UNIT 4 – CHALLENGE 4.2: OBTAINING CAPITAL: METHODS OF LONG-TERM FINANCING
1
Which of the following types of financing is typical for a business in its growth stage?
A.)
Issuing bonds
B.)
Equity from an IPO
C.)
Seed money
D.)
Bank loans
2
Which of the following is true of venture capital?
A.)
Venture capital investors receive a return on their investment if a company is either
purchased or issues a successful IPO.
B.)
Reliance on proven and reliable technology is the most important measure that venture
capitalists use to evaluate potential investments.
C.)
Venture capital is a form of debt, meaning investors lend capital to a company for a
period of time.
D.)
Venture capital investments typically last for 10-15 years.
3
1
Which of the following types of financing is typical for a business in its growth stage?
A.)
Issuing bonds
B.)
Equity from an IPO
C.)
Seed money
D.)
Bank loans
2
Which of the following is true of venture capital?
A.)
Venture capital investors receive a return on their investment if a company is either
purchased or issues a successful IPO.
B.)
Reliance on proven and reliable technology is the most important measure that venture
capitalists use to evaluate potential investments.
C.)
Venture capital is a form of debt, meaning investors lend capital to a company for a
period of time.
D.)
Venture capital investments typically last for 10-15 years.
3
