Please answer the following questions in your own words. Each answer should be at least 2-3 sentences. Please reference if necessary.

1. What should be the goal of the financial projections in a business plan submitted to a venture capitalist?

1. Why do venture capitalists make quick decisions on the infeasibility of some business plans? When a business plan is not quickly determined to be infeasible, what happens next and why?

1. Is the compensation paid to venture capitalists (e.g. 2% management fee and 20% carried interest) reasonable? What are a funds investors buying with this compensation?

1. Why are venture capital funds typically organized as limited partnerships? In particular, why are they private firms instead of public firms?