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F317 Final Exam Paper

Satisfactory Essays

F317 / Final Exam / Study Guide 50 Questions / Multiple Choice & True & False Types of Entities (and their characteristics) - LLC - S-Corp - C-Corp Types of Intellectual Property - Patents - Trademarks - Trade Secrets - Copyrights Before Venture Capital - Bootstrapping - Angel Investing - Family & Friends Types of Exit Strategies - Acquisition - Shearing - IPO The Equity Bible - Valuations: Example pg. 41 This is an appraisal or estimate of the worth of the business The chances of a high-potential venture succeeding in Silicon Valley is 1 in 10,000 Rate of Return: express as a percentage of the total amount invested Funding risk: probability of loss from higher funding costs …show more content…

- Issuing Equity Figuring out how to split founder’s shares between the team is perhaps the biggest decision you’ll make early in the life of your company. Equity discussions need to take place early in order to avoid harder, more emotion fueled discussions later. Founders that intend to drive the business long-term should receive the larger chunk of the equity. Part-time founders and non-performing founders should expect very little. Early cash is valuable. Vesting: the accrual of non-forfeitable rights to ownership over a pre-determined period of time. Pro-rata: proportionate allocation of a quantity on the basis of one common factor. Repurchase Agreement: agreement allowing the seller to buy back ownership at a later date for a nominal amount. - Types of Securities Debt capital: borrowing someone else’s money to finance the business under the condition that the money plus accrued interest must be paid back in full by an agreed upon date in the future Equity Capital: represents the risk capital staked by investors through the purchase of a company’s stock. De-risking: process of creating enough certainty in your company such that it becomes an attractive opportunity to a large pool of investors. - Waterfall Scenarios - Types of Anti-Dilution and Calculating the Same - Issuing Option Pools - Pre & Post Money Valuations - Needs and Concerns of Investors Required Rate of Return: The earlier the

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