Question 1

Sharing or borrowing equipment is a good example of bootstrap financing.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following are examples of debt financing?

Accepted Answer

A) Commercial banks 
B) Commercial finance companies 
C) Lines of credit 
D) Issuing public stock 
E) Issuing private stock 
A) Commercial banks 
B) Commercial finance companies 
C) Lines of credit 
D) Issuing public stock 
E) Issuing private stock A, B, C

Question 3

Discuss advantages to using bootstrap financing.

Accepted Answer

Bootstrap financing refers to the practice of starting and growing a business using personal savings, revenue from the business, and other low-cost methods, rather than seeking external funding from investors or lenders. There are several advantages to using bootstrap financing for a business.

Firstly, bootstrap financing allows the business owner to maintain full control and ownership of the company. Without outside investors or lenders, the entrepreneur is free to make decisions without having to answer to anyone else. This can lead to greater flexibility and autonomy in running the business.

Additionally, bootstrap financing can help the business avoid debt. By using personal savings and revenue from the business to fund growth, the company can avoid taking on high-interest loans or giving up equity to investors. This can lead to a more stable financial position in the long run.

Furthermore, bootstrap financing encourages frugality and resourcefulness. When a business is forced to operate with limited resources, it can lead to creative problem-solving and a focus on efficiency. This can ultimately lead to a more sustainable and resilient business model.

Finally, bootstrap financing can lead to a stronger and more sustainable business in the long term. By growing the business organically and focusing on profitability from the start, the company can build a solid foundation for future growth and success.

Overall, bootstrap financing offers several advantages for entrepreneurs, including maintaining control, avoiding debt, fostering creativity, and building a strong business foundation. While it may require more patience and perseverance, the long-term benefits can be well worth the initial challenges.

Question 4

_______ credit is credit extended by a supplier.

Accepted Answer

A) Bank 
B) Bootstrap 
C) Trade 
D) Lease 
E) Home equity 
A) Bank 
B) Bootstrap 
C) Trade 
D) Lease 
E) Home equity

Question 5

What is MBDA, and how can it help in small businesses?

Accepted Answer

MBDA stands for Minority Business Develo

Question 6

_______ capital is funds that are borrowed for less than one year.

Accepted Answer

A) Long-term 
B) Interim 
C) Bootstrapping 
D) Initialized 
E) Short-term 
A) Long-term 
B) Interim 
C) Bootstrapping 
D) Initialized 
E) Short-term

Question 7

_______ capital covers long-term projects lasting longer than five years.

Accepted Answer

A) Intermediate 
B) Short-term 
C) Long-term 
D) Interim 
E) Investment 
A) Intermediate 
B) Short-term 
C) Long-term 
D) Interim 
E) Investment

Question 8

Home equity loans are not available as bootstrap financing.

Accepted Answer

A) True 
 B)False

Question 9

A supplier is someone that the entrepreneur will have to rely on for prompt deliveries, undamaged goods, and extended credit in times of emergency; therefore, you should not just pick any first supplier.

Accepted Answer

A) True 
 B)False

Question 10

A consulting service offered by the SBA is _______.

Accepted Answer

A) SCARE (Service Citizens and Retired Entities) 
B) MBDA (Minority Business Development Agency) 
C) NAACP (National Association for the Advancement of Colored People) 
D) SCORE (Service Corps of Retired Executives) 
E) Round Table Companies 
A) SCARE (Service Citizens and Retired Entities) 
B) MBDA (Minority Business Development Agency) 
C) NAACP (National Association for the Advancement of Colored People) 
D) SCORE (Service Corps of Retired Executives) 
E) Round Table Companies

Question 11

Trade credit cannot be obtained from a commercial bank.

Accepted Answer

A) True 
 B)False

Question 12

Corporate venture capital is a form of venture capital provided by large firms.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following are advantages of leasing equipment?

Accepted Answer

A) Flexibility with equipment needs and payment schedules 
B) Smaller capital requirements 
C) Leasing company offers maintenance service for equipment 
D) Leasing offers a way to beat the obsolescence problem 
E) The absence of depreciation 
A) Flexibility with equipment needs and payment schedules 
B) Smaller capital requirements 
C) Leasing company offers maintenance service for equipment 
D) Leasing offers a way to beat the obsolescence problem 
E) The absence of depreciation

Question 14

It takes money to make money.

Accepted Answer

A) True 
 B)False

Question 15

_______ is generally at a pre-revenue stage, and seed capital is needed to conduct research and development, cover initial costs, and attract the attention of venture capitalists.

Accepted Answer

A) Commercial bank financing 
B) Seed financing 
C) Savings 
D) Friends' money 
E) Angel fund 
A) Commercial bank financing 
B) Seed financing 
C) Savings 
D) Friends' money 
E) Angel fund

Question 16

Define debt financing and identify sources of debt financing.

Accepted Answer

Debt financing is a method of raising ca

Question 17

Two major types of financing are ______ and _______ financing.

Accepted Answer

A) equity, debt 
B) income, loss 
C) net worth, real worth 
D) corporate, non-corporate 
E) asset, liability 
A) equity, debt 
B) income, loss 
C) net worth, real worth 
D) corporate, non-corporate 
E) asset, liability

Question 18

_______ refers to money provided by investors to startup firms and small businesses with perceived long-term growth potential.

Accepted Answer

A) Seed capital 
B) Debt financing 
C) IPO sale 
D) Venture capital 
E) Private placement 
A) Seed capital 
B) Debt financing 
C) IPO sale 
D) Venture capital 
E) Private placement

Question 19

A/n _______ is an individual willing to invest in promising start-up opportunities.

Accepted Answer

A) buffer 
B) angel 
C) Good Samaritan 
D) partner 
E) venturists 
A) buffer 
B) angel 
C) Good Samaritan 
D) partner 
E) venturists

Question 20

Lines of credit usually carry higher interest rates than do credit cards.

Accepted Answer

A) True 
 B)False

Sharing or borrowing equipment is a good example of bootstrap financing.

Which of the following are examples of debt financing?

Discuss advantages to using bootstrap financing.

_______ credit is credit extended by a supplier.

What is MBDA, and how can it help in small businesses?

_______ capital is funds that are borrowed for less than one year.

_______ capital covers long-term projects lasting longer than five years.

Home equity loans are not available as bootstrap financing.

A supplier is someone that the entrepreneur will have to rely on for prompt deliveries, undamaged goods, and extended credit in times of emergency; therefore, you should not just pick any first supplier.

A consulting service offered by the SBA is _______.

Trade credit cannot be obtained from a commercial bank.

Corporate venture capital is a form of venture capital provided by large firms.

Which of the following are advantages of leasing equipment?

It takes money to make money.

_______ is generally at a pre-revenue stage, and seed capital is needed to conduct research and development, cover initial costs, and attract the attention of venture capitalists.

Define debt financing and identify sources of debt financing.

Two major types of financing are and _ financing.

_______ refers to money provided by investors to startup firms and small businesses with perceived long-term growth potential.

A/n _______ is an individual willing to invest in promising start-up opportunities.

Lines of credit usually carry higher interest rates than do credit cards.

Whats Entrepreneurship About Do You Want to Start Your Own Business

New Venture Options: Do You Want to Start a New Business, Buy One, Be a Franchisee, or a Corporate or Nonprofit Entrepreneur

What Business How Do You Find Opportunities and Develop a Business Model

How Do You Assess the Chances of Venture Success Feasibility Analysis and Protecting the Business Model Legally

Business Planning: Whats Your Legal Form and Strategy

The Marketing Plan: Who Are Your Customers

The Location and Layout Plan: What Facilities Do You Need

The Operations Plan: How Will You Make the Product

The Human Resource Plan: How Do You Develop the New Venture Team and Employees

The Finance Plan: How Much Money Do You Need

Controls: How Do You Keep the New Venture on Track

Filters

Exam 11: Sources of Funds: Where Do You Get the Money

Sharing or borrowing equipment is a good example of bootstrap financing.

Which of the following are examples of debt financing?

Discuss advantages to using bootstrap financing.

_______ credit is credit extended by a supplier.

What is MBDA, and how can it help in small businesses?

_______ capital is funds that are borrowed for less than one year.

_______ capital covers long-term projects lasting longer than five years.

Home equity loans are not available as bootstrap financing.

A supplier is someone that the entrepreneur will have to rely on for prompt deliveries, undamaged goods, and extended credit in times of emergency; therefore, you should not just pick any first supplier.

A consulting service offered by the SBA is _______.

Trade credit cannot be obtained from a commercial bank.

Corporate venture capital is a form of venture capital provided by large firms.

Which of the following are advantages of leasing equipment?

It takes money to make money.

_______ is generally at a pre-revenue stage, and seed capital is needed to conduct research and development, cover initial costs, and attract the attention of venture capitalists.

Define debt financing and identify sources of debt financing.

Two major types of financing are ______ and _______ financing.

_______ refers to money provided by investors to startup firms and small businesses with perceived long-term growth potential.

A/n _______ is an individual willing to invest in promising start-up opportunities.

Lines of credit usually carry higher interest rates than do credit cards.

Whats Entrepreneurship About Do You Want to Start Your Own Business

New Venture Options: Do You Want to Start a New Business, Buy One, Be a Franchisee, or a Corporate or Nonprofit Entrepreneur

What Business How Do You Find Opportunities and Develop a Business Model

How Do You Assess the Chances of Venture Success Feasibility Analysis and Protecting the Business Model Legally

Business Planning: Whats Your Legal Form and Strategy

The Marketing Plan: Who Are Your Customers

The Location and Layout Plan: What Facilities Do You Need

The Operations Plan: How Will You Make the Product

The Human Resource Plan: How Do You Develop the New Venture Team and Employees

The Finance Plan: How Much Money Do You Need

Controls: How Do You Keep the New Venture on Track

Filters

Two major types of financing are and _ financing.