Exam 13: Sources of Financing: Debt and Equity

Not only must a company meet SEC requirements for a public offering,but it also must meet securities laws in all states in which the issue is sold.

In an initial public offering,a company raises capital by selling shares of its stock to the general public for the first time.

If a company doing business only within the U.S.is investigating SBA loans exceeding $1,000,000 to use for acquiring fixed assets,what programs may be a viable consideration?

Less than ________ percent of all U.S.companies are publicly held corporations.

The document outlining the details of the agreement between the entrepreneur and the stock underwriter is called:

Your text describes a variety of common sources of equity capital.Outline and briefly describe five.

Competing for Small Business Innovation Research Program (SBIR)loans is intense; only 7 percent of the small companies that apply receive funding.

Loans made under the SBA's Disaster Loan Program carry below-market interest rates and are designed to provide assistance to small businesses that have been the victims of a variety of disasters,such as hurricanes,floods,earthquakes,and tornadoes,as well as the terrorist attacks of September 11,2001.

Rather than relying primarily on a single source of funds as they have in the past,entrepreneurs today must piece together their capital from multiple sources,a method known as layered financing.

It is extremely difficult for a startup company with no track record of success to raise money with a public stock offering.

When a small business is refused a loan because it is not profitable and deemed a poor credit risk,the owner can usually turn to ________ as a source of short-term funds.

The single most important ingredient in making a successful public offering is:

In a Regulation D stock offering,the company:

A federally sponsored program which offers loan guarantees to create and expand businesses in areas with below-average income and high unemployment is called:

Investment bankers who underwrite public stock offerings typically look for all but which of the following characteristics in a small company?

In a typical commercial or industrial loan,a savings and loan association will lend up to 80 percent of the real property's value with a repayment schedule of up to 30 years.

When searching for capital to launch their companies,entrepreneurs should remember several "secrets" to successful financing.Which of the following is not one of those secrets?

The capital ceiling on a SCOR issue is:

Financing through ________ is similar to trade credit and this source of financing offers reasonable credit terms with only a modest down payment with the balance financed over the life of the purchase.

Typically,the entire process of going public takes ________,but it can take much longer if the issuing company is not properly prepared for the process.