ENTR 310 part 2 fully
solved & updated
2025-2026(100%
accuracy)
the general rule of thumb for new startups is to ___
a. immediately line up one commited investor with deep pockets
b. avoid seeking investment for as long as possible
c. try to get as much funding as possible as soon as profitable
d. seek many small investments right away - answer b. avoid seeking
investment for as long as possible
In short, VCs look for_____, big markets, and innovative ideas.
a.Early state funding
b. great teams
c.local companies
d. midsize companies - answer b. great teams
This allows the stock to be purchased on the open market.
A. Exit plans B. IPO C. Liquidation D. IHOP - answer B.IPO
IPOs, mergers and acquisitions, and buybacks are all types of ____
strategies
a. growth b. exit c.Investment D. Retrenchment - answer b. exit
, By giving away equity in your business, do you have ____ over your
decisions in the business.
A. Less control B. More control C. None of these D. The same amount of
control - answer A. less control
Venture capitalist usually look for a return ___times their investment
in___years
A. 4;2 B. 10;5 C. 2;1 D. 5;10 - answer B. 10;5
Angel investors are primarily motivated to invest in order to:
A. earn a good reputation B. Earn money C. Learn a business D. Promote
goodwill - answer b. earn money
A short-term loan that can be turned into equity when future financing is
issued is called:
A. Primary debt b. Convertible debt C. Unsecured debt D. First issue debt -
answer b. convertible debt
When investors value start-ups, they want to know what sort of
information?
A. All of these B. What's the entrepreneurs experience and what are the
teams past successes? C. How many people use the product or service D.
Does the business have a distribution channel in place? - answer A. all of
these
These are individual investors who use their own money to provide funds
to start-ups
A. Angel investors B. Wealth investors C. Virtual investors D. Venture
capitalists - answer A. angel investors
The sale of shares of stock in exchange for cash is:
A. External financing B .debt financing c. Equity financing D. Bank
financing - answer c. equity financing
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