Module 2 Vocabulary 1

Define the term 'Equity' in the context of investments.

• Ownership in a company, typically represented by shares of stock.

• A form of currency used in international trade

• A measure of a company's financial leverage

• A type of debt instrument

Explain the difference between 'Angel investors' and 'Venture capitalists'.

• Angel investors are professional firms, while venture capitalists are individuals.

• Angel investors and venture capitalists both invest in startups.

• Angel investors provide larger funding amounts compared to venture capitalists.

• Angel investors are individuals, while venture capitalists are professional firms.

How would you use the word 'Nuanced' in a sentence to describe a complex situation?

• The nuanced issue is black and white, with no gray areas.

• The issue at hand is quite nuanced, with multiple layers of intricacies and considerations.

• The situation lacks nuance and is easy to understand.

• The nuanced situation is simple and straightforward.

Discuss the concept of a 'Safety net' and its importance in financial planning.

• Having a 'Safety net' in financial planning leads to reckless spending

• A 'Safety net' is only for wealthy individuals and not applicable to everyone

• A 'Safety net' is unnecessary in financial planning as it hinders growth

• A 'Safety net' in financial planning is crucial as it provides a buffer against unexpected financial challenges, helping individuals maintain financial stability and avoid falling into debt.

In what ways can 'Stagnation' affect the growth of a business?

• Stagnation has no impact on market share

• Stagnation leads to increased financial stability

• Stagnation can hinder innovation, reduce competitiveness, lead to loss of market share, and cause financial instability.

• Stagnation can boost innovation and competitiveness

What are the 'Constraints' that entrepreneurs often face when starting a new venture?

• Lack of funding, limited resources, market competition, regulatory hurdles, uncertainty about success

• Insufficient funding, scarce resources, lack of competition, complex regulations, certainty about success

• High funding, extensive resources, no competition, easy regulations, guaranteed success

• Abundant funding, unlimited resources, lack of competition, smooth regulatory process, certainty about success

How does a 'Burden' differ from a 'Safety net' in terms of impact on an individual?

• A 'Burden' negatively impacts an individual, while a 'Safety net' positively impacts an individual.

• A 'Burden' positively impacts an individual, while a 'Safety net' negatively impacts an individual.

• A 'Burden' and a 'Safety net' have the same impact on an individual.

• A 'Burden' is a positive term, while a 'Safety net' is a negative term.

Describe a scenario where 'Treacherous' conditions could pose a risk to a business.

• Stable economic conditions resulting in increased consumer spending

• Extreme weather conditions leading to road closures preventing delivery of goods to customers.

• Smooth road conditions leading to faster delivery times for customers

• Sunny weather causing delays in production due to excessive heat

Explain how the concept of 'Outlasts' can be applied in a competitive market.

• Short-term gains, imitation of competitors, ignoring customer feedback

• Long-term sustainability, continuous innovation, and adaptation to market changes.

Provide an example of a situation where having 'Equity' can benefit a company in the long run.

• Taking on excessive debt and risking financial instability.

• Focusing solely on short-term profits and neglecting long-term growth.

• Ignoring stakeholder interests and losing support.

• Raising capital without debt and incentivizing stakeholders.