Entrepreneurship Chatper 10

Front 1

The equation for the value of a company with the earnings capitalization method is _____

Back 1

company value = net income/capitalization rate

Front 2

What must be added to operating income when we are calculating free cash flow.

Back 2

depreciation

Front 3

All of the following is mentioned in the chapter as funding from other external sources except ______

Back 3

credit card limits

Front 4

Half of all informal investors are expecting to get all their money back in _____.

Back 4

2 years or less

Front 5

Least desirable way for a VC to harvest their investment is _____

Back 5

buyback

Front 6

Which of the following can be a non financial reason for an angel to invest.

Back 6

all of the above

Front 7

Which of the following does not relate to the op six factors that VCs evaluate when evaluating a candidate for investment.

Back 7

investor relations

Front 8

VCs will invest only if the company has the potential to return at least ____.

Back 8

7x in 5 years

Front 9

What are the most attractive companies that go public usually backed with?

Back 9

Venture Capitalists

Front 10

What will a VC almost always get in exchange for a money investment

Back 10

convertible preferred stock