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. The event in which the company is liquidated or sold (bankruptcy or sale to a public company)
syndication
Stock Price Agreement
Liquidity Event
capital gain
2. The total value of the company immediately prior to the latest round of financing
Initial Public Offering
Lead Investor
Pre-money valuation
syndication
3. No double tax - Limited number of investors
Cash-out election
Common Stock
acquisition
S Corporation
4. 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
fund of funds
Preferred Stock
Capital Commitment
recapitalization
5. Financing for a company expecting to go public usually within 6-12 months; usually so structured to be repaid from proceeds of a public offerings - or to establish floor price for public offer.
Common Stock
portfolio compaay
Post-money
mezzanine financing
6. Term sheet for equity offering
No Shop/Confidentiality
portfolio compaay
Term Sheet
liquidation
7. The method by which an investor will realize an investment.
Post-money
Private Equity
exit route
angel investors
8. Issue of shares of a company to the public by the company (directly) for the first time.
IPO(initial public offerings)
corporate venturing
Post-Money Valuation
NDA (Non-disclosure agreement)
9. The legal structure used by most venture and private equity funds. Usually fixed life investment vehicles. The general partner or management firm manages the partnership using policy laid down in a partnership agreement. The agreement also covers -
equity offerings
secondary purchase
minority enterprise small business investment companies (MESBICS)
limited partnerships
10. Force sell of stock at a predetermined price. The rights by which the investor's preferred stock or subordinated debt 'converts' into common stock
Venture Capitalist
Conversion Rights
equity financing
executive summary
11. These are lending and investment firms that are licensed by the federal government. The licensing enables them to borrow from the federal government to supplement the private funds of their investors. Some of these funds engage only in making loans t
Anti-Dilution Protections
Common Stock
small business investment companies (SBIC)
series a preferred stock
12. First to absorb losses. Represents common shareholders' investment in a company. It includes common stock value - retained earnings - capital surplus.
Venture Capitalist
Common Equity
Corporation (Limited liability and taxation)
Equity
13. The sale or exchange of a significant amount of company ownership for cash - debt - or equity of another company.
Bridge Financing
exit
management buy-out (MBO)
Outstanding Stock
14. Purchase of a business by an outside team of managers who have found financial backers and plan to manage the business actively themselves.
management buy-in (MBI)
angel investors
Pre-Money Valuation
Outstanding Stock
15. 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
Outstanding Stock
executive summary
liquidation
seed capital
16. Equity securities of companies that have not 'gone public' (are not listed on a public exchange). Private equities are generally illiquid and thought of as a long-term investment. As they are not listed on an exchange - any investor wishing to sell
limited partnerships
Private Equity
benchmarks
secondary purchase
17. The total dollar value of all outstanding shares. Computed as shares multiplied by current price per share. Prior to an IPO - market capitalization is arrived at by estimating a company's future growth and by comparing a company with similar public
Elevator Pitch
seed capital
Market Capitalization
minority enterprise small business investment companies (MESBICS)
18. How fast you can turn it into cash - termination of a business operation by using its assets to discharge its liabilities
NDA (Non-disclosure agreement)
seed capital
Venture Capital Financing
Liquidation
19. Cannot get other outside investors-No Shop
Book Value
Common Stock
No Shop/Confidentiality
capital gain
20. An IPO that has met certain
Common Stock
Limited Partnership Agreement
minority enterprise small business investment companies (MESBICS)
Qualified IPO
21. 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
fund of funds
secondary purchase
Preferred Stock
22. The party that manages a limited partnership and is liable for the debts of the company
General Partner (GP)
Term Sheet
Conversion Rights
Capital
23. An acquisition of a business using mostly debt and a small amount of equity. The debt is secured by the assets of the business.
Warrants
Membership Interest
leverage buy-out(LBO)
Subordinated Debt
24. Date the LP's subscription is effective and they become partner
Series A Preferred Stock
Closing
Dividends
private equity
25. Unsecured debt - junior to senior debt (bank loan) and is senior to common stock and preferred. Gets paid last
PPM
management buy-out (MBO)
Subordinated Debt
Book Value
26. The rate at which a company expends net cash over a certain period - usually a month.
Burn Rate
series a preferred stock
PPM
IPO(initial public offerings)
27. 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.).
Adjusted Book Value
institutional investors
limited partnerships
Venture Capital Financing
28. The equity ownership in a LLC. May be either common or preferred. Partnership agreement
Private Equity
Membership Interest
Venture Capital Financing
Lead Investor
29. How much the company is worth before an investment
PPM
Pre-Money Valuation
Venture Capitalist
Closing
30. 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.
Post-money
lead investor
Outstanding Stock
Deal Structure
31. The value at which an asset is carried on a balance sheet (the cost of the item)
minority enterprise small business investment companies (MESBICS)
going private
Outstanding Stock
Book Value
32. 'IOU' for stock - form of equity similar to option allowing the Warrant holder to exercise the Warrant and obtain equity
Warrants
corporate venturing
Liquidation Preference
fund of funds
33. Individuals that provide venture capital to seed or early stage companies. They can usually add value through their contracts and expertise.
angel investors
Confidentiality
Qualified IPO
C Corporation
34. These are short-term financing agreements that fund a company's operation until it can arrange a more comprehensive longer-term financing. The need for these arises when a company runs out of cash before it can obtain more capital investment though l
bridge loans
Preferred Stock
benchmarks
Bootstrapping
35. The valuation of a company prior to a round of investment. This amount is determined by using various calculation models - such as discounted P/E ratios multiplied by periodic earnings or a multiple times a future cash flow discounted to a present c
Pre-Money Valuation
capital under management
Capital Call 'Drawdown'
Initial Public Offering
36. 'I will buy stock at price we negotiate'
Book Value
No Shop/Confidentiality
Stock Price Agreement
closing
37. Document between general and limited partnership of each fund spells out details of the partnership.
executive summary
Equity
Limited Partnership Agreement
Cash-out election
38. Are the means by which an investor preserves its percentage of ownership in the company without having to make a new investment.
lock-up period
Book Value
Initial Public Offering
Anti-Dilution Protections
39. 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.
recapitalization
private equity
going private
bridge loans
40. Partner who does not share in a firm's management and is liable for its debts only to the limits of said partner's investment
Capital
Pre-Money Valuation
Limited Partner
Series A Preferred Stock
41. 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
fund of funds
Lead Investor
Dividends
equity offerings
42. A study of the background and financial reliability of the company - management team and industry.
liquidation
debt financing
Due Diligence
Post-Money Valuation
43. The equity of the company and some types of debts (subordinated debt) but generally not senior secured debt (bank loan)
IPO (Initial Public Offering)
Capital
Business Summary
Closing
44. Used to compute net worth as the difference between total assets and total liabilities. adjusted value up to reflect market value
angel investors
acquisition
Venture Capitalist
Adjusted Book Value
45. 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.
follow-on
Bootstrapping
lock-up period
No Shop/Confidentiality
46. 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.
Venture Capital Financing
Qualified IPO
Deal Structure
Elevator Pitch
47. The process whereby a group of venture capitalists will each put in a portion of the amount of money needed to finance a small business.
Lead Investor
fund of funds
Conversion Rights
syndication
48. Corporation's first offer to sell stock to the public - Allows for anyone to buy stock and now falls under the SEC (No longer accredited investor) ...
Limited Partner
Liquidation Preference
No Shop/Confidentiality
Initial Public Offering
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
minority enterprise small business investment companies (MESBICS)
S Corporation
debt financing
Common Stock
50. The amount of this available to a management team for venture investments.
Conversion Rights
raising capital
Pre-money valuation
capital under management
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