Question

PLEASE ANSWER CORRECT RESPONSE 1.Why are accredited investors allowed to invest in any company? A. They...

PLEASE ANSWER CORRECT RESPONSE

1.Why are accredited investors allowed to invest in any company?

A. They need less protection

B There is an assumption of competency

C We want rich people to get richer

D A and B

E All of the above

2.People who invest their own money do not have what?

A asset allocation

B risk factors

C fiduciary duty

D common sense

3.A retiree gives money to an institutional investor and asks the investor to only invest in high risk investments. The investor does not have access to the top performing VC funds, however the investor is required by to comply with the requests of the retiree. The investor has no option but to invest in the low performing funds. The retiree’s capital is lost on a bad investment in "Sniff: The Tinder for Dogs."
Why is the investor required to comply with the requests of the retiree?

A The investor is unskilled at investing

B the investor wants to generate returns

C The investor has adverse interest

D The investor has duty of obedience

4.A retiree gives money to an institutional investor and asks the investor to only invest in high risk investments. The investor does not have access to the top performing VC funds, however the investor is required by to comply with the requests of the retiree. The investor has no option but to invest in the low performing funds. The retiree’s capital is lost on a bad investment in "Sniff: The Tinder for Dogs."
What is this an example of what?

A. Unintended consequences

B Socialism

C Capitalism

D Tragedy of commons

5.What is not a good reason to raise money from a VC?

A Expand your network

B Retain control of your company

C use money to grow faster

D Brag about your fundraise to help you hire

6. You own $30 of stock in Twitter. You fail to call into the annual stockholder meeting and vote on the company’s corporate governance issues because you had a school project due that day, which was more important to you than the stockholder meeting. What is this called?

A Mismanagement

B Rational apathy

C Lack of millionaire mindset

D All of the above

7.You are an entrepreneur pitching an interesting market opportunity in the food industry to an angel investor. Specifically, the opportunity is to sell apple-based products. The market opportunity is worth $50M.
The investor asks “What is going to stop Apple from pursuing this opportunity?”
Which is a NOT good response?

A Apple is a $1.3T company. The opportunity is too small for Apple

B It would take Apple a long time to decide to get into Apples

C Apple's existing stakeholders have an interest in Apple staying in technology

D Apple does not have a IP in the apple industry

Homework Answers

Answer #1

1.A They need less protection

Accredited investors are those that have the authority to deal in those securities which general public is not allowed to invest in.These investors need less protection. as they are thought to be more financially stable.

2.C fiduciary duty

When investors invest their own money they do not have fiduciary duty as fiduciary duty involves an obligation of one party to act in a manner which is in the best interest of another party.

3.D The investor has duty of obedience

The investor must act in the favor of the person or institution it is working for,it is its duty of obedience to comply with the goals of the person or he or she is working for.

4.A Unintended consequences

Unintended consequences are not intentionally made as investor had no other option but to invest in low performing funds,thus it is an example of unitended consequences.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.Which of the following statement is not true about interest rate risk? (Only one correct answer.)...
1.Which of the following statement is not true about interest rate risk? (Only one correct answer.) Select one: a. Bond prices are negatively related to interest rate movements. b. Lower coupon bonds have lower interest rate risk. c. Long term bonds have higher interest rate risk than short term bonds. d. Interest rate risk is the uncertainty of how the bond price will change following the interest rate changes. 2.Which one of the following statements best describes two mutually exclusive...
The company estimates that its cost of capital is 15%. It is considering whether to invest...
The company estimates that its cost of capital is 15%. It is considering whether to invest in Shining Zambian, which has the following cash flows and will make the decision on the basis of the Net present value of the project: Estimated Cash Flows of the Project of Shining Zambian Limited Year Cash flows in (K’ Millions) 0 (100,000) 1 50,000 2 30,000 3 70,000 4 20,000   Note: Zambians abroad investments hopes to recoup its investment and payback any amounts...
Q 1 answer the problem A-F a You have $100 to invest. You can buy a...
Q 1 answer the problem A-F a You have $100 to invest. You can buy a 3 year CD that pays 7% interest a year. What is the vaue of the CD at the end of the 3 years b You want to put money in the stock market todayto pay for your child's college costs. She will be going to to college in 18 years and you want to have $250,000 saved by then. You expect to earn 8%...
PLEASE ANSWER THEM ALL, WILL GIVE THUMBS UP 1) Which Statement is True? a) ABC Corp....
PLEASE ANSWER THEM ALL, WILL GIVE THUMBS UP 1) Which Statement is True? a) ABC Corp. has a return on investment (ROI) of 12% and a weighted average cost of capital (WACC) of 11%, while XYZ Corp. has an ROI of 10% and a WACC of 8%. In this situation, XYZ is performing better than ABC because XYZ is generating a higher Economic Value Added (EVA) b) If you were super rich and had a huge portfolio of stocks that...
1.    When a company goes bankrupt, the maximum that can be lost by an investor protected...
1.    When a company goes bankrupt, the maximum that can be lost by an investor protected by limited liability is: a. the amount of the investor’s personal wealth b.   the amount necessary to pay the company’s debts c. the amount of profit on the investment d. the amount of the initial investment 2. Which of the following investment criteria doesn’t take the time value of money into account: a. Discounted payback period b.   Net present value c.   Internal rate of...
1. What is the most important aspect of any phlebotomy procedure? Why? (Explain in 8-10 sentences)...
1. What is the most important aspect of any phlebotomy procedure? Why? (Explain in 8-10 sentences) 2. Explain the reasoning behind preparing the patient before you wash your hands and put on gloves. (Explain in 10 sentences) 3. Explain why the median cubital vein is the first choice for venipuncture. (Explain in 8-10 sentences) 4. Why is the basilic vein used with caution? (Explain in 8-10 sentences) 5. Define hemoconcentration. (Explain in 8-10 sentences) 6. Describe the correct position of...
1. Most financial decisions involve two related elements a)advice and consent. b)investment and taxes. c)time and...
1. Most financial decisions involve two related elements a)advice and consent. b)investment and taxes. c)time and risk. d)saving and consumption. 2. The financial system a)involves bank accounts, mortgages, stock prices, and many other items. b)involves decisions and actions undertaken by people at a point in time that affect their lives in the future. c)coordinates the economy’s saving and investment. d)All of the above are correct. 3. When opening a print shop you need to buy printers, computers, furniture, and similar...
1. A Treasury bond has a 10% annual coupon and a 10.5% yield to maturity. Which...
1. A Treasury bond has a 10% annual coupon and a 10.5% yield to maturity. Which of the following statements is CORRECT? * a. The bond sells at a price below par. b. The bond has a current yield less than 10%. c. The bond sells at a discount. d. a & c. e. None of the above 2. J&J Company's bonds mature in 10 years, have a par value of $1,000, and make an annual coupon interest payment of...
SECTION A: READ THE PASSAGE AND ANSWER QUESTIONS 1-3 Emma, a monthly salaried worker, received 1,300...
SECTION A: READ THE PASSAGE AND ANSWER QUESTIONS 1-3 Emma, a monthly salaried worker, received 1,300 cedis as her net salary; she heard that this year’s inflation is at 18%. This situation caused prices to soar so high that she complained about everything she buys. In the previous year she was able to buy herself, dresses, a basket of foodstuffs, a small bag of oranges, a dozen of drinks and her transportation. However, this year, she couldn’t afford the full...
Question 1 As companies grow in size, it is inevitable for the shareholders to hire management...
Question 1 As companies grow in size, it is inevitable for the shareholders to hire management to run the operations of the business. The entire team of management, starting from the CEO and other top-level management, all the way to the middle and bottom level management are expected to perform towards the growth of the business. Since the shareholders of large companies are scattered across geographies, they appoint certain members as representatives who are elected to represent them on the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT