7) Which of the following statements is not generally a feature of venture capital? Minority shareholding Provides advisory services alongside equity investment Requires extensive due diligence O Low failure rates Single choice 8) Auditing is required because internal controls will always have limitations. Which do you think is the fundamental reason why there will always be limitations on controls? Human involvement always has the potential for errors. These might be genuine mistakes or fraudulent activity. You only do the controls exercise when you set up a business so they become less useful over time. Auditing is a big industry for professional services firms and they are keen to get lots of business. O Companies rarely have a controls framework which is good enough Single choice 9) The borrower has annual operating lease rentals of $2 million. When assessing the impact thereof on the borrower's financial risk profile, which of the following will the lender not consider? Estimating the impact of the lease rentals on the coverage ratios, and the impact of the capitalised debt on the Gearing ratio Decreasing the cash in the Balance Sheet by the capitalised value of the lease rental Apportioning the annual lease rental as a financial expense in the Income Statement Capitalising the annual lease rental value and adding it to the Balance Sheet debt