy for venture capital firms.

Venture capitalists traditionally view the potential return of four times their investment within five years as the standard, minimum threshold for investment.

Most angel investors prefer common stock that can later be converted into preferred stock.

Explain some benefits and risks of bootstrapping a start-up for as long as possible?

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Building Your Pro Forma Financial Statements

Facing Entrepreneurial Ventures Worldwide

Debt and Other Forms of Financing

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship: an Overview

Filters