Shares of founders should founders decide to leave company

Assignment Help Operation Management

Reference no: EM132163266

1. A term sheet will address what happens to the shares of founders should founders decide to leave the company.

True

False

2. A Drag-Along clause in a term sheet will address the rights of shareholders who control a majority of shares relative to shareholders who control a minority of shares.

True

False

3. When a subsequent round of financing takes place at a lower price per share than previous round of financing; existing shareholders would suffer from the dilution of their ownership stake. If the existing shareholders required a clause in the terms of their financing that would obligate the company to offer them additional shares when subsequent shares are issued at a lower price than the paid is an example of an anti-dilution clause.

True

False

4. Use the “YIELD” function in Excel to find the yield to maturity of a bond with the following characteristics. The yield to maturity on this bond is less than 3.6%.

Settlement 5/17/2018

Maturity 5/17/2028

Rate 5%

Price 110

Redemption 100

Frequency 2

Basis 0

True

False

5. An example of a restrictive covenant in a term sheet would be one that prevents founder from leaving the business to start another business for a set period of time and/or while the founder owns a certain percentage of the company.

True

False

Reference no: EM132163266

Questions Cloud

Supply source with inflexible supply capacity leads : Salt, compared to electronic products, will have a lower implied demand uncertainty because salt has. A supply source with inflexible supply capacity leads to

Hybrid method of SDLC for technology : Some organizations choose a hybrid method of an SDLC for technology and information systems.

Companies engage in partner-relationship management : In planning their marketing functions, companies engage in partner-relationship management, which is the process of ________.

Explain the characteristics of effective control system : Identify and explain the characteristics of an effective control system?

Shares of founders should founders decide to leave company : A term sheet will address what happens to the shares of founders should founders decide to leave the company.

Stereotypes and barriers to critical thinking estimated time : Stereotypes and Barriers to Critical Thinking Unit 2 Key Assignment: Stereotypes and Barriers to Critical Thinking Estimated time to complete.

The software development life cycle methodology : The software development life cycle (SDLC) methodology phase that comprises developing the preliminary and detailed configurations,

Relationship between lead time and inventory turns : In the order up-to model, what is the relationship between lead time and inventory turns?

What is the current size of the market : What is the current size of the market? How much of the current market size can you capture (i.e. what percent)?

User Account

All Pages