Question 1

The SBA's primary business loan program is:

Accepted Answer

A)  the Microloan. 
B)  the SBIR. 
C)  the 7(a) loan. 
D)  the 504. 
A)  the Microloan. 
B)  the SBIR. 
C)  the 7(a) loan. 
D)  the 504. C

Question 2

Installment loans are typically given for a period of 30-40 days.

Accepted Answer

A) True 
 B)False  True

Question 3

When using equity financing from family and friends:

Accepted Answer

A)  business arrangements should be in good faith. 
B)  details such as terms of the investment and rights of the investor need not be in writing. 
C)  they can be more patient than other investors in when they expect a return on investment. 
D)  since the amount of money is usually small, they do not have an ownership position in the venture. 
A)  business arrangements should be in good faith. 
B)  details such as terms of the investment and rights of the investor need not be in writing. 
C)  they can be more patient than other investors in when they expect a return on investment. 
D)  since the amount of money is usually small, they do not have an ownership position in the venture. C

Question 4

SBA 7(a)loans can be used for such things as equipment and land.

Accepted Answer

A) True 
 B)False

Question 5

________ financing entails obtaining funds for the company in exchange for ownership.

Accepted Answer

A)  Bootstrap 
B)  Equity 
C)  Debt 
D)  Commercial 
A)  Bootstrap 
B)  Equity 
C)  Debt 
D)  Commercial

Question 6

Outside capital should be sought only after all possible internal sources of funds have been explored.

Accepted Answer

A) True 
 B)False

Question 7

Trust receipts are inventory loans used to finance floor plans of retailers such as automobile dealers.

Accepted Answer

A) True 
 B)False

Question 8

Extending payment terms from suppliers is an example of generating funds internally.

Accepted Answer

A) True 
 B)False

Question 9

In which phase of the SBIR grant process are funds used to create a prototype of a product or service

Accepted Answer

A)  Phase I 
B)  Phase II 
C)  Phase III 
D)  Phase IV 
A)  Phase I 
B)  Phase II 
C)  Phase III 
D)  Phase IV

Question 10

Briefly define debt financing and equity financing.Which key factors favor one type of financing over another

Accepted Answer

Debt financing involves an interest-bear

Question 11

The SBA guarantees all loans for 100 percent of the loan amount.

Accepted Answer

A) True 
 B)False

Question 12

The sponsoring company in a R&D limited partnership is the limited partner.

Accepted Answer

A) True 
 B)False

Question 13

What type of cash flow financing loan can make funds available for up to 10 years

Accepted Answer

A)  Character loans 
B)  Real estate loans 
C)  Long-term loans 
D)  Installment loans 
A)  Character loans 
B)  Real estate loans 
C)  Long-term loans 
D)  Installment loans

Question 14

The SBA's Microloan program provides short-term loans of up to $100,000 to small businesses for working capital or purchase of inventory.

Accepted Answer

A) True 
 B)False

Question 15

In a straight commercial loan funds are typically used for what time period

Accepted Answer

A)  Less than 30 days 
B)  30-90 days 
C)  180 days 
D)  Up to one year 
A)  Less than 30 days 
B)  30-90 days 
C)  180 days 
D)  Up to one year

Question 16

Private offerings involve more time,expense,and paperwork than public offerings.

Accepted Answer

A) True 
 B)False

Question 17

The SBA's 7(a)Loan Guaranty helps qualified small businesses obtain financing when they can't get a business loan through regular lending channels.

Accepted Answer

A) True 
 B)False

Question 18

Research and development limited partnerships provide funds for entrepreneurs in high-tech fields through:

Accepted Answer

A)  debt from lenders. 
B)  equity from present owners. 
C)  investors looking for tax shelters. 
D)  cash from internal operations. 
A)  debt from lenders. 
B)  equity from present owners. 
C)  investors looking for tax shelters. 
D)  cash from internal operations.

Question 19

Which of the following is not one of the five Cs of lending

Accepted Answer

A)  Caution 
B)  Character 
C)  Conditions 
D)  Capacity 
A)  Caution 
B)  Character 
C)  Conditions 
D)  Capacity

Question 20

When the bank advances a large percentage of the invoice price of goods and is paid on a pro-rata basis when inventory is sold this is called:

Accepted Answer

A)  a trust receipt. 
B)  a factoring arrangement. 
C)  an accounts payable loan. 
D)  a sale-leaseback arrangement. 
A)  a trust receipt. 
B)  a factoring arrangement. 
C)  an accounts payable loan. 
D)  a sale-leaseback arrangement.

The SBA's primary business loan program is:

Installment loans are typically given for a period of 30-40 days.

When using equity financing from family and friends:

SBA 7(a)loans can be used for such things as equipment and land.

________ financing entails obtaining funds for the company in exchange for ownership.

Outside capital should be sought only after all possible internal sources of funds have been explored.

Trust receipts are inventory loans used to finance floor plans of retailers such as automobile dealers.

Extending payment terms from suppliers is an example of generating funds internally.

In which phase of the SBIR grant process are funds used to create a prototype of a product or service

Briefly define debt financing and equity financing.Which key factors favor one type of financing over another

The SBA guarantees all loans for 100 percent of the loan amount.

The sponsoring company in a R&D limited partnership is the limited partner.

What type of cash flow financing loan can make funds available for up to 10 years

The SBA's Microloan program provides short-term loans of up to $100,000 to small businesses for working capital or purchase of inventory.

In a straight commercial loan funds are typically used for what time period

Private offerings involve more time,expense,and paperwork than public offerings.

The SBA's 7(a)Loan Guaranty helps qualified small businesses obtain financing when they can't get a business loan through regular lending channels.

Research and development limited partnerships provide funds for entrepreneurs in high-tech fields through:

Which of the following is not one of the five Cs of lending

When the bank advances a large percentage of the invoice price of goods and is paid on a pro-rata basis when inventory is sold this is called:

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters

Exam 11: Sources of Capital

The SBA's primary business loan program is:

Installment loans are typically given for a period of 30-40 days.

When using equity financing from family and friends:

SBA 7(a)loans can be used for such things as equipment and land.

________ financing entails obtaining funds for the company in exchange for ownership.

Outside capital should be sought only after all possible internal sources of funds have been explored.

Trust receipts are inventory loans used to finance floor plans of retailers such as automobile dealers.

Extending payment terms from suppliers is an example of generating funds internally.

In which phase of the SBIR grant process are funds used to create a prototype of a product or service

Briefly define debt financing and equity financing.Which key factors favor one type of financing over another

The SBA guarantees all loans for 100 percent of the loan amount.

The sponsoring company in a R&D limited partnership is the limited partner.

What type of cash flow financing loan can make funds available for up to 10 years

The SBA's Microloan program provides short-term loans of up to $100,000 to small businesses for working capital or purchase of inventory.

In a straight commercial loan funds are typically used for what time period

Private offerings involve more time,expense,and paperwork than public offerings.

The SBA's 7(a)Loan Guaranty helps qualified small businesses obtain financing when they can't get a business loan through regular lending channels.

Research and development limited partnerships provide funds for entrepreneurs in high-tech fields through:

Which of the following is not one of the five Cs of lending

When the bank advances a large percentage of the invoice price of goods and is paid on a pro-rata basis when inventory is sold this is called:

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters