1. How can investors in venture capital increase the return potential of their investments? Discuss whether investors should contribute funds to relatively inexperienced partnerships (3 marks).

2. Briefly describe the performance of distressed securities in the last 5 years (1 mark).

3. Discuss two factors that may motivate a distressed investor (2 marks).

4. Discuss two regulatory concerns that may be faced by a distressed investor (2 marks).