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 of f debt
•
Increasing share price
CONCEPT
Setting the Dividend
5
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 of f debt
•
Increasing share price
CONCEPT
Setting the Dividend
5
