1. Venture capital firms take a portfolio approach to their investments. This means that:

Group of answer choices

They invest in a geographically diverse portfolio to diversify geopolitical risk

They invest in companies in various high growth and low growth industries to spread risk out amongst sectors and risks

They try to invest in a mix of deals of varying risk and reward, some high risk with potential for big rewards and some with lower risk but likely smaller rewards

They invest in stock, bonds, and real estate

They invest in a range of companies with the potential for similar, large outcomes

2.

From the HBR reading on recognizing and finding opportunity, the most common source of new venture ideas is?

Group of answer choices

Replication or modification of ideas encountered while working

Serendipity, or stumbling into an opportunity during temp. work, reading about it, or from a hobby

Meeting people with complementary skill sets that you gel well with and brainstorm together

Diligent market research and analysis

Seeing market changes occurring and following those changes

3.

From the HBR article on recognizing and finding opportunities, which of the following is not a key skill that successful entrepreneurs demonstrate?

Group of answer choices

Observing, or scrutinizing common phenomena, particularly customer behavior

Experimenting, or reducing uncertainty by designing focused experiments to test assumptions

Questioning, or asking questions that challenge conventional wisdom and status quo

Controlling, or the ability to ensure that important decisions all run through the entrepreneurial founder

Associating, or connecting seemingly unrelated questions, problems, and ideas

4.

Which parts of a Termsheet are legally binding?

Group of answer choices

Voting Agreement and Co-Sale Agreement

Co-sale Agreement and Confidentiality

Confidentiality and No Shop clauses

Investor Rights Agreement and No Shop Clause

Investor Rights Agreement and Voting Agreement

They invest in companies in various high growth and low growth industries to spread risk out amongst sectors and risks

They try to invest in a mix of deals of varying risk and reward, some high risk with potential for big rewards and some with lower risk but likely smaller rewards

They invest in stock, bonds, and real estate

They invest in a range of companies with the potential for similar, large outcomes