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20. In a full participating Preferred Stock, founders want preferred stocks to be converted to common stock at some point. What are conditions to ensure the conversion? A. Deemed liquidation event B. Liquidation preference C. Qualified public offering (QPO) 21. True. False: In a typical term sheet, Registration rights at the time of IPO is not included as it is relevant only for successful exit A. True B. False 22. True, False: Upon conversion, the shareholder keeps any right to receive liquidation preference. A. True B. False 23. To balance the cash flow rights of VCs and founders, VCs have when a portfolio company is valued at low valuation, whileis (are) imposed to protect founders cash flow rights when a portfolio company is valued at high valuation. event B. Liquidation preference; conversion conditions C. conversion conditions; Liquidation preference D. Deemed liquidation event, Liquidation preference - Continue to the next page-
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