公司理财精要第十五章题库.doc

Chapter 15 - Raising Capital 15- PAGE 63 Chapter 15 Raising Capital ? Multiple Choice Questions? 1.?Venture capital is most apt to be the source of funding for which one of the following??A.?Bankruptcy reorganizationB.?Global expansion for an established firmC.?New, high-risk ventureD.?Seasonal productionE.?Daily operations for an established, profitable firm ? 2.?Jersey Ts is preparing to sell new shares of stock to the general public. As part of this process, the firm just filed the required paperwork with the SEC that contains the material information related to this issue of stock. What is the name associated with this paperwork??A.?ProspectusB.?Red herringC.?Security agreementD.?Comment letterE.?Registration statement ? 3.?What is the legal document called that is provided to potential investors and describes a new security offering??A.?Security agreementB.?ProspectusC.?Public statementD.?Registration statementE.?Formal filing ? 4.?Lisa is interested in purchasing 1,000 shares of TJH, Inc. when the shares are issued. Her broker just gave Lisa a preliminary prospectus on these shares for her to review as she waits for the shares to be cleared for sale. What is the name of this prospectus??A.?Green ShoeB.?Rights offerC.?Red herringD.?SpreadE.?Tombstone ? 5.?What is the advertisement, commonly found in financial newspapers, that announces a public offering of securities and provides the name of the underwriters called??A.?ProspectusB.?Red herringC.?TombstoneD.?GREEN ShoeE.?Underwriters ad ? 6.?The Road House Diner is offering 10,000 shares of stock to the general public on a cash basis. Which one of the following terms best applies to this offer??A.?Rights offerB.?General cash offerC.?Green ShoeD.?Red herringE.?Prospectus ? 7.?Richardson Marina has 18,000 shares of stock outstanding that were sold to the general public last year. The firm has just decided to issue an additional 6,000 shares of common stock and has also decided to