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

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.

The longest stage of the venture capital process,at 1-3 months,is:

Business angels find many of their deals through friends,investment bankers,business brokers and other business associates.

Venture capitalists tend to avoid investment proposals that are referred from lawyers and accountants.

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

The least liquid current asset,_____,is eliminated when calculating the acid test ratio.

Which of the following was not one of the top industries where venture capital was invested in 2011?

Angel investors have a longer investment horizon than venture capitalists do.

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

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

Going public:

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

The detailed review of a potential venture capital deal is called diligent research.

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

In most cases,the venture capitalist:

The preliminary prospectus is also called as:

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

For the venture capitalist,the executive summary is an important part of the business plan.

Angel investors typically finance firms that are close to their homes.

The largest percentage of venture capital funding is invested in: