Venture capital (VC) firms are pools of private capital that typically invest in small, fast-growing companies that can't raise funds through other means. In exchange for this financing, VCs receive a share of a company's equity, and the founders of the firm typically stay on and continue to manage the company. A VC firm wants management to focus on improving ,while the managers may also act to increase VC investments have two typical components: (1) managers maintain some ownership in the company and often earn additional equity if the company performs well; (2) VCs demand seats on the company's board. incentiva aners with the incentives of owners

A venture capitalist invests primarily his/her own money in a company, seeking a substantial return. true or false?

Are the following statements true or false? Please give a brief explanation.   (a) Consider a firm A which has a lot of cash. A poison pill in the corporate charter of firm A is designed to protect shareholders of firm A because it makes inefficient acquisitions by the management of firm A more difficult.   (b) A limited partner in a private equity fund typically has voting rights regarding investment decisions.  (c) When a venture capital fund invests in a portfolio company, the venture capitalist typically requires a carry of 20% of the profit made by the portfolio company.   (d) A distressed debt fund typically buys all equity stakes of firms with high leverage.

1. Interactions between financial market participants Financial markets facilitate the transfer of excess funds from those who have them to those who need them. In the following table, determine whether each financial market participant is a surplus unit or deficit unit. Financial Market Participant A state that is constantly running a budget deficit A firm that issues equity securities to expand operations A consumer that purchases equity securities from a new tech company Surplus Unit Deficit Unit S An angel investor Suppose Moonlit Productions needs to raise money to finance its new manufacturing facility, but their CFO does not want to part with any of the firm's equity. In this case, Moonlit Productions would likely issue securities to obtain the funding. Which of the following are ways that Moonlit Productions could obtain funds to finance the expansion of its operations, given its stated preference in the previous question? Check all that apply. Issue common stocks Issue…

Which of the following statements is INCORRECT? OA. The primary financial goal of the business firm is to maximize the wealth of the firm's owners. B. A firm's stock price depends on the magnitude of cash flows the firm will generate, the timing of cash flows, and the risk associated with these cash flo OC. Maximization of owner value and societal benefits are always consistent. OD. None of the above

Capital Structure involves, among other things, the amount of debt and equity a company holds. Once again, given the current economic environment, what is an appropriate amount of debt (leverage) that some companies have or should have these days with all the uncertainty surrounding the markets and economy? what is an example of a company experiencing such leverage issues;

Corporate Venture Capital Funds operate on a different and often longer investment time frame than venture capital funds that have multiple limited partners because corporate venture capital funds are willing to hold investments much longer as their investments return strategic value to the parent company (sole limited partner).   True   False   Venture Capital with many limited partners must consider that the limited partners are expecting to receive cash compensation between 7-10 years after their initial investment. This means the General partner must make investments that are expected to go public or be acquired in this time frame.   True   False

Explain

2. Share holder wealth maximization theoretically is theatrically the most sound but practically unattainable objective of business firms. Do you agree with this statement? Give reasons for your answer

I know the bartleby guidelines but I need both questions. I will upvote the answer