Exam 13: Sources of Financing: Debt and Equity

Under the SBA's Patriot Express Program,the ceiling is ________ and the SBA guarantees up to ________ percent of the loan.

The most important ingredient that venture capitalists look for in judging the potential success of a small business is a competent management team.

The most common method used by commercial finance companies to provide credit to small businesses is:

Unlike venture capital firms and most other institutional investors,angels typically invest in businesses in their earliest phases,providing the seed capital needed to get the business going.

In an initial public offering,the underwriter,or investment banker,serves to:

The National Small Business Association reports that its members consistently identify access to capital as one of the top ten challenges their businesses face.

Which of the following is not an advantage of a Small Company Offering Registration (SCOR)?

In startup companies,raising capital can easily consume as much as one-half of the entrepreneur's time and take many months to complete.

The most common form of secured credit is accounts receivable financing in which businesses can usually borrow an amount equal to 55-80 percent of its receivables.

While equity capital represents the personal investment of the owner(s)of a business and does not have to be repaid,debt capital is a liability that must be repaid with interest in the future.

Sarah's aunt and cousin have offered to provide some financial assistance for her new business.Should an entrepreneur turn to friends and family members for money to launch a company? Why or why not? If so,under what conditions?

If the value of the borrower's collateral drops,a stockbroker can make a ________,requiring the borrower to provide more collateral for his margin loan.

Before entering into any partnership arrangement,entrepreneurs must consider:

Private placement debt is a hybrid between a conventional loan and a bond.

The SBA's Section 504 Certified Development Company Program (CDC),which provides long-term,fixed-asset financing,is designed to encourage small businesses to expand their facilities and to create jobs.

The standardized 50-question fill-in-the-blank registration statement that an entrepreneur uses when making a Small Company Offering Registration (SCOR)public stock offering serves as:

When financing a small company's purchase of real estate,a bank typically will lend up to ________ percent of the property's value and will allow lengthier repayment schedules.

Typically,a lender is willing to lend a small business owner 100 percent of the value of accounts receivable pledged as collateral.

Foreign corporations invest in U.S.small businesses through strategic partnerships in order to gain access to new technology,new products,and U.S.markets.

Approximately ________ percent of SBA Community Express loans go to minority entrepreneurs.