Venture capitalist the right to buy shares

Assignment Help Operation Management

Reference no: EM132163276

1. Preemption rights give a Venture Capitalist the right to buy shares in future rounds of financing to preserve their current interest in the company.

True

False

2. Venture capitalists will typically conduct an investigation of the founders and of the company to assure themselves that there has not been and there is not currently any illegal activity being conducted that could damage the company.

True

False

3. Term sheets are used to work out the natural financial and control tensions that exist between founders and venture capitalists. The specifics of a term sheet will vary from deal to deal.

True

False

4. Preferred stock offers investors protections relative to the owners of common shares such as liquidation preferences and anti-dilution protection.

True

False

5. The sole objective of a term sheet from the investor’s point of view is to maximize their upside in the event of an exit.

True

False

Reference no: EM132163276

Questions Cloud

Ties the employee to the long-term success of the venture : An option pool is used by founders to make payments to employees. Using options conserves cash and ties the employee to the long-term success of the venture.

Successful partnership at ford-mazda : While international joint ventures among auto manufacturers make great sense, often they don’t make great profits.

Did the bank have perfected security interest in property : Elmer and Pam Strong leased and operated service stations. Did the bank have a perfected security interest in the property?

Labor-cost savings of lag-the-market strategy : If you meet market, paying average will generally not attract top talent and in addition, you will not have the labor-cost savings of a lag-the-market strategy

Venture capitalist the right to buy shares : Preemption rights give a Venture Capitalist the right to buy shares in future rounds of financing to preserve their current interest in the company.

Is Central liable to GECC : Duchow quickly spent the money and had no other assets. Is Central liable to GECC? What is the argument for Central?

What type of marketing orientation : “'Build a better mousetrap, and the world will beat a path to your door” is an example of what type of marketing orientation?

Investors and founder is legally binding agreement : The term sheet between an investors and founder is a legally binding agreement.

Products with high demand uncertainty usually result : Which of the following is not an attribute of responsive supply chains? Products with high demand uncertainty usually result in.

User Account

All Pages