MHR 322 Exam 2 Prep Questions and Answers | Guaranteed Pass 2026

MHR 322 Exam 2 Prep Questions and Answers | Guaranteed Pass 2026 Equity investors in early-stage companies might expect return rates as high as 50-60% per year - answer true venture capital firms are generally investing their own money - answer-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 - answer-false venture capital firms only invest in ventures that have potential to generate very high returns - answertrue in the video "to raise money or not part 1" the speaker identifies a significant advantage of bootstrapping as - answer-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 - answer-true when a company uses equity financing, it gives up partial ownership of the company in exchange for investor capital - answer-true according to the art of startups by bhide, offering high-value products and services is a good idea because it - answer-generates enough profit for the firm to use for direct selling, rather than rely on indirect marketing or general advertisingventure capital firms do what no other funding entity can do - answer-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 - answer-true in her video on bootstrapping, Heidi roizen comments that bootstrapping is especially valuable because - answer-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 - answer-true according to Mullins article on customer cash, entrepreneurs can use a scarcity model by - answerregularly 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 - answer-they got funding from an angel investor who was well connected in the industry and with the VC firms