Sample Questions for Venture Capital and Private Equity

Institute Name Dr V N Bedekar Institute Of Management Studies

Programme Name MMS SEM IV
Course (Subject Name) Venture Capital and Private Equity
Question Bank Prepared by (Faculty Name) Dr. M. Sreedharan
Faculty Email Id [email protected]
Faculty Mobile Number
Sr. No. Question Option A Option B Option C Option D Correct Answer
Alternative Investment Funds are
1 RBI Ministry Of Finance SEBI IRDAI SEBI
regulated by
Security and Security and
Security Exchange Security Empanelled Security Exchange
2 SEBI stands for Exchange Board of Exchange Board of
Board of India Businiess Institution Business Information
India India
A company's shares are trading at
Rs.100 in the marekt. Of the total
500,000 shares of Rs.10 each that the
company has issued, 60% is helf by
3 Rs50,00,000 Rs.500,00,000 Rs.700,00,000 Rs.200,00,000 Rs.500,00,000
the promoters. The company also has
borrowings of Rs.2crores on its
books. What is the company's market
capitalisation ?
The approach and resource
4 configuration used to tap a business Due diligence Business Model Budget Bisiness Plan Business Model
opportunity is
5 PE funds receive proposals from SEBI Prospective issuers Investment Bankers Consultants Investment Bankers
Analysis of industry trends is a part Commercial due Commercial due
6 Finacial due diligence Legal due diligence Initial due diligence
of diligence diligence
Provision in Provision in
Which of the following formats of Provision of Provision of
memorandum and Oral promise of memorandum and
7 binidng the investee company do PE shareholders subscription
articles of association promoter articles of association
prefer? agreement agreement
of investee company of investee company
The AIF as per SEBI rules should
8 Rs.10 crores Rs15 crores Rs.20 crores Rs.30 crores Rs.20 crores
have a minimum corpus of
Private Equity Investments are made Unlisted Equity
9 Listed Equity Shares Only debt Peference Shares Listed Equity Shares
in Shares
 Sample Questions for Venture Capital and Private Equity
Institute Name Dr V N Bedekar Institute Of Management Studies
Programme Name MMS SEM IV
Course (Subject Name) Venture Capital and Private Equity
Question Bank Prepared by (Faculty Name) Dr. M. Sreedharan
Faculty Email Id [email protected]
Faculty Mobile Number
Sr. No. Question Option A Option B Option C Option D Correct Answer
Which is the method of valuation that
The Conventional
considers the entire stream of Capital Asset Risk
10 First Chicago Method Venture Capitalist Net Assets Method First Chicago Method
expected earnings of the investee Ratio Method
Valuation Mehtod
company
Which type of appraoch of valuation
Replacement Cost
11 is denoted by Discounted Cash Flow Income Approach Market Approach Multiples Approach Income Approach
Approach
Technique (DCF)
Junior Unsecured
12 Bank debts are described as Junior Debts Senior Secured Debts Junior Secured Debts Senior Secured Debts
Debts
LBO is described as which type of
13 finance for the acquisition of the Equity Cash Leverage Private Finance Leverage
company ?
What is the most preferred exit
14 Trade Sale Strategic Sale Liquidation IPO IPO
option amon PE firms?
List the most important characterisitc Family Owned Multinational Family Owned
15 Conglomorates Large organizations
of emerging market Businesses Organizzations Businesses
The term intellectual property is used Collection of Ideas Collection of Ideas
16 Tangible Assets Innovative Practice Investment Activity
to denote and Concepts and Concepts
What is the effect that leads to
17 negative retuns for the fund in the J curve' Effect Price Effect Income Effect Substitution Effect J curve' Effect
initial stages
A start up is a human institution
18 desinged to create a new product or Extreme Happiness Extreme Sadness Balanced Mind Extreme Uncertainty Extreme Uncertainty
service under conditions of
Drop in gross margin and a radical
redcution in many elecments of cost
19 Unsecured Loans Capital Structure Bank Borrowings Sales Volume Sales Volume
structure is not an issue, if there is
dranmatic insrease in
 Sample Questions for Venture Capital and Private Equity
Institute Name Dr V N Bedekar Institute Of Management Studies
Programme Name MMS SEM IV
Course (Subject Name) Venture Capital and Private Equity
Question Bank Prepared by (Faculty Name) Dr. M. Sreedharan
Faculty Email Id [email protected]
Faculty Mobile Number
Sr. No. Question Option A Option B Option C Option D Correct Answer
Customer Value Proposition (CVP),
20 Profit Formula, Key Resources, Key A LBO Model A Business Plan A Borrowing Plan A Business Model A Business Model
Processes make a