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Question
Lola is in the process of forecasting the sales growth rate for an early-stage venture specializing in the production of durable running shoes. Lola predicts a 0.20 probability of an 80% growth in sales, a 0.30 probability of a 60% growth in sales, a 0.40 probability of a 40% growth in sales, and a 0.10 probability of a 10% decrease in sales. What is the expected sales growth rate of the venture?
a. 47%
b. 49%
c. 51%
d. 53%
Answer
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Related questions
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Which of the following is not a characteristic of Regulation A?
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According to the Investment Advisers Act of 1940, a bank would not be classified as an "investment adviser."
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The typical business organization for a venture in its rapid-growth stage is a partnership or LLC.
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The JOBS Act of 2012 created several important changes in Rule 506 of Regulation D and the expanded version of a Regulation A-like offering.a. Trueb. False
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In SEC v. Ralston Purina (1953), the U.S. Supreme Court took an important step toward defining a public offering for the purposes of Section 4(2) of the Securities Act of 1933.
a. True
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The Investment Company Act of 1940 defines investment companies and excludes them from using some of the registration exemptions originating in the 1933 Act.
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A venture's riskiness in terms of possible poor performance or failure would be considered to be very high in which of the following life cycle stages?
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A call option is the obligation to purchase a specific asset at a predetermined price.
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Registration rights embedded in a venture's securities grant certain classes of shareholders the right, under certain circumstances, to have their securities registered with the SEC.
a. True
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In which of the following credit programs does the SBA borrow money to be lent to Small Business Investment Companies (SBICs) and guarantee payment to investors?
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Which of the following types of crowdfunding involves soliciting funds from a large number of small investors in exchange for an equity position in the venture requesting the funding?
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Arranging for partial ownership as a component of the expected return to a lessor is known as:
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In which of the following credit programs does the SBA approve a loan and guarantee up to 85% of loan value?
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Commercial banks, credit unions, and/or financial services firms are lenders in which of the following SBA credit programs?
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Personal credit cards have proven to be a source of financing for startup firms for all of the following reasons except:
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b. teaser rates afford initial low cost borrowing
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The Small Business Administration was created by an act of Congress in 2003.a. Trueb. False
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The beginning of professional venture capitalists is considered to have begun with the establishment or formation of:
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Q:
When screening possible investments, a venture capital firm might issue a SLOR, which stands for:
a. "standard letter of rejection"
b. "standing letter of reconciliation"
c. "standard letter of reassessment"
d. "senior letter of reference"