Examine the following statements and tick the right answer – The term sheet is a legal agreement...

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Accounting

Examine the following statements andtick the right answer –

  1. The term sheet is a legal agreement between the founders of acompany and the investors.-YES /NO
  1. The term sheet is a legal agreement between the company and itsfounders to accept PE investment. - YES /NO
  1. The term sheet is a legal agreement between the company and thePE investors. -YES/ NO
  1. The term sheet is a list of terms and conditions based on whichinvestors are agreeable to invest in a company. - YES/NO
  1. Can the board of directors of a company decide to issue sharesto investors for financing the company with PE investment? -YES /NO
  1. If the investors mention an acceptable valuation of the companyin the term sheet, can the shareholders of a company decide toreject the of fereven if the board of directors is willing toaccept it? - YES /NO
  1. Aftertheconclusionofexecutionofagreementsandsatisfactionoftheconditionsprecedentto investment, the funds will be made available to the company fromthe investors -YES

/ NO

  1. Eveniftheduediligencefindingofacompanyarenotsatisfactory, caninvestors decide to go ahead with the transaction? - YES/NO
  1. If two companies are theoretically identical in all financialparameters, can an investor value them differently? - YES/NO
  1. Can the post-money value of a company be higher than thepre-money value if the company has no debt in its balance sheet? -YES /NO

Answer & Explanation Solved by verified expert
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The term sheet is a legal agreement between the founders of a company and the investorsNO The term sheet is a legal agreement between the company and its founders to accept PE investment NO The term sheet is a legal agreement between the company and    See Answer
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