Exam 10: Financing Entrepreneurial Ventures Worldwide

For all the GEM nations, the prevalence rate of informal investors is positively correlated with social security taxes and with taxes on capital and property.

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.

In every nation, there is far more informal than formal investment from venture capitalists.

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.

Who comprises the "4Fs"?

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.

The companies are often up and running before ____ is raised.

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

From 1970 to 2014, how many companies did the venture capital industry invest in?

The highest return on a venture capital investment is produced when the company has a management buyout.

Eighty percent of the venture capital invested in the United States finances hi-tech companies; by contrast only 29 percent of the venture capital invested in other G7 nations is in hi-tech companies.

Usually, businesses started by men require less capital than those started by women.

According to the GEM study, entrepreneurs contribute about ______ of the capital needed to launch their ventures.

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

One of the principal reasons for the failure of classic venture capital in Europe at the start of the 1990s was the failure of the secondary markets after the general stock market crash of October 1987.

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

The amount of capital that entrepreneurs need to start their ventures depends mainly on______.

Microfinancing is not available in very many nations.

Venture capital funds are limited partnerships that typically begin with how long of a term?

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.