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entrepreneurship exam 3 ch 12 questions with correct answers
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entrepreneurship exam 3 ch 12 questions with correct answers
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entrepreneurship exam 3 ch 12Match the primary stages of the venture capital process
First stage - correct answer ✔✔Involves evaluation of the company's business plan
match the primary stages of the venture capital process
Second Stage - correct answer ✔✔Involves discussions between the entrepreneur and the venture
capitalist to agree on general terms
Match the primary stages of the venture capital process
third stage - correct answer ✔✔Involves a detailed review of the company's history, its business plan, its
financial history, and target market customers
Match the primary stages of the venture capital process
Fourth stage - correct answer ✔✔Involves the preparation of a comprehensive, internal investment
memorandum
Informal investors or angels reject investment opportunities in a startup when there is - correct answer
✔✔an inadequate risk/return ratio
The ______ indicates a venture's ability to translate sales into profits. - correct answer ✔✔net profit
margin
.The ______ _______ evaluates the worth of a company by taking into account its present and future
earnings. - correct answer ✔✔Earnings approach
Which of the following is the need of the investors providing funds to companies? - correct answer
✔✔The required rate of return
Match the primary stages of the venture capital process (in the left column) with their features
, First stage Choice- - correct answer ✔✔The venture capitalist analyzes the economy of the industry and
evaluates whether the company is in the industry specified for investment.
Match the primary stages of the venture capital process (in the left column) with their features
Second stage - correct answer ✔✔The venture capitalist seeks a basic understanding of the principal
terms of the deal.
Match the primary stages of the venture capital process (in the left column) with their features
Third stage - correct answer ✔✔It is the longest stage of the process, involving between one to three
months.
Match the primary stages of the venture capital process (in the left column) with their features
Fourth stage - - correct answer ✔✔A document detailing the venture capitalist's findings and the terms
and conditions of the investment transaction is prepared.
In the context of startups, identify the true statements about informal investors, or angels, in the United
States. - correct answer ✔✔-they usually invest in firms that are within one day's travel.
-The investment made by informal investors in a firm ranges from $100,000 to $500,000.
In the context of investment in ventures by venture capitalists, the return on investment measures the
_____. - correct answer ✔✔ability of a venture to manage its total investment in assets
The most widely used method of valuing a company is the______, as it provides the potential investor
with the best estimate of the probable return on investment. - correct answer ✔✔Earnings approach
The form of the transaction when money is obtained by a company is referred to as ____. - correct
answer ✔✔Deal structure
Informal investors or angels reject investment opportunities in a startup when there is ___. - correct
answer ✔✔an inadequate risk/return ratio
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