BUS 463 Quiz 9 Answers (Strayer)

BUS 463 Quiz 9 Answers (Strayer)

BUS 463 Quiz 9 Answers (StrayerCompanies that are not heavily regulated and that base their financial decisions on the quality of the assets of the business are ____.

____ normally invest between $10,000 and $500,000 and usually focus on first-stage financing¾that is, startup funding or funding of firms younger than five years.


____ is/are a way of raising capital from private investors by selling securities in a private corporation or partnership.


Most entrepreneurs start their ventures with their own financial resources, which can include all the following except ____.


Private investors, called angels, are ____.


Startup funds typically come from ____.


In the first stage of investment, seed funding will usually come from ____.


In the third stage of investment, the company will begin to experience rapid growth that calls for large sums of capital and perhaps a different type of money, termed ____, to provide the funds required for an initial public offering.


In the R&D ____, the startup acts as a general partner to develop the technology and then structures a license agreement with the R&D partner whereby the entrepreneur can use the technology to develop other products.


The ____ of startup ventures depends heavily on the entrepreneur’s personal resources


State laws that protect investors from fraud are known by the term ____.


All of the following except ____ resources are required resources at various milestones in the company’s growth


Entrepreneurs can access ____ through universities that act as conduits for matching entrepreneurs with investors.


Taking on outside investment capital means that the entrepreneur must plan for some type of ____ so that investors can cash out of the business and receive a return on their investment.


By the second stage on investment, known as ____, the business is requiring capital to grow on the basis of a proven business model.


The term ____ refers to tangible choices such as—in the case of a new venture—investing in research and development for new technology.


The price at which a willing seller would sell and a willing buyer would buy in an arm’s-length transaction is the ____ value.


VC funding is usually ____.


Venture capital firms in an early-stage investment characteristically demand a higher rate of return, as much as ____ percent or more annual cash-on-cash return, whereas a later-stage investment demands a lower rate of return, perhaps ____ percent annually.


The value derived by assuming the sale of all assets and calculating the amount that could be recovered from doing so is the ____ value.


Which industries have the highest venture capital investment?


A form of startup capital managed by professionals is ____.


A VC may request a ____, a penalty requiring founders to give up some of their stock to the VC if the company does not achieve its projected performance goals.


____ tend to favor the types of businesses where the investment required is relatively small and it’s easy to determine whether the business will be a success within six months to a year.


The ____ method is probably the technique most commonly used to account for the going-concern value of a business, but it has problems as well.


____ take an equity position through ownership of stock in the company.


____ from lawyers, accountants, consultants, and investment bankers are essentially a promise not to charge the full fee if an IPO fails.


Any investment deal includes all of the following components, except ____.


 

A ____, or prospectus, discusses all the potential risks of investing in the initial public offering