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

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

Business angels usually find their deals through:

What are the three types of risk capital markets?

An extension of the earnings approach is the book value method.

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.

In 2011 venture capital deals were concentrated in the three areas of software,biotechnology and industrial/energy.

The underwriter is of critical importance in establishing the initial price for the stock of the company.

The top area of venture capital investment in 2011 was in:

Balance sheet items are carried at cost,a good indicator of fair market value in valuing a company.

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

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

After the completion of the preliminary preparation,the first public offering normally requires three to six months to prepare,print,and file the registration statement with the SEC.

Angel investors typically invest between $500,000-$1,000,000.

Using the __________ method of evaluating the firm,cash flow is adjusted for the time value of money.

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

Replacement value is used only by insurance companies and in very unique circumstances.

Which type of risk-capital market is available as a funding source only for high-potential ventures?

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

Financial ratios are control mechanisms to test the financial strengths of a new venture.

_______________ is the form of the transaction when money is obtained by a company.