ENT3003 Exam 4 Review ACTUAL UPDATED QUESTIONS AND CORRECT
ANSWERS
A venture capitalist invests his or her own money into False
startups.
What is the stage of financing in which the money is startup
provided to entrepreneurs to enable them to implement
the idea by funding product research and development?
, What is the stage of financing in which small or modest seed-stage
amounts of capital are provided to entrepreneurs to
prove a concept?
The financing funds provided to cover expenses bridge
associated with the initial public offering are _.
What is the sale of shares of stock in exchange for cash? equity financing
Why do Shark Tank investors talk about pre-money It helps them decide how much ownership to take with their offer.
valuation?
Typically entrepreneurs value their companies based potential in chosen market
upon ___ _.
Investors do not expect the entrepreneurs to have a False
distribution channel set up.
One of the important factors to an investor is knowing the entrepreneur's experience and team's successes
______.
Why is it essential for an entrepreneur to know the value to know how much equity to give up
of a company prior to seeing investors?
What is an advantage of convertible debt? Majority ownership remains with the funders.
What does research show about women investors? They spot more market opportunities.
Once a company starts growing and showing potential, equity
entrepreneurs look for _ financing.
The venture capital industry received a boost when the small business investment companies were allowed to invest in startups
Small Business Investment Act of 1958 allowed _.
Why do angel investors not carry out as much due general lack of information
diligence as VCs?
If an entrepreneur is asking for $150,000 in investment for True
10% of the company, the post-money valuation is $1.5
million.
What type of angel is one who has already started their entrepreneurial
own business?
An important factor in thinking about seeking investment True
dollars is to find investors who are suitable for the stage
of the company.
Most entrepreneurs manage to make money and maintain False
full control of their businesses.
ANSWERS
A venture capitalist invests his or her own money into False
startups.
What is the stage of financing in which the money is startup
provided to entrepreneurs to enable them to implement
the idea by funding product research and development?
, What is the stage of financing in which small or modest seed-stage
amounts of capital are provided to entrepreneurs to
prove a concept?
The financing funds provided to cover expenses bridge
associated with the initial public offering are _.
What is the sale of shares of stock in exchange for cash? equity financing
Why do Shark Tank investors talk about pre-money It helps them decide how much ownership to take with their offer.
valuation?
Typically entrepreneurs value their companies based potential in chosen market
upon ___ _.
Investors do not expect the entrepreneurs to have a False
distribution channel set up.
One of the important factors to an investor is knowing the entrepreneur's experience and team's successes
______.
Why is it essential for an entrepreneur to know the value to know how much equity to give up
of a company prior to seeing investors?
What is an advantage of convertible debt? Majority ownership remains with the funders.
What does research show about women investors? They spot more market opportunities.
Once a company starts growing and showing potential, equity
entrepreneurs look for _ financing.
The venture capital industry received a boost when the small business investment companies were allowed to invest in startups
Small Business Investment Act of 1958 allowed _.
Why do angel investors not carry out as much due general lack of information
diligence as VCs?
If an entrepreneur is asking for $150,000 in investment for True
10% of the company, the post-money valuation is $1.5
million.
What type of angel is one who has already started their entrepreneurial
own business?
An important factor in thinking about seeking investment True
dollars is to find investors who are suitable for the stage
of the company.
Most entrepreneurs manage to make money and maintain False
full control of their businesses.
