Question

37. Which of the following is not a private equity investing strategy? A. venture capital B....

37. Which of the following is not a private equity investing strategy?

A. venture capital

B. mezzanine financing

C. distressed debt investing in start-up firms

D. leveraged buyouts

38. Venture capitalists are always looking for viable business to invest in. In reviewing all the issues affecting profitability and realization of return, which of the following issues would be the most important?

A. Professional background of the management team

B. Key staff are “locked in” with non-computer algorithms

C. Rate of “cash burn”

D. Exit plan

39. Which of the following statements regarding club deals is least accurate? Club deals:

A. offer increased returns for investors

B. provide a competitive opportunity for weak private equity firms

C. provide an investment opportunity when private equity capital is scarce

D. offer diversification benefits to participating private equity firms

Homework Answers

Answer #1

37) The correct answer is option C i.e. distressed debt investing in start-up firms

PE investment strategy includes-

1. Venture Capital

2. Growth Capital

3. Mezzanine Financing

4. Funds of Funds

5. Leveraged Buyouts.

Hence option C is correct

38) The correct answer is option D i.e. Exit plan

Exit plan is one of the most important issues.

39) The correct answer is option B. provide a competitive opportunity for weak private equity firms

club deals-

offer increased returns for investors,  provide an investment opportunity when private equity capital is scarce and  offer diversification benefits to participating private equity firms

Other options are incorrect

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
Which of the following statements regarding club deals is least accurate? Club deals: Select one: a....
Which of the following statements regarding club deals is least accurate? Club deals: Select one: a. provide a competitive opportunity for weak private equity firms b. offer increased returns for investors c. offer diversification benefits to participating private equity firms d. provide an investment opportunity when private equity capital is scarce
Which of the following statements regarding club deals is least accurate? Club deals: Select one: a....
Which of the following statements regarding club deals is least accurate? Club deals: Select one: a. provide a competitive opportunity for weak private equity firms b. offer increased returns for investors c. offer diversification benefits to participating private equity firms d. provide an investment opportunity when private equity capital is scarce
Venture capitalists are always looking for viable business to invest in. In reviewing all the issues...
Venture capitalists are always looking for viable business to invest in. In reviewing all the issues affecting profitability and realization of return, which of the following issues would be the most important? Select one: a. Exit plan b. Professional background of the management team c. Key staff are “locked in” with non-computer algorithms d. Rate of “cash burn”
11. Which of the following is false about Private Equity? A) Private Equity is an alternative...
11. Which of the following is false about Private Equity? A) Private Equity is an alternative investment class consisting of capital that is not traded on a public exchange B) Private Equity firms played a key role in funding the Silicon Valley Boom. C) During the Great Recession default rate for Private Equity firms was higher than for other Financial Intermediaries. D) Private Equity firms love to collect on medical bills. E) All the above are true
Which of the following statements is CORRECT concerning corporations’ raising capital in equity markets? A) Unsyndicated...
Which of the following statements is CORRECT concerning corporations’ raising capital in equity markets? A) Unsyndicated stock offerings are more expensive than syndicate offerings. B) Securities and Exchange Commission (SEC) controls margin requirements. C) The Federal Reserve Board regulates trading by corporate insiders. D) In a private placement, securities are offered to the public and must be registered with SEC E) Venture capitalists intend to sit on boards of companies they fund.
Which statement is an example of collateral? Question 17 options: a) A firm must pay a...
Which statement is an example of collateral? Question 17 options: a) A firm must pay a higher coupon rate on bonds at their issuance due to risk. b) Private equity funders demand partial ownership. c) Venture capitalists receive partial ownership of a firm. d) A bank has the right to take ownership of a factory building if the borrower defaults on the mortgage loan. In economics, firms continue to invest until: Question 18 options: a) the marginal revenue product of...
1) Which of the following is NOT a value-creating activity associated with the differentiation strategy? a....
1) Which of the following is NOT a value-creating activity associated with the differentiation strategy? a. intensive training programs to improve employee efficiency b. strong capability in new product development. c. rapid and timely deliveries to customers. d. procurement systems focused on finding the highest quality raw materials. 2) A certain marble quarry provides a unique type of marble that is richly colored and strikingly veined. It has been used for churches and public buildings throughout the world. The architect...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...