8.2 - Chapter 15 How Corporations Issue Securities Answer...

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Chapter 15 How Corporations Issue SecuritiesAnswer KeyMultiple Choice Questions1.A business plan generally contains:I) a description of the proposed products;II) a description of the potential market;III) a description of the underlying technology;IV) a description of resources neededA.onlyB.I and IIonlyC.II and IIIonlyD.I, II, III, andIVI
Type: Easy2.Equity investment in start-up private companies is called:
Type: Easy
3.The market for venture capital refers to the:I) private financial marketplace for providing equity investment for small,start-up firms;II) bond market;III) market for providing equity to well-established firms
Type: Easy4.Which of the following statements is generally true of venture capital (VC)firms?
Type: Medium5.Arrange the following in chronological order for a typical start-up firm:I) VC financing; II) mezzanine financing; III) stage 1, 2, 3, 4, etc., financing;IV) IPOA.I, II, III, andIVB.I, III, II, andIVC.IV, I, II, andIIID.III, I, II, andIVType: Difficult
6.Venture capitalists provide start-up companies:A.all the money they will need upfront.B.enough money at each stage so that they can reach the next stage ormajor checkpoint.C.assistance in managing the initial publicoffering (IPO).D.funding intended to buy-out the company'sfounders.
Type: Medium7.Wealthy individuals who provide equity investment for new firms are called:I) white knights; II) red herrings; III) angel investorsI
Type: Easy8.Generally, venture capital funds are organized as:I
Type: Medium
9.Venture capital investment was highest in the year:
Type: Easy10.Large technology firms like Intel, Johnson and Johnson, and SunMicrosystems that provide equity capital to new innovative companies arecalled:A.angelinvestors.B.corporateventurers.C.whiteknights.D.mezzaninefinanciers.
Type: Medium

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Term
Three
Professor
fewfqwef
Tags
Corporate Finance, Venture Capital, Securities and Exchange Commission

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