1) The single most important criterion for selecting an investor is the size of fund it can provide to an organization.

True

False

2) An equity investment requires that the management team firmly believe that investors can and will add value to the venture.

Group of answer choices

True

False

3) Angels or wealthy individuals are often sought because the evaluations they provide of potential investments are more thorough than formal investors.

True

False

4) What is the size of funds provided by mainstream venture capitalists?

Over $500 million under management

$25-$50 million under management

$50-$100 million under management

$250-$499 under management

5) Most organizations that are funded by venture capital investors are in the form of:

Partnerships

Public companies

Corporations

S-Corps

6) What is the average number of hours that a venture capitalist will spend conducting due diligence on a promising venture?

400

120

25

60

7) The subordinated-debt capital is generally unsecured, with a fixed coupon and maturity of:

3-5 years

1-3 years

10-15 years

5-10 years

8) The investigation that an investor undertakes for verification of facts, backgrounds, and reputations of key people, market estimates, technical capabilities of a product, and proprietary rights refers to [blank] on the part of the investor.

9) Capital that is between senior debt financing and common stock is called [blank] financing.