If Pushed by a Promising Investor to Indicate What Other

question 15

Multiple Choice

If pushed by a promising investor to indicate what other firms/angels you are talking to, you should:

• A) Respectfully decline
• B) Reveal only the strongest other prospects
• C) Reveal only prospects that have co-invested with the prospective investor
• D) Be up front and tell them what they want to know
• E) Either respectfully decline or be up front and tell them what they want to know, depending upon the situation

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Definitions:

English Auction

A type of auction in which the price ascends with each subsequent bid, and the highest bidder wins.

Willingness To Pay

The maximum amount an individual is ready to spend to acquire a good or service or to avoid something undesirable.

Expected Revenue

The anticipated amount of money that a business or project will generate over a specific period.

Probability Distribution

Represents a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.