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

Early-stage financing is usually the least costly type of financing to obtain.

The ________ is used to measure the short-term solvency of a venture.

The private equity market is composed of individuals,venture capital firms and private equity funds.

In order to increase their chances for success,an entrepreneur should approach all possible venture capital firms with proposals.

Dividing net profit by total assets shows a firm's:

The largest amount of venture-capital money raised was for later-stage and expansion-stage investments.

Two major disadvantages of going public are the increased reporting requirements and potential loss of control.

The longest stage of the venture capital process,at one to three months,is:

There is more risk involved in financing a business's early operations,therefore,higher rates of return are expected.

Most angel investors are individuals who accumulated their wealth through inheritance.

A publicly traded company needs to disclose to the public all material information regarding the company,its operations,and its management.

Under the ________,reporting requirements are increased and due dates of reports to the SEC are accelerated.

The quiet period is a 90-day period in going public when company information that will help increase stock price should and can be released.

Identify and briefly describe,in order,each of the four major stages of the venture capital process.

There are only two types of crowdfunding: reward-based and equity crowdfunding.

Describe and compare early-stage financing to expansion or development financing.Who are the usual investors in each of the two stages

The waiting period is the time between:

Only individuals may invest in venture-capital limited partnerships.

The valuation approach that gives the lowest value of the business is:

Which of the following is not part of the private equity market