Which of the following is NOT a reason why an investor would choose to invest in new and growing firms as a limited partner in a venture capital firm rather than making those investments directly by themselves?
A) Venture capital firms use their control of the companies they invest in to protect those investments.
B) The investments of venture capital firm are more diversified than the investments of a single individual.
C) A venture capital firm generally has a wide range of expertise among its general partners.
D) The investor will have a direct say in how the companies that the venture capital firm funds will be run.
Answer: D
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Which of the following statements is true of the geographic structure?
A) The geographic structure assigns operational responsibility for geographic areas of the world to the corporate headquarters. B) The most common appearance of this structure is in companies with closely related product lines that are sold in similar end-use markets around the world. C) The line managers of the regional centers are given responsibility for worldwide planning and control. D) Each area of the world–including the "home" or base market–is considered organizationally different and unique.
Zeta Technologies has the following projections. It has no non-operating assets. Calculate Zeta's intrinsic value of equity using the FCFE model. Current year Year 1 Year 1 Year 3 FCF NA $1,000 $1,200 $1,248 Total debt $3,000 $3,900 $4,290 $4,462 Interest rate on debt 6% 6% 6% 6% Tax rate 25% 25% 25% 25% Long-term growth rate 4% Required return on equity 9%
A. $21,165 B. $23,282 C. $25,610 D. $28,171 E. $30,988
Lori Watts favors the traditional IRA over the Roth IRA. What advantage does the traditional IRA have over the Roth?
A) The earnings are tax-exempt, unlike a Roth IRA. B) Contributions are likely to be fully or partially tax deductible. C) It saves tax money for education. D) There are no penalties for early withdrawals.
Which of the following data-mining techniques searches for patterns and correlations in large data sets?
A) Case reasoning B) Rule discovery C) Signal processing D) Neural nets