This quiz works best with JavaScript enabled. Home > Finance > Venture Capital > Venture Capital – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Venture Capital Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the primary motivation of venture capitalists when funding start-ups? A) Promoting government initiatives. B) Achieving long-term financial growth. C) Supporting charitable causes. D) Generating short-term profits. Show Answer Correct Answer: B) Achieving long-term financial growth. 2. A Television can be bought on hire purchase with a down payment of $ 800 and 20 monthly installments of $ 275. What is the hire purchase price? A) $ 5500. B) $ 6300. C) $ 6800. D) $ 3, 450. Show Answer Correct Answer: B) $ 6300. 3. Which of the following is an example of external finance for a limited company? A) Retained profits of the company. B) Sale of assets no longer used in the business. C) Selling shares. D) Reducing stocks. Show Answer Correct Answer: C) Selling shares. 4. Venture Capital which originates from the majority of its fund raising in the form of its own capital is A) Equity Venture Capital. B) Leverage Venture Capital. C) Private Equity capital. D) Equity Private Capital. Show Answer Correct Answer: A) Equity Venture Capital. 5. Stages that are not included in the MV financing assessment process are: A) Divestment. B) Continued Evaluation. C) Initial Negotiations. D) Controlling. Show Answer Correct Answer: D) Controlling. 6. This is a form of high-risk, usually in the form of loans or shares, invested by venture capital firms. It usually happens at the start of a business idea. A) External economic capital. B) Venture capital. C) Human capital. D) Business Capital. E) High-risk capital. Show Answer Correct Answer: B) Venture capital. 7. Exit strategies do not include: A) Buyback of shares. B) Split shares. C) Initial Public Offering (IPO). D) Secondary market. Show Answer Correct Answer: B) Split shares. 8. Which of the following is NOT the shariah principle being used in venture capital and private equity? A) Musharakah. B) Mudharabah. C) Come on. D) Ijarah. Show Answer Correct Answer: D) Ijarah. 9. Why might venture capitalists be motivated to fund start-ups with innovative technologies? A) To gain personal fame and recognition. B) To foster economic development and job creation. C) To maintain the status quo in established industries. D) To ensure government control over emerging technologies. Show Answer Correct Answer: B) To foster economic development and job creation. 10. What is the source of funds for venture capital? A) Banks and financial institutions. B) Government grants and subsidies. C) Personal savings and loans. D) Institutional investors, high-net-worth individuals, and corporate investors. Show Answer Correct Answer: D) Institutional investors, high-net-worth individuals, and corporate investors. 11. What is the Put Option tool in Startup Financing? A) A pledge for the investor over some valuable assets of the newly founded company. B) A way to reduce the risk that the business plan is not accurate and reliable by granting the inventor some stock options. C) A tool used to sell back to the entrepreneur the shares the investor bought. D) The right balance between not losing all the investment and not having any say in the management of the business. Show Answer Correct Answer: C) A tool used to sell back to the entrepreneur the shares the investor bought. 12. The largest value of the portfolio of the mentioned VC firms is: A) Andreessen Horowitz. B) Sequoia Capital. C) Founders Fund. D) Khosla Ventures. Show Answer Correct Answer: A) Andreessen Horowitz. 13. The statement is true: A) The concept of Venture Capital is broader than Private Equity. B) The concept of Venture Capital is narrower than Private Equity. C) The concept of Venture Capital is identical to Private Equity. D) None of above. Show Answer Correct Answer: B) The concept of Venture Capital is narrower than Private Equity. 14. A ..... comes with a down payment and monthly installments. A) Discount. B) Hire Purchase plan. C) Selling price. D) Interest. Show Answer Correct Answer: B) Hire Purchase plan. 15. Which of the following refers to the characteristics of the money market? A) Securities have a life of more than one year. B) Represent ownership of a firm. C) Includes bonds and debentures. D) Are more liquid than capital market. Show Answer Correct Answer: D) Are more liquid than capital market. 16. The measures aimed at avoiding, eliminating or reducing the chances of loss production is covered by ..... A) Risk Financing. B) Risk Control. C) Risk Avoidance. D) Risk Retention. Show Answer Correct Answer: B) Risk Control. 17. Which of the following is the contract of agent will act on behalf principle according to the term and condition? A) Wakalah Ammah. B) Private agency. Show Answer Correct Answer: B) Private agency. 18. How many countries has the Golden Gate venture has invested in the Asian market? A) 16. B) 7. C) 8. D) 30. Show Answer Correct Answer: B) 7. 19. Voices Unheard is a JA company and they sell A) Shirts. B) Caps. C) Cases. D) Socks. Show Answer Correct Answer: A) Shirts. 20. Which of the statements is correct? a. Insurance is a transfer of risk mechanism. b. Insurance gives physical protection to assets. A) Statement A. B) Statement B. C) Both the statements. D) Neither of the statements. Show Answer Correct Answer: A) Statement A. 21. What does Mark Cuban offer for the holly balls? A) $ 25, 000 for 20 percent. B) $ 150, 000 for 20 percent. C) $ 20, 000 for 25 percent. D) $ 150, 000 for 25 percent. Show Answer Correct Answer: B) $ 150, 000 for 20 percent. 22. In summary, what is the primary motivation of venture capitalists when funding start-ups? A) To achieve personal wealth and fame. B) To support innovation and business growth. C) To maintain the status quo in established industries. D) To fund government initiatives and programs. Show Answer Correct Answer: B) To support innovation and business growth. 23. ..... policy matures on the assured death or on his attainment of a particular age whichever occurs earlier. A) Joint life. B) Endowment. C) Money back. D) Single premium. Show Answer Correct Answer: B) Endowment. 24. The party who owns a leased asset is called the: A) GUARANTOR. B) TRUSTEE. C) LESSEE. D) LESSOR. Show Answer Correct Answer: D) LESSOR. 25. PE/VC funds had their origins in: A) Great Britain. B) Japan. C) Poland. D) United States. Show Answer Correct Answer: D) United States. 26. The principle of indemnity is applicable to ..... only. A) Proximate Cause. B) Personal accident insurance. C) Property insurance. D) Life Insurance. Show Answer Correct Answer: A) Proximate Cause. 27. Mekong Capital's famous investments not include: A) Golden Gate. B) Ants. C) Vietnam Australia International School. D) Mobile World. Show Answer Correct Answer: B) Ants. 28. Which Slovak venture fund is the oldest and at the same time the largest? A) Arca ventures fund. B) Neulogy venture fond. C) Eset venture fond. D) None of above. Show Answer Correct Answer: B) Neulogy venture fond. 29. Why do firms need VC (venture capital)? A) Because they're in their early stage and need cash to invest. B) Because they are too small or risky for banks to give them loans. C) Because they do not have access to capital markets. D) All of them. Show Answer Correct Answer: D) All of them. 30. The Insurance is a ..... A) Hazard. B) Uncertainty. C) Peril. D) Contract. Show Answer Correct Answer: D) Contract. ← PreviousNext →Related QuizzesFinance QuizzesVenture Capital Quiz 1Venture Capital Quiz 2Venture Capital Quiz 4Venture Capital Quiz 5Venture Capital Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books