International Finance

Code 20156 – Academic Year 2020-2021

SAMPLE QUESTIONS IN PREPARATION FOR THE EXAM

NAME………………………………………….……………………………………

SURNAME …………………………………………………………………………

ID NUMBER………………………………………………………………………..

SIGNATURE ………………………………………………………………………

IMPORTANT INFORMATION:

m
The answer referring to each multiple-choice question MUST be indicated with an “X”.

er as
co
eH w
Time allowed: n.a..

o.
Good Luck!
rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000831693719 from CourseHero.com on 09-10-2021 10:50:28 GMT -05:00

https://www.coursehero.com/file/84868206/Lessons-13-14-Sample-questions-exam-20156-with-solutions-1pdf/
 ANSWER SHEET FOR THE MULTIPLE-CHOICE QUESTIONS

A B C D
1
2
3
4
5
6
7
8
9
10
11

m
12

er as
13

co
eH w
14
15

o.
16
rs e
ou urc
17
18
19
o

20
aC s
vi y re
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000831693719 from CourseHero.com on 09-10-2021 10:50:28 GMT -05:00

https://www.coursehero.com/file/84868206/Lessons-13-14-Sample-questions-exam-20156-with-solutions-1pdf/
 1. Which of the following piece of information is NOT included in the information memorandum of a Closed-end fund?
a. Size of leverage
b. Cluster of Investment
c. Management fees rules
d. Target geographies

2. What is the biggest issue existing in the Exit through the Sale to another PE investor?
a. The price is set by the Stock Exchange
b. The IPO process is mandatory
c. The seller and the buyer adopt the same negotiation techniques
d. The seller usually is a competitor of the entrepreneur

3. What is the advantage for the entrepreneur of an expansion financing deal carried out with the SPV?
a. The PE can negotiate a bank loan with a lower interest rate
b. The PE will not benefit from the synergies
c. The synergies will be created despite the merge does not occur
d. This option is more expensive for the PE than the expansion financing carried out with the direct investment

4. Considering a VCF in the US, which of the following sentences fits to identify managers of the fund:
a. managers are the limited partners of a limited partnership
b. managers are the general partners of a limited partnership
c. managers are limitedly liable for the financial debts of the limited partnership
d. None of the above describe the functioning of VCF in the US

m
er as
5. Which of the following describes the SBIC?
a. 50% of debt can be borrowed from the Federal Reserve System at a very low and fixed rate which is set yearly

co
b. Both shareholders receive a fee and an equal distribution of profits

eH w
c. The Public Admin is a pure investor that does not have the right to decide where funds are invested
d. Profits are distributed on a pro rata basis depending of the stake of the investor

o.
6.
a.
rs e
Why is it difficult for a PE to exit from the investment in the VBC?
Because the price is not defined by the market, entailing a high difficulty in the determination of the price
ou urc
b. Because the price is defined by the market and a seller could buy the shares for speculative purposes
c. Because the financing can be higher under private equity investment
d. Because the entrepreneur will share with the private equity the capital gain
o

7. What is TRUE about PIPE?

a. It is an investment made with strategic purposes
aC s

b. The investment always involves a majority stake

vi y re

c. The selling mechanism is based on the stock exchange rules

d. The purpose is to change the ownership structure of a listed company

8. What is the main difference between Restructuring and Distressed Financing?

a. Restructuring occurs when the company is still alive, whereas distressed financing occurs when the company is dead
ed d

b. Distressed financing occurs when the company is still alive, whereas restructuring financing occurs when the company is dead
c. Distressed financing occurs when distressed costs are larger than the revenues
ar stu

d. Restructuring financing occurs when the company is still alive and the management wants to pursue an M&A operation

9. Making reference to the Venture Capital Trust, which statement best describes its mechanism?
a. Investors become the settlers, whereas a management company becomes the trustee.
b. the beneficiary and the trustee are the same person
is

c. the settlor and the trustee are the same person

d. the settlor and the management company are the same person
Th

10. Which of the following could be a case of Corporate Governance Deal?

a. A difficult case of development of a product for a small company
b. A difficult case of succession in a family business
c. A difficult case of M&A, in which there is difficulty in raising equity capital
sh

d. A difficult case of LBO, in which the financial risk is at stake

11. What is the ultimate purpose of the Fundraising phase?

a. To decide the VBCs in which to invest
b. To collect letters of commitment from investors
c. To decide the independent Board members of the VBC
d. To decide the percentage of shares held in the VBC

12. What is the biggest problem existing in the exit through the sale to another PE?
a. The price is set by the market
b. The governance mechanism is set by the Supervisor
c. The buyer wants to minimise the price and the seller wants to maximise the price
d. The seller usually is a competitor of the inventor

13. Which of the following statement is TRUE?

This studya.source
Thewas
LPAdownloaded
is subject toby
the100000831693719
approval of the Federal Court
from CourseHero.com on 09-10-2021 10:50:28 GMT -05:00
b. The Internal Code of Activity is subject to the approval of the AMC
c. The Internal Code of Activity is subject to the approval of the Supervisor
https://www.coursehero.com/file/84868206/Lessons-13-14-Sample-questions-exam-20156-with-solutions-1pdf/
 d. The Internal Code of Activity does not have to obtain any authorization

14. What is the advantage of an expansion financing deal carried out with the SPV?
a. The PE can negotiate a bank loan with a shorter maturity
b. The PE will not benefit from the synergies
c. The synergies will be created after the merge
d. This option is less expensive than the expansion financing carried out with the direct investment

15. Why is the put option used as a tool of protection?

a. So that the PE can buy the shares belonging to the entrepreneur
b. So that the PE can sell its shares to the entrepreneur
c. So that the entrepreneur can buy the shares belonging to the PE
d. So that the entrepreneur can sell her shares to the PE

16. Taxonomy of PE Cluster: select the main clusters about the firm’s life cycle:
a. Seed, Start Up, Early Growth, Expansion, Maturity and Decline
b. VC financing and Buy-out financing
c. Early Growth, Start Up, Development, Maturity, Decline
d. Development, Start Up, Early Growth, Expansion, Maturity, Crisis or Decline

17. Which of the following could be a case of Corporate Governance Deal?

e. A difficult case of development of a product for a small company
f. A difficult case of succession in a family business
g. A difficult case of M&A, in which there is difficulty in raising equity capital

m
h. A difficult case of LBO, in which the financial risk is at stake

er as
co
18. Restructuring Financing:

eH w
a. Is a very common deal for PEI and it occurs when the company is dead
b. Is when the aim of PE is not to merely finance the company, rather to buy the relevant (and valuable) assets of the company
c. Is referred to an investor that is going to buy patents, brands, contracts and equipment

o.
d. Is when the company needs also the strategic support from the PEI
rs e
ou urc
19. Looking at Banks as players of the PE business in Europe:
a. They usually invest in closed-end funds to ultimately participate to some PE activities
b. It is very common that a bank invests directly and become a PEI
c. Regulatory capital restrictions never applies
d. Never participate as simply investors in closed-end funds
o
aC s

20. Looking at Investment Firms in the PE business in Europe:

a. A-shareholders: are remunerated with management fees and with a yearly carried interest
vi y re

b. A-shareholders: are remunerated with management fees and carried interest at the end of the life of the
vehicle
c. B-shareholders: act as AMC
d. B-shareholders: are remunerated with carried interest but not managements fees
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000831693719 from CourseHero.com on 09-10-2021 10:50:28 GMT -05:00

https://www.coursehero.com/file/84868206/Lessons-13-14-Sample-questions-exam-20156-with-solutions-1pdf/
Powered by TCPDF (www.tcpdf.org)