1. Individual or limited partner venture capitalists generally:
A. seek an exit strategy.
B. provide only seed money to start-up firms.
C. tend to be long-term investors.
D. are easy to contact.
E. request less than 25 percent ownership.
2. Which of these may occur if a company uses its overall cost of capital as the discount rate for all projects? I. Profitable low-risk projects may be incorrectly rejected. II. Only projects with risks similar to the current company will be accepted. III. Too many high-risk projects may be accepted. IV. Only low-risk projects will be accepted.
A. Profitable low-risk projects may be incorrectly rejected.
B. II only
C. II and IV only
D. I and III only
E. I and IV only
F. I, II, and III only