Exam 12: Informal Risk Capital, Venture Capital, and Going Public

In the venture-capital process,________ is(are)absolutely essential for preliminary screening.

When private individual investors put money into a fund,which usually has a manager,then this becomes:

In private venture-capital firms,limited partners provide the funding and the general partner manages the fund.

________ is the increase in value of the organization during a specific period of time.

The deregulatory legislation that allows companies to be more active in their intent to raise money through crowdfunding was the:

The valuation approach that gives the lowest value of the business is the earnings approach.

In the valuation of Internet companies:

The return on investment ratio measures the ability of the firm to repay long-term debt using current assets.

The inventory turnover ratio measures the efficiency of the venture in managing its inventory.

With the enactment of the Sarbanes-Oxley Act in 2002:

The future earnings capacity of the company is the most important factor in valuation.

The present value of future cash flow method of valuation considers the firm's cash flow in relation to the time value of money.

The ________ is calculated by dividing accounts receivable by average daily sales.

In most of the significant public offerings,the company technically sells the shares to the underwriters,who then resell the shares to the public investors.

Early stage financing is typically:

The ________ is calculated by dividing total liabilities by total assets.

To attract venture capital funding,an investment must have significant capital appreciation potential.

Seed capital is an example of expansion or development financing.

Which of the following would not typically be part of a private venture capital fund

The best source of funds for first-stage financing is the: