Page |1
MHR 322 Exam 2 Prep. Questions and
Correct Answers/ Latest Update / Already
Graded
equity investors in early stage companies might expect return rates as
high as 50-60% per year
Ans: true
venture capital firms are generally investing their own money
Ans: false
one of the major advantages of crowdfunding is that it allows the
entrepreneur to work directly with product or distributor instead of
having to pitch idea to potential customers
Ans: false
venture capital firms only invest in ventures that have potential to
generate very high returns
Ans: true
in the video "to raise money or not part 1" the speaker identifies a
significant advantage of bootstrapping as
All rights reserved © 2025/ 2026 |
, Page |2
Ans: the flexibility to try lots of projects, seeing what worked,
building and launching products quickly, and improving based
on feedback
because an equity investor is a part-owner of the business, the investor
may have a role in management / decision-making
Ans: true
when a company uses equity financing, it gives up partial ownership of
the company in exchange for investor capital
Ans: true
according to the art of startups by bhide, offering high-value products
and services is a good idea because it
Ans: generates enough profit for the firm to use for direct
selling, rather than rely on indirect marketing or general
advertising
venture capital firms do what no other funding entity can do
Ans: invest large amounts of capital in high-risk ventures that
will take a long time to pay out
All rights reserved © 2025/ 2026 |
, Page |3
crowdfunding is a financing strategy where an entrepreneur uses an
online platform to raise capital to fund the development or production
of a new product or artistic creation
Ans: true
in her video on bootstrapping, Heidi roizen comments that
bootstrapping is especially valuable because
Ans: it's the best assurance that you're going to create
shareholder value and have successful business to generate
profit
venture capital firms are primarily driven by financial returns; angel
investors may have personal interest in specific technology or venture
in addition to wanting financial return
Ans: true
according to Mullins article on customer cash, entrepreneurs can use a
scarcity model by
Ans: regularly changing the product specification to motivate
consumers to make purchasing decision quickly
All rights reserved © 2025/ 2026 |
MHR 322 Exam 2 Prep. Questions and
Correct Answers/ Latest Update / Already
Graded
equity investors in early stage companies might expect return rates as
high as 50-60% per year
Ans: true
venture capital firms are generally investing their own money
Ans: false
one of the major advantages of crowdfunding is that it allows the
entrepreneur to work directly with product or distributor instead of
having to pitch idea to potential customers
Ans: false
venture capital firms only invest in ventures that have potential to
generate very high returns
Ans: true
in the video "to raise money or not part 1" the speaker identifies a
significant advantage of bootstrapping as
All rights reserved © 2025/ 2026 |
, Page |2
Ans: the flexibility to try lots of projects, seeing what worked,
building and launching products quickly, and improving based
on feedback
because an equity investor is a part-owner of the business, the investor
may have a role in management / decision-making
Ans: true
when a company uses equity financing, it gives up partial ownership of
the company in exchange for investor capital
Ans: true
according to the art of startups by bhide, offering high-value products
and services is a good idea because it
Ans: generates enough profit for the firm to use for direct
selling, rather than rely on indirect marketing or general
advertising
venture capital firms do what no other funding entity can do
Ans: invest large amounts of capital in high-risk ventures that
will take a long time to pay out
All rights reserved © 2025/ 2026 |
, Page |3
crowdfunding is a financing strategy where an entrepreneur uses an
online platform to raise capital to fund the development or production
of a new product or artistic creation
Ans: true
in her video on bootstrapping, Heidi roizen comments that
bootstrapping is especially valuable because
Ans: it's the best assurance that you're going to create
shareholder value and have successful business to generate
profit
venture capital firms are primarily driven by financial returns; angel
investors may have personal interest in specific technology or venture
in addition to wanting financial return
Ans: true
according to Mullins article on customer cash, entrepreneurs can use a
scarcity model by
Ans: regularly changing the product specification to motivate
consumers to make purchasing decision quickly
All rights reserved © 2025/ 2026 |
