You passed this Milestone
21 questions were answered correctly.
1 question was answered incorrectly.
1 question was skipped. These were marked incorrect.
1
Which of the following is a disadvantage of venture capital?
Venture capital investors may place restrictions on company operations, such
as setting salary caps.
Venture capitalists only receive a return on their investment if the company
is eventually purchased for a large sum.
Receiving venture capital can send a message to other investors that your
company is unlikely to succeed.
Companies that receive venture capital are prohibited from issuing an IPO
once they become successful.
CONCEPT
Venture Capital
2
Determine whether the following description is true of a capital
lease, an operating lease, neither or both.
"A method of financing an asset like equipment without purchasing it
outright with equity"
Capital lease
Operating lease
, Both
Neither
CONCEPT
Leasing
3
Which of the following is an example of a market risk for a company
that manufactures automobiles?
A competitor that offers a similar line of cars with comparable quality at
lower prices
Damage to completed cars being transported to a buyer
Being suddenly unable to source a critical component of the automobile
A failure in the company's accounts receivable process
CONCEPT
Risk and Capital Budgeting
4
According to the residual dividend model, what takes priority over
distributing dividends?
Financing planned projects
Establishing a target payout ratio
Paying off debt
Increasing share price
CONCEPT
Setting the Dividend
5
21 questions were answered correctly.
1 question was answered incorrectly.
1 question was skipped. These were marked incorrect.
1
Which of the following is a disadvantage of venture capital?
Venture capital investors may place restrictions on company operations, such
as setting salary caps.
Venture capitalists only receive a return on their investment if the company
is eventually purchased for a large sum.
Receiving venture capital can send a message to other investors that your
company is unlikely to succeed.
Companies that receive venture capital are prohibited from issuing an IPO
once they become successful.
CONCEPT
Venture Capital
2
Determine whether the following description is true of a capital
lease, an operating lease, neither or both.
"A method of financing an asset like equipment without purchasing it
outright with equity"
Capital lease
Operating lease
, Both
Neither
CONCEPT
Leasing
3
Which of the following is an example of a market risk for a company
that manufactures automobiles?
A competitor that offers a similar line of cars with comparable quality at
lower prices
Damage to completed cars being transported to a buyer
Being suddenly unable to source a critical component of the automobile
A failure in the company's accounts receivable process
CONCEPT
Risk and Capital Budgeting
4
According to the residual dividend model, what takes priority over
distributing dividends?
Financing planned projects
Establishing a target payout ratio
Paying off debt
Increasing share price
CONCEPT
Setting the Dividend
5
