Question 1

The US Small Business Administration (SBA) can guarantee as much as 85 percent repayment on business loans of up to $150,000 and 75 percent repayment on loans of more than $150,000.

Accepted Answer

A) True 
 B)False

Question 2

A short-term loan is one that is scheduled to be repaid within a period of one to ten years.

Accepted Answer

A) True 
 B)False

Question 3

What kinds of loan services do banks provide for new ventures? Describe four of them.

Accepted Answer

The answer of What kinds of loan services do banks...

Question 4

Warehouse-receipt loans are typically used for ______________ that are ______________, allowing the business to buy back portions of the loan as they sell the merchandise.

Accepted Answer

A)  Non-perishable items; readily marketable 
B)  Non-perishable items; not readily marketable 
C)  Perishable items; readily marketable 
D)  Perishable items; not readily marketable

Question 5

A venture capitalist will generally see from 50 to 100 proposals a month. Out of that number, 1 may be funded.

Accepted Answer

A) True 
 B)False

Question 6

______________ are self-liquidating loans, commonly used for both seasonal financing and building up inventories.

Accepted Answer

A)  Straight commercial loans 
B)  Term loans 
C)  Trade loans 
D)  Accounts-receivable loans

Question 7

Which of the following is an informal agreement or understanding between a borrower and a bank that does legally commit the bank to a maximum amount of credit that the bank will provide to the borrower?

Accepted Answer

A)  Line of credit 
B)  Revolving credit agreement 
C)  Commercial credit agreement 
D)  Floating Credit

Question 8

The U.S. Small Business Administration (SBA) was established by Congress for the purpose of:

Accepted Answer

A)  Regulating and controlling the nation's small business enterprises 
B)  Advising and assisting the nation's small businesses 
C)  Providing funding and financial services to the nation's small business 
D)  None of the above

Question 9

Briefly discuss the positive and negative aspects of crowdfunding and how it can assist a small venture seeking startup capital.

Accepted Answer

The answer of Briefly discuss the positive and negative aspects...

Question 10

______________ differ from other financial sources in that they buy accounts receivable, meaning that they purchase them without recourse in the case that a person who owes an ac?count receivable does not pay.

Accepted Answer

A)  Angel investors 
B)  Collection agencies 
C)  Factors 
D)  Finance companies

Question 11

___________ seek(s) funding for a new venture by raising monetary contributions from a large number of people in the general public via the internet.

Accepted Answer

A)  Venture capital funds 
B)  Innovation clubs 
C)  Crowdfunding 
D)  Net financing

Question 12

There are only two basic sources of venture financing: Debt and Ownership Equity.

Accepted Answer

A) True 
 B)False

Question 13

Even with a well-prepared business plan, it takes an average of __________ from initial contact to raise venture capital.

Accepted Answer

A)  3 to 6 weeks 
B)  6 to 8 weeks 
C)  12 to 14 weeks 
D)  1-2 years

Question 14

Explain how new ventures use the following capital sources: internal funds, trade credit, and equity sources

Accepted Answer

The answer of Explain how new ventures use the following...

Question 15

Under a line of credit, a bank is legally obliged to provide the capital stated in the agreement.

Accepted Answer

A) True 
 B)False

Exam 7: Startup Capital: The Injection

The US Small Business Administration (SBA) can guarantee as much as 85 percent repayment on business loans of up to $150,000 and 75 percent repayment on loans of more than $150,000.

A short-term loan is one that is scheduled to be repaid within a period of one to ten years.

What kinds of loan services do banks provide for new ventures? Describe four of them.

Warehouse-receipt loans are typically used for that are , allowing the business to buy back portions of the loan as they sell the merchandise.

A venture capitalist will generally see from 50 to 100 proposals a month. Out of that number, 1 may be funded.

______________ are self-liquidating loans, commonly used for both seasonal financing and building up inventories.

Which of the following is an informal agreement or understanding between a borrower and a bank that does legally commit the bank to a maximum amount of credit that the bank will provide to the borrower?

The U.S. Small Business Administration (SBA) was established by Congress for the purpose of:

Briefly discuss the positive and negative aspects of crowdfunding and how it can assist a small venture seeking startup capital.

______________ differ from other financial sources in that they buy accounts receivable, meaning that they purchase them without recourse in the case that a person who owes an ac?count receivable does not pay.

___________ seek(s) funding for a new venture by raising monetary contributions from a large number of people in the general public via the internet.

There are only two basic sources of venture financing: Debt and Ownership Equity.

Even with a well-prepared business plan, it takes an average of __________ from initial contact to raise venture capital.

Explain how new ventures use the following capital sources: internal funds, trade credit, and equity sources

Under a line of credit, a bank is legally obliged to provide the capital stated in the agreement.