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Question 1

Equity ownership capitalization

Answer 1

the ratio of net worth to total assets

Question 2

Net worth

Answer 2

the amount by which assets exceed liabilities

Question 3

share issues

Answer 3

shares in a company made available for people to buy

Question 4

Revaluation Reserve

Answer 4

a non-cash reserve created to reflect the true value of the asset when the market value of a certain category of asset is more or less than the value of such asset at which it is recorded in the books of account

Question 5

Retained earnings

Answer 5

the cumulative net earnings or profits of a company after accounting for dividend payments

Question 6

Net Profit

Answer 6

Total earnings after subtracting all expenses

Question 7

Gross profit

Answer 7

Earnings after subtracting costs of producing and selling its products - or Cost of goods sold (COGS)

Question 8

Tax Reserves

Answer 8

Amounts payable, accrued liabilities or other amounts owing in respect of Taxes attributable to the operations of any Company

Question 9

Capitalization Table

Answer 9

also known as a cap table, is a spreadsheet or table that shows the equity ownership capitalization for a company.

Question 10

Capital structure

Answer 10

how a company funds its overall operations and future growth

Question 11

Equity

Answer 11

ownership rights in the company, without the need to pay back any investment

Question 12

Debt

Answer 12

borrowed money that is due back to the lender, commonly with interest expense

Question 13

debt to equity ratio

Answer 13

a ratio used to evaluate a company’s financial leverage. is calculated by dividing a company’s total liabilities by its shareholder equity

Question 14

Valuation Multiple

Answer 14

summarizes in a single number the relationship between the market value of a company’s stock (or of its total capital) and some fundamental quantity, such as earnings, sales, or book value

Question 15

Value proposition

Answer 15

an innovation, service, or feature intended to make a company or product attractive to customers

Question 16

Non-dilutive funding

Answer 16

funding that does not require the recipient to give up equity in their company

Question 17

ebitda

Answer 17

Earnings Before Interest, Taxes, Depreciation, and Amortization

Question 18

Enterprise Value

Answer 18

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Question 19

Leveraged Buyout (LBO)

Answer 19

when the acquisition of another company is completed almost entirely with borrowed funds.

Question 20

GAAP

Answer 20

Generally accepted accounting principles. standardizes financial reporting and provides a uniform set of rules and formats to facilitate analysis by investors and creditors

Question 21

Liquidity

Answer 21

the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price

Question 22

Venture capitalist

Answer 22

a private equity investor that provides capital to companies with high growth potential in exchange for an equity stake.

Question 23

Corporate Transaction

Answer 23

the occurrence of any “Person” becomes the “beneficial owner”, directly or indirectly, of securities of a Company representing more than fifty percent (50%) of the total voting power

Question 24

Private equity

Answer 24

a type of alternative investment in which the investors purchase shares in privately-held businesses