14. Venture capital firms assess two major issues when deciding to invest in a company. Which of the following indicates these issues? A. Company management and other funding secured by the company. B. A proven company track record and the risk-return tradeoff of an investment. C. Potential for a high return on investment and an easy exit strategy. D. Funding requested and company financial statements. E. Company's potential to generate profits and the funds available to the venture capital company 15. . In comparison to a typical commercial bank, an investment bank is likely to have A. lower levels of capital. B. higher reliance on long-term debt. C. lower levels of repurchase agreements. D. higher levels of net interest margin. E. higher levels of loans to customers. 16. An attempt by a market maker to earn a profit on the price movements of securities by taking inventory positions for its own account is called A. risk arbitrage. B. an agency transaction C. best efforts underwriting. D. pure arbitrage E. a principal transaction. 17. Open-end mutual funds guarantee A. investors a minimum rate of return. B. investors a minimum Net Asset Value (NAV). C. to redeem investors' shares upon demand at the daily Net Asset Value (NAV). D. to earn the rate of return promised in the prospectus. E. that there will be no load charges