Exam 4: Getting Your E-Business Off the Ground

Which of the following organizations focuses on matching entrepreneurs with angel investors?

Venture capitalist firms generally offer fee- or equity-based business development and administrative services such as office space, telecommunications hookups, reception and conference room areas, computer networking facilities, mentoring, and referrals to potential investors.

It is unusual for potential investors to ask questions during the initial meeting to discuss a new business proposal.

The Austin Technology Incubator (ATI), the Advanced Technology Development Center (ATDC), and the Illinois Technology Enterprise Center (ITEC) are all examples of a non-profit business incubator.

Many entrepreneurs discover that they can tap their network of friends and family for the financing necessary to cover basic startup costs.

A business incubator may be a non-profit organization sponsored by local businesses, governments, and universities to nurture entrepreneurship in a local geographic area.

An entrepreneur should consider using an easy-to-understand slide show presentation when_______________a new business idea to potential investors.

A(n)_______________of tapping a friends and family network for startup money is that friends and family know and trust the entrepreneur.

An accredited investor who joins an angel investment club must have:

A venture capitalist firm is a professional investment company that provides funds for startup businesses in exchange for an equity position in the new business.

For many entrepreneurs, starting a new e-business under the wing of a commercial business incubator may be most appealing because it offers access to expensive services at a low cost.

Anyone can join an angel investment club regardless of his or her net worth or annual income.

Angel investors can provide experience and advice as well as the first significant funds for a startup e-business.

The easiest startup money an entrepreneur may ever find can come from his or her:

The first source of startup money an entrepreneur often taps is:

A commercial business incubator generally offers the same development and support services as a non-profit business incubator.

A short marketing document that summarizes a new business idea is called a(n) _______________document.

When soliciting startup funds, an entrepreneur should provide the same_______________to a family member or friend that he or she would provide to any potential investor.

List the steps an entrepreneur might take to locate a venture capitalist firm and secure the firm's interest in his or her new business idea.

The downside of receiving funding from a(n)_______________is giving up a sizable ownership stake in the new business.