A Term Sheet Is a Summary of the Investment Terms

question 13

True/False

A term sheet is a summary of the investment terms and conditions accompanying an investment by venture capitalists.

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Definitions:

Corporate Charter

A corporate charter is a legal document establishing a corporation and outlining its structure, objectives, and operations as recognized by the state.

Cash Dividend

This is a payment made by a company out of its earnings to shareholders, distributed in the form of cash.

Par Common Stock

The nominal or face value assigned to a share of common stock in the company’s charter.

Cumulative Preferred Stock

Stock that has a right to receive regular dividends that were not declared (paid) in prior years.