ANSWER:
d
80. Which of the following is considered to be an agency conflict?
a.
owner–manager conflict
b.
stockholder–manager conflict
c.
stockholder–debtholder conflict
d.
owner–debtholder conflict
ANSWER:
a
81. Which of the following possible conflicts of interest is usually minimized through the use of equity incentives?
a.
owner–manager conflict
b.
owner–employee conflict
c.
manager–employee conflict
d.
owner–debtholder conflict
ANSWER:
a
82. Which of the following possible conflicts of interest increases in divergence at venture gets close to bankruptcy?
a.
owner–manager conflict
b.
owner–employee conflict
c.
manager–employee conflict
d.
owner–debtholder conflict
ANSWER:
d
83. Which of the following is not a life cycle stage of a successful venture?
a.
development stage
b.
startup stage
c.
survival stage
d.
declining stage
ANSWER:
d
84. Which of the following does not describe activity during the startup stage of a venture's life cycle?
a.
the venture's organization
b.
the venture's development
c.
operating cash flows are generated
d.
initial revenue model is put in place
ANSWER:
c
85. Which stage of a venture's life cycle is best characterized by the period when revenues start to grow and when cash flows from operations begin covering cash outflows?
a.
survival stage
b.
startup stage
c.
rapid-growth stage
d.
early-maturity stage
ANSWER:
a
86. Which of the following is not a major source of startup financing for a venture's startup stage?
a.
the entrepreneur's assets
b.
business operations
c.
family and friends
d.
venture capitalists
ANSWER:
b
87. Obtaining bank loans, issuing bonds, and issuing stock is characteristic of which type of financing during a venture's life cycle?
a.
seed financing
b.
second-round financing
c.
mezzanine financing
d.
seasoned financing
ANSWER:
d
88. During a venture's rapid-growth stage, funds for plant expansion, marketing expenditures, working capital, and product or service improvements is obtained through:
a.
seed financing
b.
second-round financing
c.
mezzanine financing
d.
liquidity-stage financing
ANSWER:
c
89. Founder and venture investor shares that are sold to the public after the initial public offering to the public is called a:
a.
secondary market transaction
b.
secondary stock offering
c.
venture offering
d.
bridge loan
ANSWER:
b
90. Which of the following advise and assist corporations on the type, timing, and costs of issuing new debt and equity securities?
a.
brokerage firms
b.
venture law firms
c.
specialist firms
d.
investment banking firms
ANSWER:
d
91. Which stage in the venture life cycle is characterized by creating and building value, obtaining additional financing, and examining opportunities?