Test your basic knowledge |

Venture Capital

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. Document between general and limited partnership of each fund spells out details of the partnership.






2. Are the means by which an investor preserves its percentage of ownership in the company without having to make a new investment.






3. Pre-money valuation plus the amount invested in the latest round






4. The internal rate of return on an investment.






5. Funds provided to enable an enterprise to acquire another enterprise or product line or business.






6. Issue of shares of a company to the public by the company (directly) for the first time.






7. Force sell of stock at a predetermined price. The rights by which the investor's preferred stock or subordinated debt 'converts' into common stock






8. Purchase of a business by an outside team of managers who have found financial backers and plan to manage the business actively themselves.






9. How you get to vote






10. 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






11. 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.).






12. Most senior form of debt and is usually secured by the assets of the company. Cannot vote on anything






13. Investments by a private equity fund in a publicly traded company - usually at a discount.






14. When an investor sells a stock - bond or mutual fund at a higher price than he or she paid for it.






15. No double tax - Limited number of investors






16. 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.






17. 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






18. 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






19. Raising funds by offering ownership in a corporation through the issuing of shares of a corporation's common or preferred stock.






20. How fast you can turn it into cash - termination of a business operation by using its assets to discharge its liabilities






21. Individuals that provide venture capital to seed or early stage companies. They can usually add value through their contracts and expertise.






22. Selling an interest in your business to an outside party to raise money.






23. This refers to obtaining capital from investors or venture capital sources.






24. Assets are subject to double taxation - Unlimited number of investors






25. The rate at which a company expends net cash over a certain period - usually a month.






26. 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






27. 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






28. This refers to a synopsis of the key points of a business plan.






29. Letter of intent summarizing the key legal and financial terms






30. 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.






31. The equity ownership in a corporation. Also has basic voting rights






32. 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.






33. The first round of capital for a start-up business. Seed money usually takes the structure of a loan or an investment in preferred stock or convertible bonds - although sometimes it is common stock. Seed money provides startup companies with the cap






34. 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






35. The amount of this available to a management team for venture investments.






36. 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






37. The residual ownership in a company like a corporation or LLC 51%=control






38. 'IOU' for stock - form of equity similar to option allowing the Warrant holder to exercise the Warrant and obtain equity






39. 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






40. A form of equity ownership in a corporation that contains preferences over common stock - stock whose holders are guaranteed priority in the payment of dividends but whose holders have no voting rights






41. The final event to complete the investment - at which time all the legal documents are signed and the funds are transferred.






42. The party that manages a limited partnership and is liable for the debts of the company






43. The way you buy stock






44. 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.






45. 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






46. 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.






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






48. 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 -






49. 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.






50. The rate of return or profit that an investment is expected to earn.







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

Browse all subjects

Browse all tests

Most popular tests