MHR 322 EXAM 2 PREP QUESTIONS
AND ANSWERS 100% PASS
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 - 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
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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
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
in the vide "to raise money or not part 2" the speaker points out that one of the key factors that
helped them raise venture capital was - ANS they got funding from an angel investor who
was well connected in the industry and with the VC firms
when a company uses debt financing, it receives capital in exchange for a promise to repay the
capital, usually with interest payments as well - ANS true
according to the art of startups by bhide, most new ventures in the USA raise money from
venture capital firms - ANS false
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
AND ANSWERS 100% PASS
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 - 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
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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
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
in the vide "to raise money or not part 2" the speaker points out that one of the key factors that
helped them raise venture capital was - ANS they got funding from an angel investor who
was well connected in the industry and with the VC firms
when a company uses debt financing, it receives capital in exchange for a promise to repay the
capital, usually with interest payments as well - ANS true
according to the art of startups by bhide, most new ventures in the USA raise money from
venture capital firms - ANS false
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
