The Investment Contract Provision That Gives the Venture Capital Fund

question 44

Multiple Choice

The investment contract provision that gives the venture capital fund the right to compel the firm to file with the SEC for a public offering is a

• A) repurchase rights provision
• B) participation rights provision
• C) demand registration rights provision
• D) ownership rights agreement

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Definitions:

Division

A distinct part of a larger company that operates semi-independently, typically focusing on a particular product line or market sector.

ROI Calculations

The process of determining the return on investment by dividing the net profit by the initial cost of the investment.

Margin

The difference between the selling price of a good or service and the cost of producing it, often expressed as a percentage of the selling price.

Return on Investment

A measure of the profitability of an investment, calculated as a percentage of the return relative to the investment's cost.