FIN 4310 Exam Questions And Correct Answers 100% Verified.
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Course
FIN.
Institution
FIN.
Find your hometown's nearest Angel Network. What is their name and an idea of their investment preferences? - correct answer - North Texas Angel Network focuses on accessing a wide range of industry expertise across their network in assessing investment opportun...
Find your hometown's nearest Angel Network. What is their name and an idea of their investment
preferences? - correct answer - North Texas Angel Network focuses on accessing a
wide range of industry expertise across their network in assessing investment opportunities
What are three of the sources of entrepreneurial financing discussed by Gregson? - correct answer
1. 3F: family, friends, fools
2. IPO
3. PE
How does Information Asymmetry present itself in venture investing? - correct answer
- Information asymmetry: The entrepreneur's ability to withhold or misrepresent important information
from the investor or where the investor is constrained from directly observing the entrepreneur or
team's activities or capabilities. This makes it difficult for the investor to ascertain the actual quality and
potential value of the business, technology, or product.
For each of the below, select the scenario that presents the highest potential for Moral Hazard: - correct
answer - *Privately held startup* vs. Publicly traded company
- Founder owns 90% of equity vs. *owns 10% of equity*
- Startup with a *robust advisory board* vs. Startup with a small board of directors
- Startup with a single major investor vs. *several unrelated small investors*
What are three ways Information Asymmetries may be reduced in entrepreneurial financing? - correct
answer 1. Contract deal terms
2. Appropriate incentives and fair equity ownership terms from investors
3. Trust and open, ongoing communication between entrepreneur and BA investor
Define Kawasaki's 10-20-30 rule. - correct answer - You should use 10 slides in 20
minutes with a minimum of 30-pt text
, List Kawasaki's ten slides. - correct answer 1. Title
2. Problem and Opportunity
3. Value Prop
4. Underlying Magic
5. Business Model
6. Go-to-Market Plan
7. Competitive Analysis
8. Management Team
9. Financial Projections and Key Metrics
10. Current Status, Accomplishments to Date, Timeline, Use of Funds
What three things should the 3-5-year projections help a VC understand? - correct answer
1. Scale
2. Assumptions of the business model
3. How much capital
What fundraising materials does F&M recommend/encourage? - correct answer -
Short description of the business
- Executive summary
- Presentation
- Some may ask for a business plan
What are Sahlman's four critical factors for new ventures? - correct answer 1.
People
2. Opportunity
3. Context
4. Risk and Reward
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