$1.$

Question $1$

Why is seed financing very risky?

$1$ point

In order to find a successful project, the PEI will have lost a lot of money on other losing projects.

The PEI deals with the banking system in this phase.

Practitioners say that out of $100$ projects you will only find only $10$ successful ones.

$2.$

Question $2$

Which of the following is a characteristic of VC$?$

$1$ point

The PEI can have a general approach regardless of the field where the company operates in$.$

The PE has a hands$-$off approach.

The investment is characterised by a high level of risk.

$3.$

Question $3$

Is the price of a PE share higher or lower than the one of a public company?

$1$ point

PE price is usually lower: The risk is too high to demand a price which is too high.

There is no specific rule: The price is the result of a negotiation.

PE price is usually higher: The value created is higher than in a public company.

$4.$

Question $4$

What is the twofold nature of PE$?$

$1$ point

PE is a source of financing and governance.

PE is a source of financing and capital gain.

PE is a source of financing and investment.

$5.$

Question $5$

What is the big difference between PIPE and the other PE activities?

$1$ point

In PIPE, the PEI has to replace an existing shareholder.

PIPE only deals deals with a Public Admin.

PIPE deals with a company whose shares are listed on a stock exchange.

$6.$

Question $6$

What is the financial benefit for a company when financed by a PE$?$

$1$ point

The increase in the equity level.

The injection in the venture backed company's equity.

The positive effect PE has on the cost of capital.

$7.$

Question $7$

What is the right kind of financing in the development phase?

$1$ point

Financial markets.

Banking system.

Family and friends.

$8.$

Question $8$

When does the development phase occur?

$1$ point

When the company is planning to expand itself through expansion financing.

When the company has just started its operations.

When the company does not exist yet.

$9.$

Question $9$

What statement defines Venture Capital?

$1$ point

VC differs from PE in that it deals with the early stage of a company's life.

VC is the PE financing the earliest stage of a company's activities.

VC financing can only be done through debt capital.

$10.$

Question $10$

Which of the following is a feature of seed financing?

$1$ point

Money is used to finance research: The company needs money to finance the development.

The managerial involvement is very high: The company has to start up all operations.

Money is used to pay off debtors.