Question 1;A foreign stock market that caters to small companies is:Answer;AIM.;AMX.;the NASDAQ.;DPOX.;2 points;Question 2;Most companies that make Rule 5 offerings raise between $1 million and:Answer;$50 million.;$10 million.;$5 million.;$20 million.;2 points;Question 3;The "wait to go effective" is the time period when:Answer;the SEC registration statement is being prepared.;the underwriter decides what regulation to file under.;the firm prices the stock for the offering.;the company is waiting for SEC approval after filing the registration statement.;2 points;Question 4;In a public offering, the underwriter:Answer;advises the owner as to the best structure of the business going into the sale.;serves as an adviser and consultant to the small business in preparing the registration statement for the SEC.;is bound to the offering until it is executed.;is listed as one of the officers of the company.;2 points;Question 5;Regulation A is best suited when a company is at the ________ stage.Answer;startup;early;expansion;later;2 points;Question 6;Which of the following is the most popular rule of Regulation D exemptions?Answer;501;502;503;504;2 points;Question 7;When filing with the SEC, the initial registration statement:Answer;prohibits a "road show.;is filed without share price, proceeds, or commissions listed.;signals the time to sign the formal underwriting agreement.;is generally accepted without corrections by the SEC.;2 points;Question 8;The single most important ingredient in making a successful public offering is:Answer;choosing a capable underwriter.;negotiating a favorable letter of intent.;preparing a suitable registration statement.;filing Regulation D with the SEC.;2 points;Question 9;The two factors that make a deal attractive to venture capitalists are:Answer;effective marketing strategies and networking opportunities.;high returns and a convenient (and profitable) exit strategy.;high returns and networking opportunities.;a convenient and (profitable) exit strategy and effective marketing strategies.;2 points;Question 10;The largest single source of external equity capital for small businesses is:Answer;angels.;venture capitalists.;Small Business Administration loans.;commercial bankers.;2 points;Question 11;When structuring a deal with an "angel," an entrepreneur should remember that:Answer;angels" tend to prefer a controlling interest in the business.;the deal needs an annual return of 60?75%.;angel" money is patient, often waiting seven or more years to cash out.;they prefer to earn their returns through dividends and interest.;2 points;Question 12;Under a ________ agreement, the underwriter agrees to purchase all of the shares in a company's public offering and then resells them to investors.Answer;best effort;lock-up;final price;firm commitment;2 points;Question 13;When taking a company public, investment bankers look for:Answer;a leading position in a stable market.;3 to 5 years of audited financial statements.;a strong record of revenues.;a moderate growth rate.;2 points;Question 14;The most common source of equity funds used to start a small business is:Answer;private investors or "angels.;loans from commercial banks.;the entrepreneur's pool of personal savings.;public stock issues.;2 points;Question 15;The largest cost in a public stock offering is:Answer;printing expenses.;filing fees with the SEC.;the underwriter's commission.;legal fees.
Paper#31049 | Written in 18-Jul-2015Price : $17