1. One major drawback to gave an investor anti-dilution clauses or the right to approve future financing is that

a. it gives the investor "monopoly" power in providing future financing.

b. it reduces the investor's commitment to helping the business grow.

c. it increases the entrepreneur's share of equity versus the share of equity given to the investor.

d. all of the above are true.

2. If an investor asks for convertible debt when financing a business, the investor is more likely to convert debt to equity if

a. the business is failing.

b. the business is a brand new start-up.

c. the business is seeking new investors.

d. the business is growing successfully.