F317 study guide
F317 / Final Exam / Study Guide 50 Questions / Multiple Choice & True & False Types of Entities (and their characteristics) - LLC - S-Corp - C-Corp Types of Intellectual Property - Patents - Trademarks - Trade Secrets - Copyrights Before Venture Capital - Bootstrapping - Angel Investing - Family & Friends Types of Exit Strategies - Acquisition - Shearing - IPO The Equity Bible - Valuations: Example pg. 41
This is an appraisal or estimate of the worth of the business
The chances of a high-potential venture succeeding in Silicon Valley is 1 in 10,000
Rate of Return: express as a percentage of the total amount invested
Funding risk: probability of loss from higher funding costs or from a lack of funds to finance a project
Liquidity Risk: probability of loss arising from a situation where there will not be enough cash or cash equivalents to meet debts; sale of illiquid assets will yield less than their fair value.
Hold times: the time between the date of the purchase of an asset and the date of the sale of the asset
Scale: if gaining additional revenue requires relatively smaller and smaller additions of operating costs, your business is scalable.
Platform business: businesses that allow users to create and consume value
Retention ratio: a backend calculation that helps to determine how much equity to request - Capitalizations Tables
This shows who owns what in the company, listing the company’s shareholders, the amount if shares they hold, and how much they paid for those shares, in order of decreasing liquidity preference.
Fully-diluted: calculation of the shareholder’s percent ownership after all possible shares have been issued.
Dilution: occurs for any event that requires the company to issue more shares; equity stake decreases in proportion to the percent of the company new investors buy
Price-based dilution: occurs when both the percent ownership and the value of said ownership
This is an appraisal or estimate of the worth of the business
The chances of a high-potential venture succeeding in Silicon Valley is 1 in 10,000
Rate of Return: express as a percentage of the total amount invested
Funding risk: probability of loss from higher funding costs or from a lack of funds to finance a project
Liquidity Risk: probability of loss arising from a situation where there will not be enough cash or cash equivalents to meet debts; sale of illiquid assets will yield less than their fair value.
Hold times: the time between the date of the purchase of an asset and the date of the sale of the asset
Scale: if gaining additional revenue requires relatively smaller and smaller additions of operating costs, your business is scalable.
Platform business: businesses that allow users to create and consume value
Retention ratio: a backend calculation that helps to determine how much equity to request - Capitalizations Tables
This shows who owns what in the company, listing the company’s shareholders, the amount if shares they hold, and how much they paid for those shares, in order of decreasing liquidity preference.
Fully-diluted: calculation of the shareholder’s percent ownership after all possible shares have been issued.
Dilution: occurs for any event that requires the company to issue more shares; equity stake decreases in proportion to the percent of the company new investors buy
Price-based dilution: occurs when both the percent ownership and the value of said ownership