Questions from Entrepreneurial Finance


Q: Briefly describe how securities are traded on an organized stock exchange such

Briefly describe how securities are traded on an organized stock exchange such as the New York Stock Exchange.

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Q: Indicate some of the differences between the NASDAQ’s National Market System and

Indicate some of the differences between the NASDAQ’s National Market System and SmallCap listing requirements.

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Q: What discount rates are typically used for development- stage, startup

What discount rates are typically used for development- stage, startup-stage, survival-stage, and early-growth-stage ventures?

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Q: Describe some of the preparations that a venture can undertake that may

Describe some of the preparations that a venture can undertake that may increase the possibility of IPO success.

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Q: Comment on Tesla’s trip from incorporating in 2003 to its IPO in

Comment on Tesla’s trip from incorporating in 2003 to its IPO in 2010. What impact do you think the IPO had on competitors in the electric car market?

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Q: What are unicorns? How might their exit values be impacted when

What are unicorns? How might their exit values be impacted when they go public?

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Q: Describe how the relative value method is used to value a firm’s

Describe how the relative value method is used to value a firm’s equity.

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Q: What is a systematic liquidation of a venture? What are some

What is a systematic liquidation of a venture? What are some of the advantages and disadvantages of a systematic liquidation?

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Q: What is an employee stock option plan (ESOP)? How is

What is an employee stock option plan (ESOP)? How is an ESOP used to buy out a venture?

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Q: Describe the terms (a) “control premium” and

Describe the terms (a) “control premium” and (b) “illiquidity discount” when discussing possible external or outside buyers of a venture.

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