Exam 9: Facing Entrepreneurial Ventures Worldwide

Japan has almost two-thirds of the world's total venture capital.

For all the GEM nations combined, generally speaking, the amount needed to start a business is highest in the business services sector and lowest in the consumer-oriented sector.

The formal venture capital industry was born in Massachusetts at the end of WWII when a group of investors were inspired by General Georges Doriot.

Which of the following categories of informal investors expects the highest return on his or her investment, since it is made in a more detached manner?

The median expected payback time of an investment is one year, and the median amount returned is two times the original investment.

It is unreasonable to hypothesize that the higher the rate of taxation, the less likely that a person will have discretionary money to invest.

It is very difficult for entrepreneurs to raise debt financing from conventional banks because they require as many as three years of actual-not projected-financial statements and assets that adequately cover the loan.

Using GEM data for the United States, we can point out that the informal investor prevalence rate among entrepreneurs is much higher than the rate among non-entrepreneurs.

Describe the four ways of classifying ventures, based on their degree of innovation and their rate of growth.

The businesses that need the most startup capital are those created with the intent to grow and hire employees.

In contrast to informal investments, classic venture capital invests only to companies with a ______.

What subset of informal investor is relatively sophisticated and invests primarily in glamorous companies?

The three fundamental elements of an entrepreneurial society are:

It is generally agreed that wealth-substitution is a powerful tool in the fight to reduce poverty in less-developed nations.

The term, "business angels," strictly refers to just former entrepreneurs who invest some of their wealth in seed and early stage businesses.

Who comprises the "4Fs"?

What is the relationship between informal investing and entrepreneurship?

Among the G7 nations, the United States has the highest prevalence rate (3.8%)and the United Kingdom has the lowest (1.1%).These two nations also have the highest and lowest TEA (Total Entrepreneurial Activity)rates; from this we can conclude that the prevalence rate for informal investors and the TEA rates among all nations are perfectly correlated.

From the following sources of funding, which contributes the most money to classic venture capital?

The split of the percent of entrepreneurs who expect to profit from their ventures and the percent of those that do not is almost ________ of the split among informal investors.