Question 1

Private placement:

Accepted Answer

A) is the sale of equity to selected individuals. 
B) is the sale of equity to investment bankers. 
C) requires compliance with all securities laws. 
D) maintains the ownership control of the original owners. 
A) is the sale of equity to selected individuals. 
B) is the sale of equity to investment bankers. 
C) requires compliance with all securities laws. 
D) maintains the ownership control of the original owners.

Question 2

Qualified small businesses that cannot obtain business loans through normal lending channels can get loans directly from the Department of Trade and Industry.

Accepted Answer

A) True 
 B)False

Question 3

Isaac is looking for a business angel.His best chance of finding one is through:

Accepted Answer

A) contact with business associates, accountants and lawyers. 
B) his banker. 
C) advertisements in magazines. 
D) contact with friends and relatives. 
A) contact with business associates, accountants and lawyers. 
B) his banker. 
C) advertisements in magazines. 
D) contact with friends and relatives.

Question 4

Small business owners sometimes accept higher levels of debt because doing so permits them to retain all of the shares and full ownership.

Accepted Answer

A) True 
 B)False

Question 5

Most start-up investors limit their investing to businesses that offer potentially high returns within a one- to three-year period.

Accepted Answer

A) True 
 B)False

Question 6

The national government primarily provides funds to small businesses through:

Accepted Answer

A) venture capital companies. 
B) various small business funding programmes. 
C) business angels. 
D) the Financial Services Board. 
A) venture capital companies. 
B) various small business funding programmes. 
C) business angels. 
D) the Financial Services Board.

Question 7

For every business, there is a 'right' answer to the question of balancing debt and equity, and it is important that the small business owner finds that balance.

Accepted Answer

A) True 
 B)False

Question 8

In his presentation to his banker when he applies for a business loan to purchase additional equipment, Alan should emphasise:

Accepted Answer

A) how much profit the new equipment will generate. 
B) how he will be able to repay the principal of the loan. 
C) how energy-efficient the new equipment is. 
D) how much income he will generate for the bank. 
A) how much profit the new equipment will generate. 
B) how he will be able to repay the principal of the loan. 
C) how energy-efficient the new equipment is. 
D) how much income he will generate for the bank.

Question 9

Business angels, as opposed to venture capitalists, provide:

Accepted Answer

A) asset-based loans. 
B) factoring. 
C) informal venture capital. 
D) trade credit. 
A) asset-based loans. 
B) factoring. 
C) informal venture capital. 
D) trade credit.

Question 10

Discuss suggestions for an entrepreneur who is considering asking family or friends for financing.

Accepted Answer

To minimise the chance of damaging impor

Question 11

Gerrie, Lethabo and Arnav are a group of friends who have formed a company to raise capital for an investment in 20 franchises of Bennie's, a new sports bar concept.Arnav will be the general partner; Gerrie and Lethabo will be limited partners.These three are:

Accepted Answer

A) business angels. 
B) formal venture capitalists. 
C) creditors. 
D) informal venture capitalists. 
A) business angels. 
B) formal venture capitalists. 
C) creditors. 
D) informal venture capitalists.

Question 12

Connie owns a small but growing company that produces gorilla glass for smartphones.One possible source of funding might be:

Accepted Answer

A) Dell Computers, a well-known PC manufacturer. 
B) Intel, who produces computer chips. 
C) Microsoft, a company that markets software applications. 
D) Samsung, who sells smartphones. 
A) Dell Computers, a well-known PC manufacturer. 
B) Intel, who produces computer chips. 
C) Microsoft, a company that markets software applications. 
D) Samsung, who sells smartphones.

Private placement:

Qualified small businesses that cannot obtain business loans through normal lending channels can get loans directly from the Department of Trade and Industry.

Isaac is looking for a business angel.His best chance of finding one is through:

Small business owners sometimes accept higher levels of debt because doing so permits them to retain all of the shares and full ownership.

Most start-up investors limit their investing to businesses that offer potentially high returns within a one- to three-year period.

The national government primarily provides funds to small businesses through:

For every business, there is a 'right' answer to the question of balancing debt and equity, and it is important that the small business owner finds that balance.

In his presentation to his banker when he applies for a business loan to purchase additional equipment, Alan should emphasise:

Business angels, as opposed to venture capitalists, provide:

Discuss suggestions for an entrepreneur who is considering asking family or friends for financing.

Gerrie, Lethabo and Arnav are a group of friends who have formed a company to raise capital for an investment in 20 franchises of Bennie's, a new sports bar concept.Arnav will be the general partner; Gerrie and Lethabo will be limited partners.These three are:

Connie owns a small but growing company that produces gorilla glass for smartphones.One possible source of funding might be:

The Entrepreneurial Life

Integrity, Ethics And, Social Entrepreneurship

Starting a Small Business

Franchising and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

Planning for the Harvest

Building Customer Relationships

Product and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management and the Small Business

Managing Human Resources

Managing Operations

Managing the Firms Assets

Managing Risk in the Small Business

Filters

Exam 12: A Firms Sources of Financing

Private placement:

Qualified small businesses that cannot obtain business loans through normal lending channels can get loans directly from the Department of Trade and Industry.

Isaac is looking for a business angel.His best chance of finding one is through:

Small business owners sometimes accept higher levels of debt because doing so permits them to retain all of the shares and full ownership.

Most start-up investors limit their investing to businesses that offer potentially high returns within a one- to three-year period.

The national government primarily provides funds to small businesses through:

For every business, there is a 'right' answer to the question of balancing debt and equity, and it is important that the small business owner finds that balance.

In his presentation to his banker when he applies for a business loan to purchase additional equipment, Alan should emphasise:

Business angels, as opposed to venture capitalists, provide:

Discuss suggestions for an entrepreneur who is considering asking family or friends for financing.

Gerrie, Lethabo and Arnav are a group of friends who have formed a company to raise capital for an investment in 20 franchises of Bennie's, a new sports bar concept.Arnav will be the general partner; Gerrie and Lethabo will be limited partners.These three are:

Connie owns a small but growing company that produces gorilla glass for smartphones.One possible source of funding might be:

The Entrepreneurial Life

Integrity, Ethics And, Social Entrepreneurship

Starting a Small Business

Franchising and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

Planning for the Harvest

Building Customer Relationships

Product and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Business

Professional Management and the Small Business

Managing Human Resources

Managing Operations

Managing the Firms Assets

Managing Risk in the Small Business

Filters