Question 1

Small businesses devastated by floods,earthquakes,fires,and other maladies would seek assistance through which SBA loan program?

Accepted Answer

A) Calamity 
B) Catastrophic 
C) Disaster 
D) SBIR 
A) Calamity 
B) Catastrophic 
C) Disaster 
D) SBIR

Question 2

Commercial finance companies are willing to take more risk in making loans than commercial banks,but they also charge a higher interest rate.

Accepted Answer

A) True 
 B)False

Question 3

Vendors and suppliers often are willing to finance a small business owner's purchase of goods for 30 to 60 days,interest free,which is usually easier for small businesses than obtaining a bank loan.

Accepted Answer

A) True 
 B)False

Question 4

Regulation D Rule 504 (SCOR)offerings has a $1 million ceiling on the amount raised in any 12-month period.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not true regarding the SBA Low Doc Loan Program?

Accepted Answer

A) It was created to help reduce the paperwork requirements involved in SBA loans. 
B) It allows small businesses to use a simple one-page application for all loan applications and has cut response time to these loans significantly. 
C) To qualify for a Low Doc loan,a company must have average sales below $5 million during the previous three years and employ fewer than 100 people. 
D) These loans may only be used for the purchase of fixed assets. 
A) It was created to help reduce the paperwork requirements involved in SBA loans. 
B) It allows small businesses to use a simple one-page application for all loan applications and has cut response time to these loans significantly. 
C) To qualify for a Low Doc loan,a company must have average sales below $5 million during the previous three years and employ fewer than 100 people. 
D) These loans may only be used for the purchase of fixed assets.

Question 6

When a bank makes enough SBA-guaranteed loans to become a ________ lender,the SBA promises a faster turnaround time for the loan decision,typically 3 to 10 business days.

Accepted Answer

A) preferred 
B) qualified 
C) certified 
D) LDC 
A) preferred 
B) qualified 
C) certified 
D) LDC

Question 7

To be eligible for the simplified registration process under Regulation S-B,a company must:

Accepted Answer

A) be based in either the United States or Canada. 
B) have revenues of less than $25 million. 
C) have outstanding securities of less than $25 million. 
D) All of the above 
A) be based in either the United States or Canada. 
B) have revenues of less than $25 million. 
C) have outstanding securities of less than $25 million. 
D) All of the above

Question 8

The first place an entrepreneur should look for startup capital is:

Accepted Answer

A) a bank. 
B) a venture capitalist. 
C) the Small Business Administration. 
D) his own savings. 
A) a bank. 
B) a venture capitalist. 
C) the Small Business Administration. 
D) his own savings.

Question 9

What other sources of capital would you suggest that Christine explore?

Accepted Answer

Other sources of debt capital are anothe

Question 10

Unlike equity financing,debt financing does not require an entrepreneur to dilute her ownership interest in the company.

Accepted Answer

A) True 
 B)False

Question 11

Asset-based borrowing enables a small company to borrow money by pledging otherwise idle assets such as accounts receivable and inventory.

Accepted Answer

A) True 
 B)False

Question 12

Review the various loan programs under the Small Business Administration designed to help finance businesses like Christine's.Which of these programs would most likely help Christine get the capital she needs?

Accepted Answer

Christine should seek out a bank that is

Question 13

Entrepreneurs are most likely to give up more equity in their businesses in the startup phase than in any other.

Accepted Answer

A) True 
 B)False

Question 14

Asset-based borrowing permits small businesses:

Accepted Answer

A) to borrow up to 100 percent of the value of their inventory or their accounts receivable for the money they need for long-term goals. 
B) to use normally unproductive assets such as accounts receivable and inventory. 
C) to obtain loans more easily but with less borrowing power than using unsecured lines of credit. 
D) access to a source of funds ideally suited for long-term financing needs. 
A) to borrow up to 100 percent of the value of their inventory or their accounts receivable for the money they need for long-term goals. 
B) to use normally unproductive assets such as accounts receivable and inventory. 
C) to obtain loans more easily but with less borrowing power than using unsecured lines of credit. 
D) access to a source of funds ideally suited for long-term financing needs.

Question 15

One of the disadvantages of angels is that they are typically not willing to wait more than three years to cash out their investments.

Accepted Answer

A) True 
 B)False

Question 16

A company pledging its inventory,accounts receivables,or fixtures as collateral for a loan is using:

Accepted Answer

A) floor planning. 
B) asset-based financing. 
C) trade credit. 
D) margin loan. 
A) floor planning. 
B) asset-based financing. 
C) trade credit. 
D) margin loan.

Question 17

Networking is one of the best ways to find angels,who usually prefer to invest in local businesses operating in industries they know something about.

Accepted Answer

A) True 
 B)False

Question 18

Banks tend to be very conservative in their lending practices and prefer to make loans to established small businesses rather than to high-risk business start-ups.

Accepted Answer

A) True 
 B)False

Question 19

A/An ________ is a private,for-profit organization that purchases equity positions in young businesses that will potentially produce returns of 300 to 500 percent over five to seven years.

Accepted Answer

A) commercial bank 
B) venture capital company 
C) angel 
D) SB-1 filing 
A) commercial bank 
B) venture capital company 
C) angel 
D) SB-1 filing

Question 20

SBAExpress loans typically are between five and ten years,but loan maturities for fixed assets can be up to 25 years and an average SBAExpress loan is $50,000.

Accepted Answer

A) True 
 B)False

Small businesses devastated by floods,earthquakes,fires,and other maladies would seek assistance through which SBA loan program?

Commercial finance companies are willing to take more risk in making loans than commercial banks,but they also charge a higher interest rate.

Vendors and suppliers often are willing to finance a small business owner's purchase of goods for 30 to 60 days,interest free,which is usually easier for small businesses than obtaining a bank loan.

Regulation D Rule 504 (SCOR)offerings has a $1 million ceiling on the amount raised in any 12-month period.

Which of the following is not true regarding the SBA Low Doc Loan Program?

When a bank makes enough SBA-guaranteed loans to become a ________ lender,the SBA promises a faster turnaround time for the loan decision,typically 3 to 10 business days.

To be eligible for the simplified registration process under Regulation S-B,a company must:

The first place an entrepreneur should look for startup capital is:

What other sources of capital would you suggest that Christine explore?

Unlike equity financing,debt financing does not require an entrepreneur to dilute her ownership interest in the company.

Asset-based borrowing enables a small company to borrow money by pledging otherwise idle assets such as accounts receivable and inventory.

Review the various loan programs under the Small Business Administration designed to help finance businesses like Christine's.Which of these programs would most likely help Christine get the capital she needs?

Entrepreneurs are most likely to give up more equity in their businesses in the startup phase than in any other.

Asset-based borrowing permits small businesses:

One of the disadvantages of angels is that they are typically not willing to wait more than three years to cash out their investments.

A company pledging its inventory,accounts receivables,or fixtures as collateral for a loan is using:

Networking is one of the best ways to find angels,who usually prefer to invest in local businesses operating in industries they know something about.

Banks tend to be very conservative in their lending practices and prefer to make loans to established small businesses rather than to high-risk business start-ups.

A/An ________ is a private,for-profit organization that purchases equity positions in young businesses that will potentially produce returns of 300 to 500 percent over five to seven years.

SBAExpress loans typically are between five and ten years,but loan maturities for fixed assets can be up to 25 years and an average SBAExpress loan is $50,000.

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

Small businesses devastated by floods,earthquakes,fires,and other maladies would seek assistance through which SBA loan program?

Commercial finance companies are willing to take more risk in making loans than commercial banks,but they also charge a higher interest rate.

Vendors and suppliers often are willing to finance a small business owner's purchase of goods for 30 to 60 days,interest free,which is usually easier for small businesses than obtaining a bank loan.

Regulation D Rule 504 (SCOR)offerings has a $1 million ceiling on the amount raised in any 12-month period.

Which of the following is not true regarding the SBA Low Doc Loan Program?

When a bank makes enough SBA-guaranteed loans to become a ________ lender,the SBA promises a faster turnaround time for the loan decision,typically 3 to 10 business days.

To be eligible for the simplified registration process under Regulation S-B,a company must:

The first place an entrepreneur should look for startup capital is:

What other sources of capital would you suggest that Christine explore?

Unlike equity financing,debt financing does not require an entrepreneur to dilute her ownership interest in the company.

Asset-based borrowing enables a small company to borrow money by pledging otherwise idle assets such as accounts receivable and inventory.

Review the various loan programs under the Small Business Administration designed to help finance businesses like Christine's.Which of these programs would most likely help Christine get the capital she needs?

Entrepreneurs are most likely to give up more equity in their businesses in the startup phase than in any other.

Asset-based borrowing permits small businesses:

One of the disadvantages of angels is that they are typically not willing to wait more than three years to cash out their investments.

A company pledging its inventory,accounts receivables,or fixtures as collateral for a loan is using:

Networking is one of the best ways to find angels,who usually prefer to invest in local businesses operating in industries they know something about.

Banks tend to be very conservative in their lending practices and prefer to make loans to established small businesses rather than to high-risk business start-ups.

A/An ________ is a private,for-profit organization that purchases equity positions in young businesses that will potentially produce returns of 300 to 500 percent over five to seven years.

SBAExpress loans typically are between five and ten years,but loan maturities for fixed assets can be up to 25 years and an average SBAExpress loan is $50,000.

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