Exam 12: A Firms Sources of Financing

Many venture capitalists:

Cameron has applied for a loan to expand his young business.When bankers look for evidence of whether he will be able to repay a loan,they usually base their assessment on

Lines of credit are legal obligations to provide capital.

Match the term with its definition. a.Asset-based loan b.Basis point c.Chattel mortgage d.Equipment loan e.LIBOR (London InterBank Offered Rate) f.Line of credit g.Prime rate h.Purchase-order financing i.Term loan -An installment loan from a seller of machinery used by a business

Sondra is a business angel who is looking for a start-up company in which to invest.Which company would she most likely invest in based on current research?

Small business owners sometimes accept higher levels of debt because doing so permits them to retain all of the stock and full ownership.

Small Business Administration loans include guaranty loans and loans directly from the SBA.

Fans set up a crowdfunding account to produce new,not-for-profit episodes of Star Trek.This type of crowdfunding uses the ___________ approach.

Discuss suggestions for an entrepreneur who is considering asking family or friends for financing.

Anna's new business looks like it can grow quickly and become profitable in its first year.Anna will likely find _____ possible sources of financing than those with less potential for growth and profits.

Carla is a loan analyst at the bank.When Cameron applied for a loan,Carla looked at his balance sheet for ________ assets to evaluate a possible loan for his company's financing.