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. How you get out
management buy-out (MBO)
S Corporation
Liquidation Preference
Qualified IPO
2. 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.
syndication
follow-on
Preferred Stock
limited partnerships
3. 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.
venture capital
Book Value
lead investor
corporate venturing
4. Also known as a bell cow investor. Member of a syndicate of private equity investors holding the largest stake - in charge of arranging the financing and most actively involved in the overall project
Bridge Financing
portfolio compaay
Limited Partner
Lead Investor
5. Don't talk to the market about the company
seed capital
Confidentiality
Cash-out election
Preferred Stock
6. 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.
recapitalization
Venture Capital Financing
lock-up period
Market Capitalization
7. The practice of a large company taking a minority equity position in a smaller company in a related field.
equity offerings
seed capital
debt financing
corporate venturing
8. This word is used to describe businesses that are in trouble and whose management will cause the business to become profitable so they are no longer in trouble.
lock-up period
Venture Capital Financing
turnaround
Adjusted Book Value
9. 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
Liquidation Preference
Cash-out election
raising capital
Capitalization Table
10. 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
Capitalization Table
Common Stock
secondary purchase
leverage buy-out(LBO)
11. Assets are subject to double taxation - Unlimited number of investors
angel investors
Restricted Stock
C Corporation
mezzanine financing
12. A security with limits on its transferability. Usually issued in connection with a private placement
Outstanding Stock
lock-up period
Restricted Stock
exit
13. 'I will buy stock at price we negotiate'
return on investment (ROI)
Stock Price Agreement
Preferred Stock
management buy-in (MBI)
14. 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
private investment in public equities (PIPE)
Bridge Financing
Preferred Stock
15. Compound internal rate of return.
IRR
Restricted Stock
syndication
mezzanine financing
16. These are equity securities of companies that have not 'gone public' (in other words - companies that have not listed their stock on a public exchange). Private equities are generally illiquid and thought of as a long-term investment. As they are no
Stock Price Agreement
buyout
venture capital
private equity
17. The equity of the company and some types of debts (subordinated debt) but generally not senior secured debt (bank loan)
limited partnerships
management buy-out (MBO)
executive summary
Capital
18. The equity ownership in a corporation. Also has basic voting rights
Common Stock
secondary purchase
minority enterprise small business investment companies (MESBICS)
small business investment companies (SBIC)
19. How you get to vote
Seed Money
Voting Rights
closing
IRR
20. This refers to a public offering subsequent to an initial public offering. A secondary public offering can be either an issuer offering or an offering by a group that has purchased the issuer's securities in the public markets.
secondary public offering
Qualified IPO
institutional investors
Closing
21. The rate at which a company expends net cash over a certain period - usually a month.
Dividends
Burn Rate
corporate venturing
acquisition
22. A business owned by stockholders who share in its profits but are not personally responsible for its debts
Preferred Stock
Post-Money Valuation
Corporation (Limited liability and taxation)
Common Equity
23. Pre-money valuation plus the amount invested in the latest round
Liquidation Preference
Post-money
NDA (Non-disclosure agreement)
Capital Commitment
24. This refers to obtaining capital from investors or venture capital sources.
fund of funds
Private Equity
liquidation
raising capital
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
Venture Capital Financing
venture capital
Membership Interest
recapitalization
26. When an investor sells a stock - bond or mutual fund at a higher price than he or she paid for it.
capital gain
Elevator Pitch
private equity
Qualified IPO
27. First to absorb losses. Represents common shareholders' investment in a company. It includes common stock value - retained earnings - capital surplus.
Internal Rate of Return
Adjusted Book Value
Common Equity
series a preferred stock
28. 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.
Outstanding Stock
Due Diligence
Restricted Stock
Capital Call 'Drawdown'
29. Purchase of stock in a company from a share holder - rather than purchasing stock directly from the company.
secondary purchase
mezzanine financing
Limited Partnership Agreement
executive summary
30. 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
Bridge Financing
NDA (Non-disclosure agreement)
Confidentiality
Venture Capitalist
31. 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
going private
Liquidation Preference
IRR
Market Capitalization
32. Funds provided to enable an enterprise to acquire another enterprise or product line or business.
Book Value
Venture Capital Financing
Equity
buyout
33. Term sheet for equity offering
syndication
Dividends
leverage buy-out(LBO)
Term Sheet
34. A detailed document that outlines what you are going to do and how you are going to do it - including a clear and simple discussion of the idea; the management team - including full resumes; business strategy; marketing plan - including sales projec
Business Plan
Restricted Stock
Liquidation Preference
Dividends
35. An IPO that has met certain
buyout
Liquidity Event
Qualified IPO
Deal Structure
36. 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.
secondary purchase
term sheet
Venture Capital Financing
Capital Commitment
37. 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
turnaround
private investment in public equities (PIPE)
Capitalization Table
Elevator Pitch
38. The act of one company taking over controlling interest in another company. Investors often look for companies that are likely candidates for this - because the acquiring firms are often willing to pay a premium to the market price for the shares.
Confidentiality
Lead Investor
acquisition
Due Diligence
39. 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)
General Partner (GP)
IPO (Initial Public Offering)
Equity
40. A brief statement covering the main points that includes a discussion of management - profits - strategic position - and exit plan
Outstanding Stock
minority enterprise small business investment companies (MESBICS)
Business Summary
Market Capitalization
41. 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) ...
Capitalization Table
lead investor
Initial Public Offering
Elevator Pitch
42. Means of financing a small firm by employing highly creative ways of using and acquiring resources without raising equity from traditional sources or borrowing money from the bank.
Lead Investor
Venture Capital Financing
Internal Rate of Return
Bootstrapping
43. The equity ownership in a LLC. May be either common or preferred. Partnership agreement
Membership Interest
closing
equity financing
Qualified IPO
44. Force sell of stock at a predetermined price. The rights by which the investor's preferred stock or subordinated debt 'converts' into common stock
Limited Partner
Conversion Rights
Outstanding Stock
Stock Price Agreement
45. Capital raised for a private company from independently wealthy investors. This capital is generally used as seed financing.
Private Equity
Lead Investor
Seed Money
Angel Financing
46. An agreement issued by entrepreneurs to potential investors to protect the privacy of their ideas when disclosing those ideas to third parties.
Seed Money
Equity
Common Stock
NDA (Non-disclosure agreement)
47. 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
going private
Restricted Shares
Capital Commitment
Deal Structure
48. 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.
minority enterprise small business investment companies (MESBICS)
Business Summary
capital under management
venture capital
49. The amount of this available to a management team for venture investments.
Business Plan
capital under management
Pre-Money Valuation
seed capital
50. 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.
secondary purchase
mezzanine financing
recapitalization
liquidation
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