2.“Term Sheet”,in venture investing context, is the process of ascertaining the

ID: 2814659 • Letter: 2

Question

2.“Term Sheet”,in venture investing context, is the process of ascertaining the viability of a business plan.

Ture/False

9. Bank debt is not a realistic source of financing for start-ups due to all of the reasons except?

A. a large portion of the assets are intangible and provide no collateral

B. payables either don't yet exist or its history is inadequate

C. the start- up’s dependence on a small number of irreplaceable people is not a good match demand deposits or other bank liabilities

D. receivables collection track record is incomplete

E. in the event of a default. it is not plausible for the bank to install a management team to he right the operations

2. FALSE.

Term sheet is the summary of investment terms and conditions related to an investment.

9. B.payables either don't yet exist or its history is inadequate

Apart from this, all of the given options are reasons why a start up should not go for bank debt.

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