Podcast
Questions and Answers
Which type of stock is limited so that an investor cannot receive more than a specified amount?
Which type of stock is limited so that an investor cannot receive more than a specified amount?
- Common stock
- Preferred stock
- Capped participating preferred stock (correct)
- Participating preferred stock
What is the rate at which a startup uses available cash to cover expenses in excess of revenue called?
What is the rate at which a startup uses available cash to cover expenses in excess of revenue called?
- Capital stock
- Capital call
- Burn rate (correct)
- Capitalization table
What type of ownership structure allows any number of individuals or companies to own shares?
What type of ownership structure allows any number of individuals or companies to own shares?
- Buy-sell agreement
- BDC
- C Corporation (correct)
- Capital gap
What is the difficulty faced by some entrepreneurs in trying to raise between $2 million and $5 million called?
What is the difficulty faced by some entrepreneurs in trying to raise between $2 million and $5 million called?
Which round of financing is typically referred to as the 'A' round?
Which round of financing is typically referred to as the 'A' round?
What are the current criteria for an individual to be considered an accredited investor?
What are the current criteria for an individual to be considered an accredited investor?
What does 'alpha' refer to in finance theory?
What does 'alpha' refer to in finance theory?
Which of the following is NOT considered an alternative asset class?
Which of the following is NOT considered an alternative asset class?
What is the purpose of allocating a certain percentage of investments to alternative assets for pension plans and college endowments?
What is the purpose of allocating a certain percentage of investments to alternative assets for pension plans and college endowments?
What does the term 'anti-dilution' refer to?
What does the term 'anti-dilution' refer to?
What does the term 'beta' measure in relation to a public stock?
What does the term 'beta' measure in relation to a public stock?
Which discount rate is used in a discounted cash flow model to determine the enterprise value of a firm using FCFF?
Which discount rate is used in a discounted cash flow model to determine the enterprise value of a firm using FCFF?
What is friends and family financing in the context of early-stage companies?
What is friends and family financing in the context of early-stage companies?
What is full ratchet in the context of investment rounds?
What is full ratchet in the context of investment rounds?
Which one of the following is a financing event that can significantly reduce the ownership percentage of previous investors in a startup company?
Which one of the following is a financing event that can significantly reduce the ownership percentage of previous investors in a startup company?
What is the ratio of current assets to current liabilities called?
What is the ratio of current assets to current liabilities called?
What type of retirement plan is based on an employee's salary and number of years worked, with fixed benefits paid after retirement?
What type of retirement plan is based on an employee's salary and number of years worked, with fixed benefits paid after retirement?
What is the interest rate used to determine the present value of future cash flows called?
What is the interest rate used to determine the present value of future cash flows called?
Which stage of a company is characterized by a complete management team and a substantial increase in revenues?
Which stage of a company is characterized by a complete management team and a substantial increase in revenues?
What is the formula for equity?
What is the formula for equity?
What is the purpose of a fairness opinion?
What is the purpose of a fairness opinion?
What is the difference between EBIT and EBITDA?
What is the difference between EBIT and EBITDA?
Which one of the following is a type of stock that gives an owner the right to convert preferred shares to common shares of stock?
Which one of the following is a type of stock that gives an owner the right to convert preferred shares to common shares of stock?
Which one of the following describes a company’s ability to pay debt from cash flow or profits?
Which one of the following describes a company’s ability to pay debt from cash flow or profits?
Which one of the following refers to the conclusion of a financing round whereby all necessary legal documents are signed and capital has been transferred?
Which one of the following refers to the conclusion of a financing round whereby all necessary legal documents are signed and capital has been transferred?
Which one of the following is a contractual right of an investor to sell some of the investor’s stock along with the founder’s or majority shareholder’s stock if either the founder or majority shareholder elects to sell stock to a third-party?
Which one of the following is a contractual right of an investor to sell some of the investor’s stock along with the founder’s or majority shareholder’s stock if either the founder or majority shareholder elects to sell stock to a third-party?
