Exam 12: A Firm S Sources of Financing

If Joan is applying for a loan for a shelving system to improve her retail sales where the system will serve as collateral, what type of loan would be the most appropriate?

Harlan's customers have been a little slow in paying their invoices, and he is short on cash to pay his quarterly taxes.  Harlan should consider:

Althouth not the primary source of financing for most small business startups, another source of early financing is:

Generally, as long as a firm's operating income return on its assets in greater than the cost of debt, the owners' return on equity investment will decrease as the firm uses more debt.

Granville owns a construction company and would like to purchase a mobile construction office. The bank would likely offer him a _____ mortgage.

Qualified small businesses that cannot obtain business loans through normal lending channels can get loans directly from the SBA through its 7(a) Loan Guaranty Program.

A chattel mortgage is a loan for which real property, such as land or a building, serves as collateral.

Fans set up a crowdfunding account to produce new, not-for-profit episodes of Star Trek.  This type of crowdfunding uses the ___________ approach.

In addition to the interest rate on his business loan, Paul should also give attention to:

Penelope is planning to launch her first business.  She will most likely acquire her initial financing from:

Joann is buying an existing convenience store.  When she considers which bank to use, her best choice would be:

Galen runs an Greek restaurant and is currently considering leasing or purchasing some updated equipment.  What statement is correct?

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

If a company has a signed purchase order from a creditworthy customer and the gross profit margin on the order is anticipated to be 36 percent, purchase-order financing is likely.

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

Describe four different loan covenants that a bank may impose on a loan

Before accepting money from a business angel, the entrepreneur should:

Sondra is a business angel who is looking for a start-up company in which to invest. Which company would she most likely invest in based on current research?

Venture capitalists restrict their investment in startup companies.

The age of a company has little impact on the types of financing available to it.