Venture capitalists are compensated in two ways:

Select one:

a.

a management fee and a percentage of the firm's profit.

b.

a management fee and a carried interest in the fund.

c.

a management fee and a percentage of the company's shares.

d.

a management fee and bonus.

Equity financing provided to young businesses by investors who then play an active role in advising the management of the business is called:

Select one:

a.

venture capital.

b.

project finance.

c.

commercial loans.

d.

initial public offering.

If investment banks wish to engage in commercial banking operations in Australia then they have to be an ADI under:

Select one:

a.

the Banking Act 1959

b.

the Reserve Bank of Australia Accepted Depositors Act 2010

c.

the APRA Financial Regulations Act 2008.

d.

the Financial Sector Act 2001

Mezzanine (bridge) financing is:

Select one:

a.

funds provided to rescue a company from financial distress.

b.

capital provided as bridge loans.

c.

capital provided to fund major expansion such as plant expansion, product improvement or marketing.

d.

capital provided for a company that expects to go public within a year or so.