Week 4 Assignment Questions

NameCourseTutor’s NameDateHow do venture capital boards differ in composition from the boards of companies that have been bought out?Venture capital boards consist of individual members capable of financing operations of the venture company. Additionally, board members have a sole purpose of financing various projects rather than overseeing operations of the company. Why would a board have special voting rights? How do these address some of the basic tenets of private equity?Policy matters are vital for the success of a company and voting rights allow board of directors to contribute in policymaking. In private equity, voting rights determine issuance of securities and making alterations in a corporation’s operations.From the venture capitalists viewpoint, what are three reasons for staged financing?Helps to determine physical location of an entrepreneurial firmConsiders geographical distance between VC Company and the firmGives accurate approximation of capital to invest Why is consensus building such an important part of a board member’s work?It reduces time spent in making decisions hence fastening operations.Why would limited partners countenance their GPs putting more money into a struggling company? How does that differ from a bank’s response to a company’s difficulties? How does that