A Summary of the Investment Terms and Conditions Accompanying an Investment

question 11

Multiple Choice

A summary of the investment terms and conditions accompanying an investment is referred to as a:

• A) term sheet
• B) business plan
• C) fund created by professional venture capitalists
• D) due diligence in venture investing
• E) capital call

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by an individual who holds contradictory beliefs, ideas, or values at the same time.

Conformity

The act of changing one's behavior to match the responses or norms of a group, often as a result of real or imagined group pressure.

Obedience

A behavioral response to the instruction or command of an authority figure, often studied in social psychology.

Dissonance Theory

A psychological concept suggesting that people experience discomfort (dissonance) when their beliefs, ideas, or behaviors are inconsistent with each other, motivating them to seek consistency.