Questions from Entrepreneurial Finance


Q: How would one expect P/E ratios to vary with a

How would one expect P/E ratios to vary with a venture’s risk and growth opportunities?

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Q: What are the common ways to estimate a terminal value for a

What are the common ways to estimate a terminal value for a venture?

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Q: What is a professional venture capitalist? How does this occupation differ

What is a professional venture capitalist? How does this occupation differ from that of an angel investor?

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Q: What is meant by the terms (a) lead investor

What is meant by the terms (a) lead investor (b) SLOR (c) term sheet?

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Q: Why should entrepreneurs care what pressures venture capitalists face in carrying out

Why should entrepreneurs care what pressures venture capitalists face in carrying out their professional money management (intermediation) function?

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Q: Is the compensation paid to venture capitalists (e.g.

Is the compensation paid to venture capitalists (e.g. 2% management fee and 20% carried interest) reasonable? What are a fund’s investors buying with this compensation?

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Q: What was the early role of the Small Business Administration (SBA

What was the early role of the Small Business Administration (SBA) in fostering venture investing?

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Q: Describe the development of professional venture investing in the 1960s, 1970s

Describe the development of professional venture investing in the 1960s, 1970s, and early 1980s.

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Q: How is the current ratio calculated and what does it measure?

How is the current ratio calculated and what does it measure? How does the quick ratio differ from the current ratio?

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Q: What has happened to professional venture investing since the mid-1990s

What has happened to professional venture investing since the mid-1990s?

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