1.What is the watermark for good VC performance?

A.100x return on fund

B.$100m return

C.3x return on fund

D.10% return

2.VCs charge their LP's a 2% management fee. Why?

A.Investments take several years to generate a return.

B.VC's need to pay operating expenses while they wait for returns.

C.Everybody else does it.

D.All of the Above

E.A & B

3.When remedying a breach of contract, when does it not make sense to remedy the breach with cash?

A.When the contract breach was immoral.

B. When the contract was for a wholly unique item.

C. When the contract was for services.

D.When the contract was not in writing.

4.Why does a VC fund limit the amount of money it takes from LPs?

A.To create scarcity

B.To preserve return rates

C.To block the haters

D.To reduce management fees

5.U.S. Congrress proclaims that any restaurant that displays a pro-America sign is exempt from any State regulation. The Consitution does not grant U.S. Congress such powers, and this proclamation is therefore unconstistutional. Why?

A.Federal authority is limited to its enumerated powers

B.Restaurants have freedom of speech

C.There must be separation of church and state

D.The U.S. is a free market.

6.Why is the legal purpose of a corporation to "maximize stockholder value?

A.Because we live in capitalism

B.Money is objectively measurable

C.Corporations are greedy

D.Money is subjectively measurable

7.A classmate offers you the chance to invest into a businesses opportunity wherein you would pay $60 for nutritional supplements and are responsible for re-selling those supplements to other students. Any revenue you make is yours to keep. - There is a 75% chance you cannot sell the supplements and you lose $60. - There is a 25% chance you sell the supplements for $80. What is the expected return of this investment?

A.-$25

B.-$60

C.$80

8.A classmate offers you the chance to invest into a businesses opportunity wherein you would pay $60 for nutritional supplements and are responsible for re-selling those supplements to other students. Any revenue you make is yours to keep. - There is a 75% chance you cannot sell the supplements and you lose $60. - There is a 25% chance you sell the supplements for $80. Is this a good investment?

Y.Yes

N.No

12

Which special rights does a debtholder have that stockholder doesn't?

A.Appoints directors to board

B.Receives dividends

C.Priority in liquidation

D.Votes at quarterly meetings

D

$20