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

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

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B

When private individual investors put money into a fund,which usually has a manager,then this becomes:

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

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________ is the increase in value of the organization during a specific period of time.

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The deregulatory legislation that allows companies to be more active in their intent to raise money through crowdfunding was the:

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

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In the valuation of Internet companies:

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The return on investment ratio measures the ability of the firm to repay long-term debt using current assets.

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

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With the enactment of the Sarbanes-Oxley Act in 2002:

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

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

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

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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.

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Early stage financing is typically:

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The ________ is calculated by dividing total liabilities by total assets.

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To attract venture capital funding,an investment must have significant capital appreciation potential.

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Seed capital is an example of expansion or development financing.

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

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The best source of funds for first-stage financing is the:

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