This quiz works best with JavaScript enabled. Home > Venture Capital > Venture Capital – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Venture Capital Quiz 4 (20 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) Generating short-term profits. B) Supporting charitable causes. C) Achieving long-term financial growth. D) Promoting government initiatives. Show Answer Correct Answer: C) 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) $ 6300. B) $ 5500. C) $ 3, 450. D) $ 6800. Show Answer Correct Answer: A) $ 6300. 3. Which of the following is an example of external finance for a limited company? A) Retained profits of the company. B) Selling shares. C) Sale of assets no longer used in the business. D) Reducing stocks. Show Answer Correct Answer: B) Selling shares. 4. Venture Capital which originates from the majority of its fund raising in the form of its own capital is A) Private Equity capital. B) Equity Venture Capital. C) Leverage Venture Capital. D) Equity Private Capital. Show Answer Correct Answer: B) Equity Venture Capital. 5. Stages that are not included in the MV financing assessment process are: A) Initial Negotiations. B) Continued Evaluation. C) Divestment. 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) High-risk capital. B) Business Capital. C) Venture capital. D) Human capital. E) External economic capital. Show Answer Correct Answer: C) Venture capital. 7. Exit strategies do not include: A) Secondary market. B) Buyback of shares. C) Initial Public Offering (IPO). D) Split shares. Show Answer Correct Answer: D) 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) Ijarah. D) Come on. Show Answer Correct Answer: C) 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) Selling price. B) Hire Purchase plan. C) Interest. D) Discount. 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 Control. B) Risk Retention. C) Risk Avoidance. D) Risk Financing. Show Answer Correct Answer: A) 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) 30. B) 7. C) 16. D) 8. 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. ← PreviousNext →Related QuizzesVenture Capital Quiz 1Venture Capital Quiz 2Venture Capital Quiz 3Venture Capital Quiz 5Venture Capital Quiz 6Venture Capital Quiz 7Venture Capital Quiz 8Venture Capital Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books