Exam 7: Startup Capital: The Injection

Long-term loans (10 or more years) require collateral but are generally available as an option to new businesses.

For warehouse receipt loans, inventory is stored in warehouses, and a receipt for the inventory is given to the bank as security for a loan to pay off the supplier.

Intermediate and Long-Term loans can require which of the following conditions?

Describe and explain some of the risks mentioned in the chapter that should be considered before making a crowdfunding investment.

Ownership equity represents owner's investment in a company and carries a specific date for repayment.

Internal Funds, often overlooked by entrepreneurs, are:

Equity investment, usually through the sale of common stock, is a ____________ part of a firm's capital structure.

What is an informal agreement (no legal obligation) between the borrower and the bank as to the maximum amount of credit the bank will provide the borrower at any one time.

Most new ventures are started by "bootstrapping", which is initiating the venture on marginal financial resources from personal savings, family, and friends.

The ___________________ and ________________________ are highly competitive programs that encourage small business to explore their technological potential and provide the incentive to profit from commercialization opportunities. (Select 2)

____________ is a commonly overlooked capital source, by which suppliers, in ef?fect, help finance operations by agreeing to take payment for merchandise at an agreed upon time after delivery.

Small Business Investment Companies (SBICs) can only invest in small businesses, defined as businesses with tangible net worth of less than ___________and an average of _________in net income or less over the previous two years at the time of investment

The ___________ and ______________ impact the appropriate source of financing for an entrepreneurial venture. (Select the two that best apply)

The most frequently used source of startup financing is:

Which type of loan can be made against a firm's outstanding receivables; allowing the bank to be repaid as they are collected.

The most common forms of short-term loans are ________________ and ________________.

Angel investors are private individuals who invest informal capital into entrepreneurial ventures. They are usually persons who have moderate to significant business experience and affluent professionals.

Discuss the positive and negative aspects of choosing to finance your venture through equity capital.

Which of the following can legally be used as security on a collateral loan?

Intermediate-term loans typically provide capital for periods from ____________years