4. Which of following statements is false?

a. Usually preferred stock is given voting rights as if they have been converted to common

b. Staged financing is beneficial to founders because it could result in reduced ownership by investors than if there were no staged investing

c. Staged financing is beneficial to investors as it gives them option to abandon the venture

d. Staged financing is not beneficial to founders as it limits funding

5. Which of the following statements is false?

a. Imbalances in supply and demand for venture capital dont affect VC return performance.

b. Gatekeepers have bargaining power.

c. Reputable VC firms prefer not to get funding through gatekeepers.

d. Venture capital is a type of private equity capital.

6. Which of the following statements is false?

a. Option pool always comes out of founders shares.

b. An IPO is considered a liquidation event.

c. Participation rights refer to the right to participate in upside of company

d. Multiple liquidation preference provides less payoff to VC than liquidation preference.