1) The Liquidation Preference is how many times the investors receive their money back prior to the common shareholders. a) True b) False 2) Conversion rights are the investors' option to convert their common stock into preferred stock. a) True b) False 3) If you are the founder of a company all of your stock vests at the closing of the financing with the investors. a) True b) False 4) In the Venture Capital business normally, institutional investors invest all of the amount of their investment at the closing. a) True b) False