This quiz works best with JavaScript enabled. Home > Finance > Venture Capital > Venture Capital – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Venture Capital Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Mekong capital is..... A) A private equity firm with a focus on Vietnam. B) The investment amount managed by the fund is currently 100 million USD. C) The most successful technology investment funds in Vietnam today. D) Focuses on businesses operating in the Internet sector. Show Answer Correct Answer: A) A private equity firm with a focus on Vietnam. 2. Which of the below is an advantage of Crowdfunding? A) If the funding target is not met, all the finance is returned. B) Low rates of interest are charged as there is low risk. C) It can cost a lot to get the promotional video made. D) It can generate publicity for the business. Show Answer Correct Answer: D) It can generate publicity for the business. 3. What is Sudden Death Risk in Seed Financing? A) The risk of the company failing to generate profits. B) The risk of the company being sold unexpectedly. C) The risk of the person owning the project's idea suddenly not being able to perform his or her job. D) The risk of the entrepreneur suddenly passing away. Show Answer Correct Answer: C) The risk of the person owning the project's idea suddenly not being able to perform his or her job. 4. What best describes a 'Term Sheet' in the venture capital investment process? A) A legally binding contract for investment. B) A document outlining the final terms and conditions of the completed investment. C) A document outlining the basic terms and conditions under which an investment will be made. D) An agreement that guarantees a return on investment. Show Answer Correct Answer: C) A document outlining the basic terms and conditions under which an investment will be made. 5. Except life assurance the maximum term of other insurance is ..... A) Six months. B) Twelve months. C) Twenty four months. D) Thirty six months. Show Answer Correct Answer: B) Twelve months. 6. This type of PMV financing can be done in 3 ways, except A) Indirect Capital Participation. B) Profit Sharing Financing. C) Direct Capital Participation. D) Direct bond inclusion. Show Answer Correct Answer: D) Direct bond inclusion. 7. Which of the mentioned VC funds also focuses on the gaming industry? A) Benchmark capital. B) Sequoia. C) Andreessen Horowitz. D) None of above. Show Answer Correct Answer: C) Andreessen Horowitz. 8. The Person whose risk is insured is called ..... A) Insured. B) Merchandiser. C) Marketer. D) Agents. Show Answer Correct Answer: A) Insured. 9. What is venture capital? A) Money lent to individuals for personal use. B) Money lent to start-ups for business development. C) Money lent to established businesses for expansion. D) Money lent to governments for infrastructure projects. Show Answer Correct Answer: B) Money lent to start-ups for business development. 10. Which of the options is not a VC strategy? A) Geographic focus. B) Focus on the real estate decline. C) Syndication Strategy. D) Added value strategy. Show Answer Correct Answer: B) Focus on the real estate decline. 11. What is the main objective of venture capital? A) To acquire ownership of established companies. B) To provide loans to small businesses. C) To promote mergers and acquisitions. D) To provide funding and support to startups. Show Answer Correct Answer: D) To provide funding and support to startups. 12. In the context of venture capital, why might an individual be motivated to fund a start-up? A) To gain influence in government. B) To support innovative ideas and entrepreneurs. C) To secure personal loans. D) To invest in established corporations. Show Answer Correct Answer: B) To support innovative ideas and entrepreneurs. 13. Anna is planning to sell her Colcola Corp. shares that she bought two years ago to Adam. The transaction that will happen between Anna and Adam takes place at ..... A) Secondary market. B) Primary market. C) Public offerings. D) Money market. Show Answer Correct Answer: A) Secondary market. 14. Which of the following is an example of a well-known start-up that received venture capital funding? A) A technology company like Google. B) A century-old family-owned bakery. C) A government-run healthcare system. D) A popular chain of fast-food restaurants. Show Answer Correct Answer: A) A technology company like Google. 15. Why do the entrepreneurs choose Mark and Barbara over Damon and Laurie? A) They believed in the product from the beginning. B) They had a gut feeling. C) There was no reason given. D) They offered more money. Show Answer Correct Answer: A) They believed in the product from the beginning. 16. What form of investment is the most common for the Venture capital fund? A) Start-up financing. B) Rescue financing. C) Pre-start financing. D) Development financing. Show Answer Correct Answer: C) Pre-start financing. 17. Which of the following funds is not a Slovak VC fund: A) Elevator Ventures. B) Slovak Development Fund. C) Ether Capital. D) Venture to Future fund. Show Answer Correct Answer: A) Elevator Ventures. 18. What is Seed Financing? A) Financing a company that has already started generating sales. B) Financing a company moving toward operation but prior to commercial production or sales. C) Financing an idea or research and development project that is very industry-oriented and risky. D) Financing the first phase of growth of a new company that has started generating sales. Show Answer Correct Answer: C) Financing an idea or research and development project that is very industry-oriented and risky. 19. The expansion phase in the development of an enterprise includes: A) Maturity phase and decline phase. B) A phase of rapid growth and a phase of decline. C) The rapid growth phase and the maturity phase. D) None of above. Show Answer Correct Answer: C) The rapid growth phase and the maturity phase. 20. Which of the following is a characteristic feature of venture capital firms? A) Developing a portfolio of companies. B) Holding debt in the firms that are funded. C) Allowing firms to use the funds as they see fit. D) Having a short-term investment horizon. Show Answer Correct Answer: A) Developing a portfolio of companies. 21. Venture Capital Financing is capital investment. This is the technical definition of the term A) Convertible Bond. B) Convertible Equity Financing. C) Semi Equity Financing. D) Quasi Equity Financing. Show Answer Correct Answer: D) Quasi Equity Financing. 22. What is Early Growth Financing? A) Financing a company that has already started generating sales. B) Financing a company moving toward operation but prior to commercial production or sales. C) Financing an idea or research and development project that is very industry-oriented and risky. D) Financing the first phase of growth of a new company that has started generating sales. Show Answer Correct Answer: D) Financing the first phase of growth of a new company that has started generating sales. 23. Which of the following is a disadvantage of crowd funding? A) It can take time and money to make the video and generate interest. B) Doesn't have to be repaid. C) No interest charged. D) Riskier projects can be funded. Show Answer Correct Answer: A) It can take time and money to make the video and generate interest. 24. Which of these investments has the least risk? A) Rescue financing. B) Start-up financing. C) Pre-start financing. D) None of above. Show Answer Correct Answer: A) Rescue financing. 25. Which is not included in rocess of a Venture Capital? A) Identify the target business. B) Targeted business value growth. C) Divestment. D) None. Show Answer Correct Answer: D) None. 26. What is the focus (sector) of our fund A) Biotechnologies. B) Technologies. C) Healthcare. D) Transport. Show Answer Correct Answer: B) Technologies. 27. The largest industry group receiving venture capital funding is? A) Computer software. B) Medical health. C) Computer hardware. D) None of the above. Show Answer Correct Answer: D) None of the above. 28. If a hire purchase plan is not done, then the person must buy the item in full ..... A) Discount. B) Credit. C) Loan. D) Cash. Show Answer Correct Answer: D) Cash. 29. Which company does not have Sequoia Capital in its portfolio? A) Airbnb. B) Oracle. C) Apple. D) PayPal. Show Answer Correct Answer: A) Airbnb. 30. The insurance companies collect a fixed amount from its customers at a fixed interval of time. What is it called? A) A Instalment. B) B Contribution. C) C Premium. D) D EMI. Show Answer Correct Answer: C) C Premium. 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