Safety Questions With complete
Solutions Latest Updated / ( Graded
A+)
Major Components or Elements (Terms Sheet) - - Correct Answers -- -Investment
"Pricing" (the numbers)
-Corporate "governance" document parameters
-Investment business fundamentals & responsibilities
-Future investor & equity rights
-Overall Board governance & voting
-Fully diluted Capitalization Table
Corporate "governance" document parameters (Terms Sheet) - - Correct Answers --
Equity Security Details to be reflected in the Articles of Incorporation (for C-Corp) or
Operating Agreement (for LLC)
Overall Board governance & voting (Terms Sheet) - - Correct Answers -- Details
"Type Security" entitled to vote on Specific Actions
Investment "Pricing" (Offering Terms):
(Terms Sheet) - - Correct Answers -- -Participating Investors & Amounts Listed
-Amount Capital Raised
-Pre-Money/Post Money Valuation
-Stock Option Pool
-Fully Diluted Capitalization Table
Corporate "Governance" Documents:
(Terms Sheet) - - Correct Answers -- -Dividends
-Liquidation Preference
-Voting Rights
-Protective Provisions (Requires Preferred Only)
-Mandatory Conversion for Initial Public Offering (IPO)
-Redemption Rights (basically a "Put Option")
Protective Provisions -
(Terms Sheet) - - Correct Answers -- *Requires Preferred Only*
-Change Bylaws/Articles of Incorporation/Operating Agreement
-Liquidate, dissolve, merger, etc.