MAN 320F - Test 3/FINAL Questions With Solutions 100% Correct
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Course
MAN 320F
Institution
MAN 320F
MAN 320F - Test 3/FINAL Questions With
Solutions 100% Correct
Start up companies usually FAIL
What are the 3 top sources of start up funding? Venture Capital, State Funds, Angel
Investors
What is the "napkin idea" stage of investment? This means that it is the earliest stage of
investment ...
MAN 320F - Test 3/FINAL Questions With
Solutions 100% Correct
Start up companies usually FAIL
What are the 3 top sources of start up funding? Venture Capital, State Funds, Angel
Investors
What is the "napkin idea" stage of investment? This means that it is the earliest stage of
investment possible, the seed stage
The early stage of investment means that the early stage of investment means that it may
be early on in a company but it still be making some revenue
What is important to note about the seed/early stage? -this is the preferred
investment/company stage
-means invest at the very beginning
Angel investors like to invest "in their backyard", what does this mean? this means that
they like to invest on things that they can easily check on and have a close look at when need be
, MAN 320F - Test 3/FINAL Questions With
Solutions 100% Correct
What percentage of time do investors think they are not getting a good deal? 57% of the
time
What is an important idea about investment? its not what you start with, its what you end
with
What is the track record in investments? 40% of deals fail, 40% of deals do ok but nothing
great, and 20% of deals make up for the other 80% that don't do that well
Where do I get the money to invest? -pension funds
-insurance companies
-endowments
-foundations
-high net worth individuals
What are equity investments made to fund? Equity investments are made to fund the
launch, early development, or expansion of a young company
, MAN 320F - Test 3/FINAL Questions With
Solutions 100% Correct
Offsetting the high risk, investors _____ have the expectation of higher than average
return on investment
Who will venture capitalist fund? an entrepreneur
An entrepreneur is someone who assumes the financial risk of beginning and managing a
new business
What does a "perfect" investment opportunity look like? -an experienced/proven
management team
-a great idea/concept that is proprietary
-something that cannot be duplicated
-a product or service that 7 billion humans will buy
-a great rate of return on investment
-intellectual property that is protected by patents or trademarks
A perfect investment does not exist
, MAN 320F - Test 3/FINAL Questions With
Solutions 100% Correct
What are the 3 laws of business? 1- it will always cost more than you thought it would
2- It will always take longer than you anticipated
3- things change continuously
What really matters in business and investment? MARKET OPPORTUNITY
How do you find the right venture capital?? -need to talk to allied professionals such as
lawyers, accountants, and entrepreneurs (its not just what you know but WHO you know)
-find the venture capitalist who have invested or specialized in your industry
-many large corporations have dedicated VC funds to invest in companies strategic to their core
business
What do we need to prepare for the VC? -an honest business plan with risks, challenges,
opportunities, and issues
-what key members you need to hire and where they will come from
-clear strategic goals and what you plan on doing to achieve those goals
-potential customers
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