Question 1

The average SBA loan is ________ years which is ________ than the average commercial small business loan.

Accepted Answer

A) 10; about the same as 
B) 12; equal to 
C) 12; longer 
D) 12; shorter 
A) 10; about the same as 
B) 12; equal to 
C) 12; longer 
D) 12; shorter

Question 2

Explain the role that commercial banks play in financing small businesses.What kinds of loans do banks offer small companies?

Accepted Answer

Commercial banks provide the greatest nu

Question 3

Grants to small businesses made to strengthen the local economy in cities and towns that are considered economically distressed are made by:

Accepted Answer

A) the Department of Housing and Urban Development. 
B) a local development company. 
C) U.S.Department of Agriculture's Rural Business Co-op services. 
D) the Economic Development Administration. 
A) the Department of Housing and Urban Development. 
B) a local development company. 
C) U.S.Department of Agriculture's Rural Business Co-op services. 
D) the Economic Development Administration.

Question 4

A SCOR filing has a number of advantages to it,such as the fact that:

Accepted Answer

A) partnerships can use it. 
B) it is recognized in every state. 
C) a company may raise between $3 and $5 million per year. 
D) there is no requirement for an audited financial statement if the offering is under $500,000. 
A) partnerships can use it. 
B) it is recognized in every state. 
C) a company may raise between $3 and $5 million per year. 
D) there is no requirement for an audited financial statement if the offering is under $500,000.

Question 5

A loan from a stockbroker based on the stocks and bonds in the customer's portfolio:

Accepted Answer

A) tends to be at a higher rate than a bank but easier to obtain. 
B) can be "called" for payment in a matter of hours or days. 
C) is for a maximum of $50,000. 
D) has a fixed repayment schedule and must be paid within 90 days. 
A) tends to be at a higher rate than a bank but easier to obtain. 
B) can be "called" for payment in a matter of hours or days. 
C) is for a maximum of $50,000. 
D) has a fixed repayment schedule and must be paid within 90 days.

Question 6

What is an IPO? What type of companies should go public? Outline the advantages and disadvantages of an IPO.Also,outline the steps a company should follow in taking a company public.

Accepted Answer

An initial public offering (IPO)is how a

Question 7

Commercial banks are lenders of last resort for small businesses.

Accepted Answer

A) True 
 B)False

Question 8

The U.S.Department of Agriculture's Rural Business Co-op Service provides financial assistance to businesses that create nonfarm employment opportunities in rural areas.

Accepted Answer

A) True 
 B)False

Question 9

Angles are an excellent source of ________ money,often willing to wait ________ years or longer to cash out their investment.

Accepted Answer

A) immediate; 5 
B) patient: 7 
C) long-term; 10 
D) passive; 20 
A) immediate; 5 
B) patient: 7 
C) long-term; 10 
D) passive; 20

Question 10

The Boat and Ski Shop,a small retail boat shop,would most likely rely on which of the following methods to finance its inventory?

Accepted Answer

A) Discounted installment contracts 
B) Floor planning 
C) Installment loans 
D) Trade credit 
A) Discounted installment contracts 
B) Floor planning 
C) Installment loans 
D) Trade credit

Question 11

The primary advantage of equity capital is:

Accepted Answer

A) its lower interest rate. 
B) that it is readily available to a large number of entrepreneurs from a variety of lenders. 
C) that it does not have to be repaid like a loan does. 
D) that it does not appear on a company's balance sheet. 
A) its lower interest rate. 
B) that it is readily available to a large number of entrepreneurs from a variety of lenders. 
C) that it does not have to be repaid like a loan does. 
D) that it does not appear on a company's balance sheet.

Question 12

The average venture capital firm screens about ________ investment proposals each year and ultimately invests in ________ of them.

Accepted Answer

A) 10,000; 100 to 125 
B) 1,200; 3 to 6 
C) 5,000; 6 to 10 
D) 500; 80 to 90 
A) 10,000; 100 to 125 
B) 1,200; 3 to 6 
C) 5,000; 6 to 10 
D) 500; 80 to 90

Question 13

SBIC financing would be attractive to an entrepreneur whose primary concern is maintaining majority ownership in her business,as SBICs are prohibited from obtaining a controlling interest in the companies in which they invest.

Accepted Answer

A) True 
 B)False

Question 14

The most common type of commercial bank loan granted to small businesses is:

Accepted Answer

A) the short-term loan. 
B) the line of credit agreement. 
C) floor planning. 
D) the unsecured term loan. 
A) the short-term loan. 
B) the line of credit agreement. 
C) floor planning. 
D) the unsecured term loan.

Question 15

A margin loan:

Accepted Answer

A) is one made by a commercial bank to a small business whose financial performance is marginal. 
B) carries much higher rates because the collateral supporting it is so risky. 
C) is a loan from an entrepreneur's stockbroker that uses the entrepreneur's investment portfolio as collateral for the loan. 
D) must be repaid within 60 days or is considered to be in default. 
A) is one made by a commercial bank to a small business whose financial performance is marginal. 
B) carries much higher rates because the collateral supporting it is so risky. 
C) is a loan from an entrepreneur's stockbroker that uses the entrepreneur's investment portfolio as collateral for the loan. 
D) must be repaid within 60 days or is considered to be in default.

Question 16

Asset-based loans are an expensive method of financing because of the cost of originating and maintaining them and the higher risk involved.

Accepted Answer

A) True 
 B)False

Question 17

A typical venture capital firm seeks investments in the $20,000 to $50,000 range and annual returns of 35-50 percent over three to five years.

Accepted Answer

A) True 
 B)False

Question 18

Entrepreneurs needing between $100,000 and $3 million in the current financial environment will likely find acquiring financing to be:

Accepted Answer

A) challenging. 
B) confusing. 
C) attainable. 
D) easy. 
A) challenging. 
B) confusing. 
C) attainable. 
D) easy.

Question 19

Loans from stockbrokers carry higher interest rates since the collateral stocks and bonds in the borrower's portfolio involve a high level of risk.

Accepted Answer

A) True 
 B)False

Question 20

The maximum loan under the SBA's Community Express Program is ________ with an SBA guarantee of ________ percent and turnaround times on loan requests can be ________ .

Accepted Answer

A) $250,000; 35; within 1 week 
B) $250,000; 85; within 5 business days 
C) $250,000; 85; within 36 hours 
D) $500,000; 85; within 36 hours 
A) $250,000; 35; within 1 week 
B) $250,000; 85; within 5 business days 
C) $250,000; 85; within 36 hours 
D) $500,000; 85; within 36 hours

The average SBA loan is years which is than the average commercial small business loan.

Explain the role that commercial banks play in financing small businesses.What kinds of loans do banks offer small companies?

Grants to small businesses made to strengthen the local economy in cities and towns that are considered economically distressed are made by:

A SCOR filing has a number of advantages to it,such as the fact that:

A loan from a stockbroker based on the stocks and bonds in the customer's portfolio:

What is an IPO? What type of companies should go public? Outline the advantages and disadvantages of an IPO.Also,outline the steps a company should follow in taking a company public.

Commercial banks are lenders of last resort for small businesses.

The U.S.Department of Agriculture's Rural Business Co-op Service provides financial assistance to businesses that create nonfarm employment opportunities in rural areas.

Angles are an excellent source of money,often willing to wait years or longer to cash out their investment.

The Boat and Ski Shop,a small retail boat shop,would most likely rely on which of the following methods to finance its inventory?

The primary advantage of equity capital is:

The average venture capital firm screens about investment proposals each year and ultimately invests in of them.

SBIC financing would be attractive to an entrepreneur whose primary concern is maintaining majority ownership in her business,as SBICs are prohibited from obtaining a controlling interest in the companies in which they invest.

The most common type of commercial bank loan granted to small businesses is:

A margin loan:

Asset-based loans are an expensive method of financing because of the cost of originating and maintaining them and the higher risk involved.

A typical venture capital firm seeks investments in the $20,000 to $50,000 range and annual returns of 35-50 percent over three to five years.

Entrepreneurs needing between $100,000 and $3 million in the current financial environment will likely find acquiring financing to be:

Loans from stockbrokers carry higher interest rates since the collateral stocks and bonds in the borrower's portfolio involve a high level of risk.

The maximum loan under the SBA's Community Express Program is with an SBA guarantee of percent and turnaround times on loan requests can be .

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

Filters

Exam 13: Sources of Financing: Debt and Equity

The average SBA loan is ________ years which is ________ than the average commercial small business loan.

Explain the role that commercial banks play in financing small businesses.What kinds of loans do banks offer small companies?

Grants to small businesses made to strengthen the local economy in cities and towns that are considered economically distressed are made by:

A SCOR filing has a number of advantages to it,such as the fact that:

A loan from a stockbroker based on the stocks and bonds in the customer's portfolio:

What is an IPO? What type of companies should go public? Outline the advantages and disadvantages of an IPO.Also,outline the steps a company should follow in taking a company public.

Commercial banks are lenders of last resort for small businesses.

The U.S.Department of Agriculture's Rural Business Co-op Service provides financial assistance to businesses that create nonfarm employment opportunities in rural areas.

Angles are an excellent source of ________ money,often willing to wait ________ years or longer to cash out their investment.

The Boat and Ski Shop,a small retail boat shop,would most likely rely on which of the following methods to finance its inventory?

The primary advantage of equity capital is:

The average venture capital firm screens about ________ investment proposals each year and ultimately invests in ________ of them.

SBIC financing would be attractive to an entrepreneur whose primary concern is maintaining majority ownership in her business,as SBICs are prohibited from obtaining a controlling interest in the companies in which they invest.

The most common type of commercial bank loan granted to small businesses is:

A margin loan:

Asset-based loans are an expensive method of financing because of the cost of originating and maintaining them and the higher risk involved.

A typical venture capital firm seeks investments in the $20,000 to $50,000 range and annual returns of 35-50 percent over three to five years.

Entrepreneurs needing between $100,000 and $3 million in the current financial environment will likely find acquiring financing to be:

Loans from stockbrokers carry higher interest rates since the collateral stocks and bonds in the borrower's portfolio involve a high level of risk.

The maximum loan under the SBA's Community Express Program is ________ with an SBA guarantee of ________ percent and turnaround times on loan requests can be ________ .

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

Filters

The average SBA loan is years which is than the average commercial small business loan.

Angles are an excellent source of money,often willing to wait years or longer to cash out their investment.

The average venture capital firm screens about investment proposals each year and ultimately invests in of them.

The maximum loan under the SBA's Community Express Program is with an SBA guarantee of percent and turnaround times on loan requests can be .