Million investment.

F This will include a thorough review of the company's past operating history

(should there be any) and its future projections as disclosed in the company's

Business plan.

G Because such future financings will dilute the prior investors, the greater the

Expected need for future financing, the more important it is for the venture

Capitalist to maximise its initial ownership interest.

H Post-money valuation is equal to the pre-money valuation of the business plus

the amount of the venture capitalist's investment in the company.

ExamFocus

E

Part 6

What you have to do

This part of the examination consists of a single, long, law-related text. It is

Followed by six multiple-choice questions, each with four options. The multiple

Choice may take the form of a question about an idea or an opinion expressed in

The text, about a word or phrase used in the text, or about the meaning of a

Paragraph in the text. A question may consist of an incomplete sentence which you

Have to complete by selecting the correct option.

What is being tested

The task tests your ability to read a text for detail. It requires you to be able to

Recognise and understand implication and opinion, and to be able to identify the

Detailed meaning of a paragraph, as well as what individual words refer to.

Tips

As with the other longer exam tasks, it is advisable to skim the text first in order to orient

Yourself, and then to read through the questions quickly. When reading the text carefully a

Second time, you should pay attention to detail.

Remember that when you are asked about opinions or viewpoints expressed in the text, you

Should answer according to the information contained in the text, and not according to your

Own opinions or knowledge.

The function of a paragraph can often be determined more easily by identifying the main or

Topic sentence of that paragraph.

Questions 49-54

Read the article on page 227 about European mergers and acquisitions from a

law firm's website. For each question 49-54, choose one letter (A, B, C or D).

49 What is the main point in the first paragraph?

A Many people in the press and government would welcome the end of

'golden shares'.

B Three decisions have been reached with regard to a special shareholders'

Rights issue.

C Three decisions were issued which allow governments to keep control over

Former state industries.

D New European High Court decisions will increase the rights of shareholders

Of privatised enterprises.

What does the writer say about golden-share schemes in the second

paragraph?

A The French and the Portuguese laws concerning golden shares were

Approved, despite the fact that they restrict the movement of capital.

B The Court will only tolerate golden-share schemes if the governments

safeguard shareholders' rights.

C Golden shares will be permitted under certain carefully defined

Circumstances, subject to judicial review.

D Golden-share schemes which are based on objective criteria will be lawful if

Date: 2015-12-11; view: 789