Question 1

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

Accepted Answer

A)  startup 
B)  product development 
C)  product testing 
D)  product shipping 
A)  startup 
B)  product development 
C)  product testing 
D)  product shipping

Question 2

Because of the risk/return tradeoff, small businesses that borrow money repay it with interest at the ________.

Accepted Answer

A)  prime interest rate 
B)  prime interest rate minus a few percentage points 
C)  prime interest rate plus a few percentage points 
D)  lender's cost of capital 
A)  prime interest rate 
B)  prime interest rate minus a few percentage points 
C)  prime interest rate plus a few percentage points 
D)  lender's cost of capital

Question 3

Unlike entrepreneurs of the past, today's entrepreneurs ________.

Accepted Answer

A)  are finding more government interest and funding for business start-ups than in the past decade 
B)  find fewer closed doors as small business start-ups have become less risky 
C)  have to piece their capital together from several sources 
D)  are spending a smaller percentage of their time raising capital for their businesses 
A)  are finding more government interest and funding for business start-ups than in the past decade 
B)  find fewer closed doors as small business start-ups have become less risky 
C)  have to piece their capital together from several sources 
D)  are spending a smaller percentage of their time raising capital for their businesses

Question 4

The Global Entrepreneurship Monitor reports that the average amount of capital that entrepreneurs use to start small businesses is about ________.

Accepted Answer

A)  $25,000 
B)  $50,000 
C)  $15,000 
D)  $100,000 
A)  $25,000 
B)  $50,000 
C)  $15,000 
D)  $100,000

Question 5

Crowd funding is a method of raising capital that taps the power of social networking and allows entrepreneurs to post their elevator pitches and proposed investment terms on specialized Web sites and raise money from ordinary people who invest as little as $100.

Accepted Answer

A) True 
 B)False

Question 6

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?

Accepted Answer

During the last decade, the financial in

Question 7

SBA Express loans typically are between five and ten years, but loan maturities for fixed assets can be up to 25 years.

Accepted Answer

A) True 
 B)False

Question 8

________ loans are typically unsecured.

Accepted Answer

A)  Equity 
B)  Capital 
C)  Asset-based 
D)  Term 
A)  Equity 
B)  Capital 
C)  Asset-based 
D)  Term

Question 9

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

Question 10

Two factors that make a deal attractive to venture capitalists include high returns and a convenient and profitable exit strategy.

Accepted Answer

A) True 
 B)False

Question 11

The Community Advantage Loan Program provides loans to communities that have suffered a natural disaster.

Accepted Answer

A) True 
 B)False

Question 12

Bootstrapping is a process in which entrepreneurs tap their personal savings and use creative, low-cost start-up methods to launch their businesses.

Accepted Answer

A) True 
 B)False

Question 13

After an entrepreneur invests his own money for startup, she/he will typically seek additional financing from friends and family next.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

∙ The owner's personal savings are the m

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

The CAPLine Program makes short-term capital loans to growing companies needed to finance seasonal buildups in inventory or accounts receivable.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Bootstrap financing describes using internal, and often creative, methods of financing a company's need for capital.

Accepted Answer

A) True 
 B)False

Question 19

Bootstrapping is a method of raising capital that taps the power of social networking and allows entrepreneurs to post their elevator pitches and proposed investment terms on specialized Web sites and raise money from ordinary people who invest as little as $100.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not a characteristic of a typical angel investor?

Accepted Answer

A)  Investing money locally. 
B)  Purchasing majority ownership in the company. 
C)  Investing in the startup phase of the company. 
D)  Willing to wait seven years or more to cash out an investment. 
A)  Investing money locally. 
B)  Purchasing majority ownership in the company. 
C)  Investing in the startup phase of the company. 
D)  Willing to wait seven years or more to cash out an investment.

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

Because of the risk/return tradeoff, small businesses that borrow money repay it with interest at the ________.

Unlike entrepreneurs of the past, today's entrepreneurs ________.

The Global Entrepreneurship Monitor reports that the average amount of capital that entrepreneurs use to start small businesses is about ________.

Crowd funding is a method of raising capital that taps the power of social networking and allows entrepreneurs to post their elevator pitches and proposed investment terms on specialized Web sites and raise money from ordinary people who invest as little as $100.

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?

SBA Express loans typically are between five and ten years, but loan maturities for fixed assets can be up to 25 years.

________ loans are typically unsecured.

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.

Two factors that make a deal attractive to venture capitalists include high returns and a convenient and profitable exit strategy.

The Community Advantage Loan Program provides loans to communities that have suffered a natural disaster.

Bootstrapping is a process in which entrepreneurs tap their personal savings and use creative, low-cost start-up methods to launch their businesses.

After an entrepreneur invests his own money for startup, she/he will typically seek additional financing from friends and family next.

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

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

The CAPLine Program makes short-term capital loans to growing companies needed to finance seasonal buildups in inventory or accounts receivable.

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

Bootstrap financing describes using internal, and often creative, methods of financing a company's need for capital.

Bootstrapping is a method of raising capital that taps the power of social networking and allows entrepreneurs to post their elevator pitches and proposed investment terms on specialized Web sites and raise money from ordinary people who invest as little as $100.

Which of the following is not a characteristic of a typical angel investor?

The Foundations of Entrepreneurship

Ethics and Social Responsibility: Doing the Right Thing

Inside the Entrepreneurial Mind: From Ideas to Reality

Conducting a Feasibility Analysis and Designing a Business Model

Crafting a Business Plan and Building a Solid Strategic Plan

Forms of Business Ownership and Buying an Existing Business

Franchising and the Entrepreneur

Building a Powerful Bootstrap Marketing Plan

E-Commerce and the Entrepreneur

Pricing and Credit 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

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

Because of the risk/return tradeoff, small businesses that borrow money repay it with interest at the ________.

Unlike entrepreneurs of the past, today's entrepreneurs ________.

The Global Entrepreneurship Monitor reports that the average amount of capital that entrepreneurs use to start small businesses is about ________.

Crowd funding is a method of raising capital that taps the power of social networking and allows entrepreneurs to post their elevator pitches and proposed investment terms on specialized Web sites and raise money from ordinary people who invest as little as $100.

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?

SBA Express loans typically are between five and ten years, but loan maturities for fixed assets can be up to 25 years.

________ loans are typically unsecured.

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.

Two factors that make a deal attractive to venture capitalists include high returns and a convenient and profitable exit strategy.

The Community Advantage Loan Program provides loans to communities that have suffered a natural disaster.

Bootstrapping is a process in which entrepreneurs tap their personal savings and use creative, low-cost start-up methods to launch their businesses.

After an entrepreneur invests his own money for startup, she/he will typically seek additional financing from friends and family next.

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

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

The CAPLine Program makes short-term capital loans to growing companies needed to finance seasonal buildups in inventory or accounts receivable.

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

Bootstrap financing describes using internal, and often creative, methods of financing a company's need for capital.

Bootstrapping is a method of raising capital that taps the power of social networking and allows entrepreneurs to post their elevator pitches and proposed investment terms on specialized Web sites and raise money from ordinary people who invest as little as $100.

Which of the following is not a characteristic of a typical angel investor?

The Foundations of Entrepreneurship

Ethics and Social Responsibility: Doing the Right Thing

Inside the Entrepreneurial Mind: From Ideas to Reality

Conducting a Feasibility Analysis and Designing a Business Model

Crafting a Business Plan and Building a Solid Strategic Plan

Forms of Business Ownership and Buying an Existing Business

Franchising and the Entrepreneur

Building a Powerful Bootstrap Marketing Plan

E-Commerce and the Entrepreneur

Pricing and Credit Strategies

Creating a Successful Financial Plan

Managing Cash Flow

Choosing the Right Location and Layout

Global Opportunities

Building a Team and Management Succession

Filters