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

In 2011 which region received the highest level of venture capital investment?

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

Angel investors usually expect to play an active role in the businesses they invest in.

Business angels are members of a professionally managed group of wealthy individuals who efficiently distribute risk capital.

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

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

Which section of the business plan is used for initial screening and provides the starting point for the venture-capital process?

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

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

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

Business angels usually find their deals through:

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

The informal risk-capital market is made up of:

The waiting period is the time between:

Venture capital firms expect returns in the range of:

In regards to a public offering,once the registration statement has been filed,the SEC generally takes _________ to declare IPO registration effective:

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

The three main advantages of going public are obtaining new capital,realizing an enhanced valuation,and enhancing the company's ability to obtain future funds.

Discuss the informal risk-capital market and key characteristics of business angels.

The informal investment market contains the smallest pool of risk capital in the U.S.