This quiz works best with JavaScript enabled. Home > Venture Capital > Venture Capital – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Venture Capital Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What offer does Barbara have for the giant inflatable Christmas ornaments? A) She wants to hear other offers before making her own. B) She is offering to partner with them. C) She is offering a fair deal. D) She is not interested in their product. Show Answer Correct Answer: C) She is offering a fair deal. 2. If an organization wishes to venture into Insurance Business it has to obtain a licence first from which of the following? A) Indian Banks Association (IBA). B) Security and Exchange Board of India (SEBI). C) Tariff Advisory Committee (TAC). D) Insurance Regulatory and Development Authority of India (IRDAI). E) None of these. Show Answer Correct Answer: D) Insurance Regulatory and Development Authority of India (IRDAI). 3. In a typical venture capital portfolio, most of the returns are from 20% of the investments. This means that A) Statistically, if a venture capital makes ten investments, two will be winners and create most of the gains in the fund. B) 1 in 5 venture capital funds will succeed in its investments. C) 95% of investments made by venture capitalists fail, but 5 % make such spectacular returns that they subsidize the failures. D) The venture capital will always have one fifth of the votes in the companies' decisions. Show Answer Correct Answer: A) Statistically, if a venture capital makes ten investments, two will be winners and create most of the gains in the fund. 4. Which of the following is the best definition of venture capital? A) Investment of personal money by wealthy individuals. B) Investment from an established business into another business in return for shares. C) Money to buy machinery. D) Loans taken from wealthy businesses. Show Answer Correct Answer: B) Investment from an established business into another business in return for shares. 5. Transfer of risk to other party is done through ..... A) Reduction. B) Control. C) Retention. D) Insurance. Show Answer Correct Answer: D) Insurance. 6. Who are the individuals or entities that provide venture capital funding? A) Entrepreneurs. B) Banks. C) Venture capitalists. D) Government agencies. Show Answer Correct Answer: C) Venture capitalists. 7. PE/VC funds are the riskiest: A) Mega funds. B) Mainstream funds. C) Second tier funds. D) Niche funds. Show Answer Correct Answer: D) Niche funds. 8. Which stage of a business is typically funded by venture capital? A) Exit stage. B) Mature stage. C) Growth stage. D) Early stage. Show Answer Correct Answer: D) Early stage. 9. The differential profit of the CocaCola brand is 370 million, this brand has a strength of 85 points and the PER of the industry is 24. What is the value of the brand? A) 7.548. B) 8.880. C) 370. D) 7.750. Show Answer Correct Answer: A) 7.548. 10. True or false:venture capitalists cannot pull out the company until the company has gone public A) True. B) False. Show Answer Correct Answer: B) False. 11. The claim amount received from insurer are treated as ..... A) Nontaxable Income. B) TaxableGain. C) Gains. D) Reserve. Show Answer Correct Answer: B) TaxableGain. 12. Gatekeepers had to participate in transactions between the Private Equity fund and A) Pension fund and HNWI. B) Pension fund and hedge fund. C) HNWI and the central bank. D) None of above. Show Answer Correct Answer: A) Pension fund and HNWI. 13. What are some benefits that a venture-backed company can gain from Private Equity (PE) financing? A) Certification benefit, network benefit, knowledge benefit, and financial benefit. B) Liquidity benefit, network benefit, managerial benefit, and financial benefit. C) Debt benefit, network benefit, knowledge benefit, and financial benefit. D) Network benefit, knowledge benefit, certification benefit, and managerial benefit. Show Answer Correct Answer: A) Certification benefit, network benefit, knowledge benefit, and financial benefit. 14. Venture capital capitalists can earn A) A portion of the firm's equity. B) High returns. C) Small returns but influence on the company direction. D) High returns, a chunk of the company's equity as well as influence on the company decisions. Show Answer Correct Answer: D) High returns, a chunk of the company's equity as well as influence on the company decisions. 15. Angel investing in capital is typically provided in which stage of financing? A) Later-stage. B) Formative-stage. C) Mezzanine-stage. D) All stages. Show Answer Correct Answer: B) Formative-stage. 16. Which of the below is the best definition of Crowd Funding? A) Raising finance from professional investors. B) Raising finance from borrowing money. C) Raising finance from lots of small investors through a portal. D) Raising finance by selling assets. Show Answer Correct Answer: C) Raising finance from lots of small investors through a portal. 17. Transfer of rights and remedies of the insured to the insurer after indemnity has been effected is called ..... A) Insurable interest. B) Subrogation. C) Proximate clause. D) Money back policy. Show Answer Correct Answer: B) Subrogation. 18. Is the financial investment of the buy-out program of the Arca fund in the range of 5-20 million euros? A) Yes. B) NO. Show Answer Correct Answer: A) Yes. 19. Why can big VC firms risk losing money in their deals? A) Because they will get high ROI. B) Because investing in a successful start-up will make up for their loss. C) Because they can be covered by the big banks. D) Because sometimes you win, sometimes you lose. Show Answer Correct Answer: B) Because investing in a successful start-up will make up for their loss. 20. Surique is a JA company and they sell A) Shirts. B) Caps. C) Cases. D) Socks. Show Answer Correct Answer: C) Cases. ← PreviousNext →Related QuizzesVenture Capital Quiz 1Venture Capital Quiz 2Venture Capital Quiz 3Venture Capital Quiz 4Venture Capital Quiz 5Venture Capital Quiz 7Venture Capital Quiz 8Venture Capital Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books