SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
Venture Capital
Start Test
Study First
Subject
:
industries
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. An investment vehicle designed to invest in a diversified group of investment funds.
Preferred Stock
fund of funds
Restricted Shares
Deal Structure
2. Shares acquired in a private placement are considered restricted shares and may not be sold in a public offering absent registration - or after an appropriate holding period has expired. Non-affiliates must wait one year after purchasing the shares
Restricted Shares
Liquidity Event
Common Stock
Common Stock
3. These are government-chartered venture firms that can invest only in companies that are at least 51 percent owned by members of a minority group or person recognized by the rules that govern this to be economically disadvantaged.
Due Diligence
portfolio compaay
capital gain
minority enterprise small business investment companies (MESBICS)
4. Selling an interest in your business to an outside party to raise money.
closing
equity financing
Capital
leverage buy-out(LBO)
5. The rate of return or profit that an investment is expected to earn.
Internal Rate of Return
limited partnerships
Anti-Dilution Protections
exit
6. The period an investor must wait before selling or trading company shares subsequent to an exit. Usually in an initial public offering this period is determined by the underwriters.
Term Sheet
fund of funds
Restricted Stock
lock-up period
7. The internal rate of return on an investment.
acquisition
Liquidation Preference
return on investment (ROI)
institutional investors
8. A financial institution specializing in the provision of equity and other forms of long-term capital to enterprises - usually to firms with a limited track record but with the expectation of substantial growth. The venture capitalist may provide bot
management buy-out (MBO)
raising capital
Liquidation
Venture Capitalist
9. A subsequent investment made by an investor who has made a previous investment in the company - generally a later stage investment in comparison to the initial investments.
IRR
follow-on
Restricted Shares
capital gain
10. First to absorb losses. Represents common shareholders' investment in a company. It includes common stock value - retained earnings - capital surplus.
Post-money
IPO(initial public offerings)
Common Equity
Common Stock
11. The first round of stock offered during the seed or early stage round by a portfolio company to the venture investor or fund. This stock is convertible into common stock in certain cases such as an IPO or the sale of the company. Later rounds of pref
series a preferred stock
raising capital
Adjusted Book Value
Anti-Dilution Protections
12. The way you buy stock
bridge loans
fund of funds
corporate venturing
PPM
13. A limited amount of equity or short-term debt financing typically raised within 6-18 months of an anticipated public offering or private placement meant to 'bridge' a company to the next round of financing.
benchmarks
Venture Capitalist
Restricted Stock
Bridge Financing
14. An extremely concise presentation of an entrepreneur's idea - business model - company solution - marketing strategy - and competition delivered to potential investors. Should not last more than a few minutes - or the duration of an elevator rid
institutional investors
Outstanding Stock
Common Stock
Elevator Pitch
15. The method by which an investor will realize an investment.
Preferred Stock
exit route
Initial Public Offering
equity offerings
16. A non-binding agreement setting forth the basic terms and conditions under which an investment will be made. This is a template that is used to develop more detailed legal documents.
term sheet
Anti-Dilution Protections
exit
management buy-out (MBO)
17. A brief statement covering the main points that includes a discussion of management - profits - strategic position - and exit plan
Business Summary
Subordinated Debt
Qualified IPO
Seed Money
18. It refers mainly to insurance companies - pension funds and investment companies collecting savings and supplying funds to markets - but also to other types of institutional wealth (e.g. endowments funds - foundations etc.).
angel investors
management buy-out (MBO)
leverage buy-out(LBO)
institutional investors
19. This refers to obtaining capital from investors or venture capital sources.
Dividends
Initial Public Offering
raising capital
Seed Money
20. A security with limits on its transferability. Usually issued in connection with a private placement
Restricted Stock
Venture Capital Financing
term sheet
Liquidation
21. The practice of a large company taking a minority equity position in a smaller company in a related field.
Market Capitalization
Dividends
corporate venturing
term sheet
22. An investment in a startup business that is perceived to have excellent growth prospects but does not have access to capital markets. Type of financing sought by early-stage companies seeking to grow rapidly.
Dividends
capital under management
Venture Capital Financing
Liquidity Event
23. The equity ownership in a LLC. May be either common or preferred. Partnership agreement
Membership Interest
General Partner (GP)
debt financing
IPO (Initial Public Offering)
24. Issue of shares of a company to the public by the company (directly) for the first time.
seed capital
IPO(initial public offerings)
term sheet
Closing
25. Money used to purchase equity-based interest in a new or existing company. A venture capitalists return usually comes from preferred stock - a share of profits - royalties or capital appreciation of common stock. Most venture capitalists look for c
Preferred Stock
Internal Rate of Return
liquidation
seed capital
26. A class of capital stock that may pay dividends at a specified rate and that has priority over common stock in the payment of dividends and the liquidation of assets. Many venture capital investments use preferred stock as their investment vehicle. T
capital gain
series a preferred stock
Preferred Stock
Liquidation Preference
27. The sale or exchange of a significant amount of company ownership for cash - debt - or equity of another company.
mezzanine financing
exit
portfolio compaay
Restricted Shares
28. Also called a 'Cap Table' - this is a table showing the total amount of the various securities issued by a firm. This typically includes the amount of investment obtained from each source and the securities distributed -- e.g. common and preferred s
Limited Partner
turnaround
Capitalization Table
Book Value
29. The investor who leads a group of investors into an investment. Usually one venture capitalist will be this when a group of venture capitalists invest in a single business.
secondary public offering
lead investor
Preferred Stock
Elevator Pitch
30. Cash - stock and other property by the company to the investor in the investor's capacity as a stock - payment to owner for their appreciation
Deal Structure
Capitalization Table
Dividends
IPO(initial public offerings)
31. Date the LP's subscription is effective and they become partner
Closing
Equity
liquidation
buyout
32. Individuals that provide venture capital to seed or early stage companies. They can usually add value through their contracts and expertise.
mezzanine financing
angel investors
Capitalization Table
Internal Rate of Return
33. Force sell of stock at a predetermined price. The rights by which the investor's preferred stock or subordinated debt 'converts' into common stock
Conversion Rights
Capital Call 'Drawdown'
small business investment companies (SBIC)
Post-Money Valuation
34. Funds provided to enable operating management to acquire a product line or business - which may be at any stage of development - from either a public or private company.
mezzanine financing
Business Summary
management buy-out (MBO)
venture capital
35. The investigation and evaluation of a management team's characteristics - investment philosophy - and terms and conditions prior to committing capital to the fund.
exit
Business Summary
liquidation
due diligence
36. The sale of the assets of a portfolio company to one or more acquirers when venture capital investors receive some of the proceeds of the sale.
capital gain
going private
equity financing
liquidation
37. The equity of the company and some types of debts (subordinated debt) but generally not senior secured debt (bank loan)
Equity
Capital
Preferred Stock
small business investment companies (SBIC)
38. Assets are subject to double taxation - Unlimited number of investors
Closing
C Corporation
angel investors
liquidation
39. A unit of ownership of a corporation. In the case of a public company - the stock is traded between investors on various exchanges. Owners of common stock are typically entitled to vote on the selection of directors and other important events and in
Common Stock
institutional investors
Dividends
Business Summary
40. The amount to be paid when the company is liquidated or sold before any payments are made lower classes of investors. Not everyone gets paid equally
Equity
Preferred Stock
Confidentiality
Liquidation Preference
41. How you get out
Angel Financing
institutional investors
Liquidation Preference
seed capital
42. When an investor sells a stock - bond or mutual fund at a higher price than he or she paid for it.
liquidation
capital gain
Warrants
equity financing
43. The amount of common shares of a corporation which are in the hands of investors. It is equal to the amount of issued shares less treasury stock.
Liquidation Preference
going private
Outstanding Stock
equity offerings
44. Cannot get other outside investors-No Shop
Warrants
secondary purchase
Book Value
No Shop/Confidentiality
45. The reorganization of a company's capital structure. A company may seek to save on taxes by replacing preferred stock with bonds in order to gain interest deductibility.
Anti-Dilution Protections
angel investors
recapitalization
Preferred Stock
46. These are performance goals against which a company's success is measured. Often - they are used by investors to help determine whether a company will receive additional funding or whether management will receive extra stock. Sometimes management wi
going private
liquidation
lock-up period
benchmarks
47. Money used to purchase equity-based interest in a new or existing company. A venture capitalists return usually comes from preferred stock - a share of profits - royalties or capital appreciation of common stock. Most venture capitalists look for c
IPO (Initial Public Offering)
venture capital
Stock Price Agreement
lock-up period
48. Compound internal rate of return.
NDA (Non-disclosure agreement)
IRR
Term Sheet
lock-up period
49. Money that business owners must pay back with interest. There are myriad types of these - from simple commercial loans to bridge/swing loans in which a lender makes a short-term loan in anticipation of equity financing at a later stage in the develo
Pre-Money Valuation
follow-on
debt financing
Pre-money valuation
50. An Agreement made between the investor and the company defining the rights and obligations of the parties involved. The process by which one arrives at the final term and conditions of the investment.
Deal Structure
Equity
Series A Preferred Stock
private equity
Sorry!:) No result found.
Can you answer 50 questions in 15 minutes?
Let me suggest you:
Browse all subjects
Browse all tests
Most popular tests
Major Subjects
Tests & Exams
AP
CLEP
DSST
GRE
SAT
GMAT
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests