ENT 4183 Fall 2024 Exam 3 PDF

Technological Entrepreneurship, ENT 4183 Fall 2024 Individual Exam 3 M. Pape **This exam is to be completed by you individually and you are not to share your answers with classmates. I have confidence that you will respect the UCF Creed particularly as it relates to "Integrity":** **[This is an...

Technological Entrepreneurship, ENT 4183 Fall 2024 Individual Exam 3 M. Pape **This exam is to be completed by you individually and you are not to share your answers with classmates. I have confidence that you will respect the UCF Creed particularly as it relates to "Integrity":** **[This is an open note and internet exam] so use the materials from the Modules and readings to complete this exam. When complete upload the completed document to Webcourses by the due date and time as indicated on the Webcourses Assignments page for this course.** **[Entrepreneurial Finance (Total: 56 points)]** 1. Below is a simple capitalization table with three founders who each own various common stock shares. An additional **95,000** shares have been set aside in an option pool for future hires. 2. TechCo founders have raised **\$210,000** from a Series A investor for **19%** of the company. The investor has agreed to pay each co-founder a salary of **\$24,000/year** for 2 years. The co-founders and Series A investor believe that TechCo can be acquired for **\$7,300,000** after 2 more years of operation. Complete the Cap Table below and put the correct answers for each shaded box next to the letters below. **(20 points)** A black background with a black square Description automatically generated with medium confidence a\. 44.55% b\. 36.45% c\. 19% d\. \$3,252,150 e\. \$2,660,850 f\. \$1,387,000 g\. 1,105,263.15 h\. \$114,000 3. While TechCo founders were negotiating with the investors mentioned in the previous question (let's call them Investor \#1) they were approached by another investor (let's call them Investor \#2). Investor \#2 offered the founders the same amount of money **(\$210,000**) but for **22%** of the company. Relationally, the founders like and get along with both investors and think each will be a valuable asset to the company. They decided to reject the offer from Investor \#2 and took the offer from Investor \#1. Why did they decline the offer from Investor \#2? Full credit given with quantitative analysis. **(10 points)** 4. **Reading Reflection** (**10 points).** - **Choose one (1) article from the following from Modules 9, 10, or 11 which you found interesting and write about it as instructed below**: - Investor Guide from Fundable. This is a very concise overarching view of the funding process.  They have done a nice job of distilling down important information in a "short-chapter" format.  [https://www.fundable.com/learn/resources/guides/investorLinks to an external site.](https://www.fundable.com/learn/resources/guides/investor) - The Only Pitch Guyde You Will Ever Need.  From Guy Kowasaki (PDF) - *Revising the DIKW Pyramid and the Real Relationship Between Data, Information, Knowledge, and Wisdom* by Van Meter (PDF)  - *The DIKW Model in the Age of Artificial Intelligence* by Peters et al (PDF) **[\ ]** **[Multiple Choice (Total: 34 points)]** 1. **What is a common goal of seeking non-dilutive partnership funding?** A. To secure a business loan through a technology bank like Silicon Valley Bank B. To gain expertise or access to technology without giving up equity C. To distribute dividends to shareholders since you are a private company. D. To facilitate buyout of C-Suite management's shares by Angel investors 2. **Which of the following is NOT a typical phase in the VC investment \'J-curve\'?** A. Investment Phase B. Decline Phase C. Harvest Phase D. Growth Phase 3. **The concept of \"the bet\" in the expanded startup metaphor of the Jockey, Horse, and Racetrack primarily represents which of the following?** A. The personal risk taken by the startup founders. B. The investment made by an investor after evaluating the jockey, horse, and racetrack. C. The strategic risk to partners of the tech startup after testing the horse. D. The purchases made by the customer base for the startup\'s product. 4. **Which financial statement shows a company\'s operational efficiency and profitability over a period?** A. Balance Sheet B. Income Statement C. Cash Flow Statement D. Equity Statement 5. **The DIKW paradigm includes all the following except:** A. Data B. Information C. Knowledge D. Decision-making 6. **Which agreement is essential when two tech companies collaborate on a project and agree to share confidential information?** A. Mutual Non-Disclosure Agreement B. Licensing Agreement C. General Data Protection Regulation (GDPR) Agreement D. Cyber Security Agreement 7. **In the context of Knowledge Management, what differentiates \'Information\' from \'Data\'?** A. Information is less accurate but usually has categories embedded in it. B. Information is structured and contextualized data. C. Information is raw and unorganized making it more valuable than both data and knowledge. D. Information cannot be digitally stored but data can. 8. **In a tech startup, what is a common trigger for the need to review and possibly update the company\'s D&O Insurance coverage?** A. Hiring new employees who will be interacting with the C-suite. B. Launching a new Business Development campaign to find partners. C. Going through a funding round with Angels or Venture Capitalists D. Updating the company's Pitch Deck 9. **In employment contracts, which clause restricts employees from working with competitors for a certain period after their employment ends?** A. Invention Assignment Clause B. Non-Compete Clause C. Confidentiality Clause D. Arbitration Clause 10. **What type of insurance is mandatory in most states and provides benefits to employees suffering from work-related injuries or illnesses?** A. General Business Liability Insurance B. Workers' Compensation Insurance C. Product Liability Insurance D. Employment Liability Protection Insurance 11. **Which financial document is crucial for understanding the equity and debt structure of a tech startup?** A. Income Statement B. Cash Flow Statement C. Balance Sheet D. Statement of Retained Earnings 12. **What legal document should a tech startup require from an independent contractor to ensure the company retains ownership of any created intellectual property?** A. Non-disclosure Agreement B. Invention Assignment Agreement C. Non-compete Agreement D. Service Level Agreement 13. **Which type of insurance is specifically important for a tech startup involved in providing physical products, to cover claims related to product defects?** A. Commercial Property Insurance B. General Liability Insurance C. Product Liability Insurance D. Professional Indemnity Insurance 14. **Which of the following is a key outcome of project management in tech startups?** A. It ensures startups avoid managing risk so that employees can be free and clear to follow their own approach. B. It allows startups to limit communication to investors. C. It allows startups to align milestones and employee activity with company strategy. D. It allows startups to solely focus on immediate profits which is usually the right decision. 15. **Which is an example of applying \'Wisdom\' in the DIKW paradigm for a tech company?** A. Compiling a database of customer feedback B. Analyzing sales data to identify trends C. Using insights to predict future tech trends and guide strategic decisions D. Gathering raw user interaction data from a website 16. **In the context of a tech startup, what does the term \"At Will Employment\" imply?** A. Employment contracts cannot be terminated. B. Employees can only be terminated for cause. C. Either party can terminate employment at any time for any reason D. Employees in the Unites States have job security because of a "one-year cliff" provision. 17. **What is the significance of a term sheet in a startup\'s funding process?** A. It outlines the final legal obligations of investors. B. It is a binding agreement for investment terms. C. It specifies the startup\'s organizational structure. D. It sets forth the preliminary terms of an investment. **THIS IS THE END OF EXAM 3**