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. An agreement issued by entrepreneurs to potential investors to protect the privacy of their ideas when disclosing those ideas to third parties.






2. The practice of a large company taking a minority equity position in a smaller company in a related field.






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






4. No double tax - Limited number of investors






5. The method by which an investor will realize an investment.






6. 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






7. How you get out






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. 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.






10. Used to compute net worth as the difference between total assets and total liabilities. adjusted value up to reflect market value






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






12. The sale or exchange of a significant amount of company ownership for cash - debt - or equity of another company.






13. 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.






14. 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






15. Term sheet for equity offering






16. 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






17. Don't talk to the market about the company






18. 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.






19. 'I will buy stock at price we negotiate'






20. Date the LP's subscription is effective and they become partner






21. 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.






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






23. 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) ...






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






25. The valuation of a company immediately after the most recent round of financing. For example - a venture capitalist may invest $3.5 million in a company valued at $2 million 'pre-money' (before the investment was made). As a result - the startup will






26. 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






27. The internal rate of return on an investment.






28. How you get to vote






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






30. 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.






31. How much the company is worth before an investment






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






33. The sale or distribution of a stock of a portfolio company to the public for the first time. IPOs are often an opportunity for the existing investors (often venture capitalists) to receive significant returns on their original investment. During peri






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






35. 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






36. The value at which an asset is carried on a balance sheet (the cost of the item)






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






38. 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






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






40. Capital raised for a private company from independently wealthy investors. This capital is generally used as seed financing.






41. 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 -






42. Unsecured debt - junior to senior debt (bank loan) and is senior to common stock and preferred. Gets paid last






43. The way you buy stock






44. An investment vehicle designed to invest in a diversified group of investment funds.






45. An acquisition of a business using mostly debt and a small amount of equity. The debt is secured by the assets of the business.






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






47. 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






48. The event in which the company is liquidated or sold (bankruptcy or sale to a public company)






49. The repurchasing of all of a company's outstanding stock by employees or a private investor. As a result of such an initiative - the company stops being publicly traded. Sometimes - the company might have to take on significant debt to finance the






50. 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







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