Many venture capitalists:
A. prefer common stock in exchange for their investment.
B. manage the liquidation of failed ventures.
C. intend to cash out after five to seven years.
D. insist on voting rights during stockholder meetings.
Answer: C
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The city of Chicago is creating a database of its employees. Which one of the following fields would be least likely to have a default value?
A) state B) ZIP Code C) city D) position or office
Pam was a successful engineer at TruTech. She recently took a job as a manager. While she appreciates the raise in pay, and the company was glad for the opportunity to reward her performance, it is quite likely that TruTech promoted her out of something she was good at doing and into a position for which she may not be well suited.
Answer the following statement true (T) or false (F)
The spot exchange rate in New York is 1.600 dollars per British pound. The 360-day forward exchange rate is
1.680 dollars per pound. The one-year interest rate in Great Britain is 2% while the one-year interest rate in the United States is 4%. a. If the interest rate in Great Britain remains at 2%, what should the interest rate be in the United States according to the interest rate parity theory? b. An American investor with $40,000 decides to take advantage of the differences in rates. Ignoring transaction costs, how can the American investor exploit the disequilibrium? Compare the amount of money the investor will have at the end of the year if he or she invests in one-year U.S. securities versus one-year British securities.
Which of the choices below is FALSE?
A) When issuing a putable bond, the firm anticipates that interest rates will rise over the life of the bond. B) When issuing a callable bond, the firm anticipates that interest rates will fall over the life of the bond. C) When issuing a callable bond, the firm anticipates that interest rates will rise over the life of the bond. D) A putable bond is essentially the reverse of a callable bond.