UNIT 15 VENTURE CAPITAL
REVISION FORMS OF MONEY 1. Money placed in banks and other savings institutions constitutes …. a)capital b) deposit c) finance 2. Money available in the banking system for individuals and businesses to borrow is … a) credit b) currency c) debts 3. All the money a person receives is known as …. a) aid b) income c) wages 4. A fixed amount of money earned for a week’s manual work is called …. a) income b) salary c) wages
5. A fixed annual amount of money paid to an employee (in monthly instalments) is a …. a) loan b) salary c) wage 6. Extra money paid to employees for good financial results is a …. a) bonus b) fee c) revenue 7. Money paid to salespeople and agents depending on the amount of goods sold is …. a) bonus b) commission c) overtime 8. The money needed to start a company is called …. a) asset b) capital c) debt
1. The dot-com bubble was followed by a house-price bubble. 2. The subprime crisis occurred when the Federal Reserve raised interest rates. 3. House buyers expected the value of their property to rise, but instead it fell. 4. Subprime mortgages have special low interest rates.
5. Many financial institutions bought securitized product including mortgages, believing them to be safe. 6. Mortgage-backed securities were divided into prime and subprime instruments. 7. People who defaulted on their mortgages had their homes repossessed by the lenders.
PREPOSITIONS existing competitors TO your product the advantage it has OVER its competitors details ABOUT the customer what you will use your company FOR the minimum level OF sales what is special ABOUT the company make projections FOR future revenue give details OF previous investment an exit strategy FOR investors
START-UPS – HOW TO RAISE MONEY? By issuing shares (equities) Giving shareholders the right to sell their equities Invoking so-called limited liability