A) tend to prefer later round financing over funding raw start-ups. B) can provide both debt and equity capital to small businesses. C) are prohibited from obtaining a controlling interest in the companies in which they invest. D) All of the above A) tend to prefer later round financing over funding raw start-ups. B) can provide both debt and equity capital to small businesses. C) are prohibited from obtaining a controlling interest in the companies in which they invest. D) All of the above

A) were chartered by the SBA to help startup companies find private financing from commercial banks and finance companies. B) provide short-term debt-based capital to small businesses through the sale of the debt to private investors. C) cannot invest in or lend money to a business for more than five years. D) were created by the Small Business Investment Act to use a combination of private and federal guaranteed debt to provide long-term capital to small businesses. A) were chartered by the SBA to help startup companies find private financing from commercial banks and finance companies. B) provide short-term debt-based capital to small businesses through the sale of the debt to private investors. C) cannot invest in or lend money to a business for more than five years. D) were created by the Small Business Investment Act to use a combination of private and federal guaranteed debt to provide long-term capital to small businesses.

Exam 13: Sources of Financing: Debt and Equity

The capital ceiling on a Small Company Offering Registration (SCOR)is $1 million (except in Texas,where there is no limit),and the price of each share must be at least $5.

(True/False)

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(30)

Question 41

Disaster loans carry below-market interest rates and terms as long as ________ years

(Multiple Choice)

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Question 42

Private placements of debt offer all but which of the following advantages?

(Multiple Choice)

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Question 43

A(n)________ is a private nonprofit financial institution that will make small loans to its members for the purpose of starting a business.

(Multiple Choice)

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Question 44

Most entrepreneurs seeking money to launch their businesses need more than $100,000 in startup capital.

(True/False)

4.9/5

(42)

Question 45

Before making a loan to a business startup,banks prefer to see:

(Multiple Choice)

4.9/5

(43)

Question 46

In asset-based borrowing,the ________ is the percentage of an asset's value that a lender will lend.

(Multiple Choice)

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Question 47

The loans from commercial finance companies to small businesses:

(Multiple Choice)

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Question 48

SBICs:

(Multiple Choice)

4.8/5

(25)

Question 49

The majority of the loans a commercial finance company makes are unsecured by collateral.

(True/False)

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(37)

Question 50

A public stock sale is an effective method of raising large amounts of capital,but it can be an expensive and time-consuming process filled with regulatory nightmares.

(True/False)

4.8/5

(40)

Question 51

SBICs:

(Multiple Choice)

4.8/5

(27)

Question 52

Studies suggest that ________ banks are most likely to lend money to small businesses.

(Multiple Choice)

4.8/5

(42)

Question 53

The CommunityExpress Program provides loans to communities that have suffered a natural disaster.

(True/False)

4.8/5

(41)

Question 54

Private investors,or angels,seek 60 to 75 percent annual return on investment,which is much higher than those of professional venture capitalists,and tend to take a 51 percent + share of the business.

(True/False)

4.8/5

(42)

Question 55

Explain to Jim the possible (and realistic)sources of capital for expansion.Where would you recommend that he go for the funds he needs? Why?

(Essay)

4.9/5

(31)

Question 56

Malcolm wants to start a business in the prosperous little town of Grove City,a rural town of 10,000 about 65 miles from Pittsburgh,Pennsylvani a.His business will create 25 manufacturing jobs.What federal agency would most likely be interested in guaranteeing a bank loan for Malcolm?

(Multiple Choice)

4.8/5

(43)

Question 57

________ is a method of financing frequently used by retailers of "big ticket items" such as autos.

(Multiple Choice)

4.8/5

(40)

Question 58

A company that is experiencing rapid expansion has similar capital requirements as those of a fledgling business.

(True/False)

4.7/5

(30)

Question 59

What is asset-based borrowing? Explain the two major types of asset-based borrowing,including the pros and cons of each.

(Essay)

4.9/5

(45)

Question 60

Showing 41 - 60 of 216

The capital ceiling on a Small Company Offering Registration (SCOR)is $1 million (except in Texas,where there is no limit),and the price of each share must be at least $5.

Disaster loans carry below-market interest rates and terms as long as ________ years

Private placements of debt offer all but which of the following advantages?

A(n)________ is a private nonprofit financial institution that will make small loans to its members for the purpose of starting a business.

Most entrepreneurs seeking money to launch their businesses need more than $100,000 in startup capital.

Before making a loan to a business startup,banks prefer to see:

In asset-based borrowing,the ________ is the percentage of an asset's value that a lender will lend.

The loans from commercial finance companies to small businesses:

SBICs:

The majority of the loans a commercial finance company makes are unsecured by collateral.

A public stock sale is an effective method of raising large amounts of capital,but it can be an expensive and time-consuming process filled with regulatory nightmares.

SBICs:

Studies suggest that ________ banks are most likely to lend money to small businesses.

The CommunityExpress Program provides loans to communities that have suffered a natural disaster.

Private investors,or angels,seek 60 to 75 percent annual return on investment,which is much higher than those of professional venture capitalists,and tend to take a 51 percent + share of the business.

Explain to Jim the possible (and realistic)sources of capital for expansion.Where would you recommend that he go for the funds he needs? Why?

Malcolm wants to start a business in the prosperous little town of Grove City,a rural town of 10,000 about 65 miles from Pittsburgh,Pennsylvani a.His business will create 25 manufacturing jobs.What federal agency would most likely be interested in guaranteeing a bank loan for Malcolm?

________ is a method of financing frequently used by retailers of "big ticket items" such as autos.

A company that is experiencing rapid expansion has similar capital requirements as those of a fledgling business.

What is asset-based borrowing? Explain the two major types of asset-based borrowing,including the pros and cons of each.

The Foundations of Entrepreneurship

Inside the Entrepreneurial Mind: From Ideas to Reality

Designing a Competitive Business Model and Building a Solid Strategic Plan

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Forms of Business Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Building a Powerful Marketing Plan

E-Commerce and the Entrepreneur

Pricing Strategies

Creating a Successful Financial Plan

Managing Cash Flow

Choosing the Right Location and Layout

Global Opportunities

Building a Team and Management Succession

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