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

Most venture capital deals have been made in California and Massachusetts.

Venture capitalists are typically located in all of the following areas except:

The earnings approach is the most widely used method of valuing a company.

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

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

The informal risk-capital market is made up of:

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

Private venture capital firms use both state and federal grant money to invest in other businesses.

Going public:

In most cases,the venture capitalist:

In 2014 which region received the highest level of venture capital investment?

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

Business angels typically invest what amount in the businesses they finance?

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

The ____ is calculated by dividing liabilities by total assets.

Which factor in valuing your company is the most important?

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

Which of the methods of valuation of a company provides the potential investor with the best estimate of the probable return on investment?

Venture capital firms prefer to invest in:

List three reasons why a Business Angel may reject a proposal.