Investors and founder is legally binding agreement

Assignment Help Financial Management

Reference no: EM132068770

True/False for the following:

1) It is standard practice for a term sheet to require more than half the board seats to go to the seed investors.

2) The term sheet between an investors and founder is a legally binding agreement.

3) If a 1X liquidation preference is included in the term sheet the Venture Capitalist will never be able to realize a gain on its investment but will be protected from a loss.

4) An option pool is used by founders to make payments to employees. The options grant the employees the right but not the obligation to buy shares of the companies shares at a set price before they expire. Using options conserves cash and ties the employee to the long-term success of the venture.

5) A term sheet will address what happens to the shares of founders should founders decide to leave the company.

Reference no: EM132068770

Questions Cloud

How will the after-tax operating cash flow change : How will the after-tax operating cash flow (ATOCF) change if the number of units sold is 10% less than the projected demand of 15,000 units?

The capitalization table in term sheet summarizes : The capitalization table in a term sheet summarizes the ownership positions of all parties before and after a series of investments are made.

Dilution of ownership is benefit to early stage venture : Dilution of ownership is a benefit to an early stage venture capitalist because it indicates that other investors want a share of the same venture.

Calculate the correlation coefficient and portfolio return : Calculate the covariance, correlation coefficient and portfolio return and risk, based on the original weights you assign.

Investors and founder is legally binding agreement : The term sheet between an investors and founder is a legally binding agreement.

Refinancing the outstanding mortgage balance at lower rate : What would be the monthly saving to a homeowner from refinancing the outstanding mortgage balance at the lower rate?

What are the monthly mortgage payments : A homeowner takes out a $367,000, 30-year fixed-rate mortgage at a rate of 5.45 percent. What are the monthly mortgage payments?

What is the yield to maturity of this bond : A Treasury bond with the longest maturity (30 years) has an ask price quoted at 105.4375. What is the yield to maturity of this bond?

Identify whether the swap is asset or liability : Identify whether the swap is an asset or a liability for the XYZ Company

User Account

All Pages