Question 1

The ideal candidate for a bank loan is a firm with weak cash flow, high leverage, low to moderate growth and unproven management.

Accepted Answer

A) True 
 B)False

Question 2

For startup firms, some products are under development for years before they generate earnings. The upfront costs often exceed a firm's ability to fund these activities on its own. Which of the following reasons that motivate firms to seek funding or financing is illustrated in this example?

Accepted Answer

A)  Cash flow challenges 
B)  Marketing costs 
C)  Capital investments 
D)  Personnel costs 
E)  Lengthy product development cycles 
A)  Cash flow challenges 
B)  Marketing costs 
C)  Capital investments 
D)  Personnel costs 
E)  Lengthy product development cycles

Question 3

Which "phase" of the SBIR Program is a six-month feasibility study in which the recipient must demonstrate the technical feasibility of the proposed innovation?

Accepted Answer

A)  Phase I 
B)  Phase II 
C)  Phase III 
D)  Phase V 
E)  Phase X 
A)  Phase I 
B)  Phase II 
C)  Phase III 
D)  Phase V 
E)  Phase X

Question 4

Kickstarter, Indiegogo and RocketHub are examples of equity-based crowdfunding sites.

Accepted Answer

A) True 
 B)False

Question 5

The percentage of the profits the venture capitalist gets is called the "carry."

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is incorrect about grant programs?

Accepted Answer

A)  Granting agencies are very visible and well-known, so it's normally not hard to find one. 
B)  The federal government has grant programs beyond the SBIR and STTR programs. 
C)  It's important to avoid grant-related scams. 
D)  There is a limited number of organizations that offer new businesses grants. 
E)  There are private foundations that grant money to both existing and startup firms. 
A)  Granting agencies are very visible and well-known, so it's normally not hard to find one. 
B)  The federal government has grant programs beyond the SBIR and STTR programs. 
C)  It's important to avoid grant-related scams. 
D)  There is a limited number of organizations that offer new businesses grants. 
E)  There are private foundations that grant money to both existing and startup firms.

Question 7

The average SBA 7(A) loan amount in 2015 was $371,628.

Accepted Answer

A) True 
 B)False

Question 8

Kickstarter and Indiegogo are examples of ________ crowdfunding sites.

Accepted Answer

A)  equity-based 
B)  vendor-based 
C)  peer-based 
D)  debt-based 
E)  reward-based 
A)  equity-based 
B)  vendor-based 
C)  peer-based 
D)  debt-based 
E)  reward-based

Question 9

The main difference between the SBIR and the STTR programs is that the STTR program requires the participation of ________.

Accepted Answer

A)  an attorney 
B)  a venture capitalist 
C)  researchers working at universities or other research institutions 
D)  a certified public accountant 
E)  a government agency in conducting the research 
A)  an attorney 
B)  a venture capitalist 
C)  researchers working at universities or other research institutions 
D)  a certified public accountant 
E)  a government agency in conducting the research

Question 10

A(n) ________ is a written agreement in which the owner of a piece of property allows an individual or business to use the property for a specified period of time in exchange for payments.

Accepted Answer

A)  assurance 
B)  loan 
C)  guarantee 
D)  warranty 
E)  lease 
A)  assurance 
B)  loan 
C)  guarantee 
D)  warranty 
E)  lease

Question 11

Which of the following sets of characteristics places a startup in the strongest position to apply for equity funding?

Accepted Answer

A)  Weak cash flow, high leverage, low-to-moderate growth, unproven management 
B)  Strong cash flow, low leverage, audited financials, good management, healthy balance sheet 
C)  Unique business idea, strong cash flow, low-to-moderate growth, broad market 
D)  Strong cash flow, high leverage, low-to-moderate growth, unproven management 
E)  Unique business idea, high growth, niche market, proven management 
A)  Weak cash flow, high leverage, low-to-moderate growth, unproven management 
B)  Strong cash flow, low leverage, audited financials, good management, healthy balance sheet 
C)  Unique business idea, strong cash flow, low-to-moderate growth, broad market 
D)  Strong cash flow, high leverage, low-to-moderate growth, unproven management 
E)  Unique business idea, high growth, niche market, proven management

Question 12

What is a business angel? Describe the prototypical business angel. How much money do business angels typically invest in a single company?

Accepted Answer

Business angels are individuals who inve

Question 13

________ is a financial transaction whereby a business sells its accounts receivable to a third party at a discount in exchange for cash.

Accepted Answer

A)  Factoring 
B)  Vendor credit 
C)  Peer-to-peer lending 
D)  Crowdfunding 
E)  Leasing 
A)  Factoring 
B)  Vendor credit 
C)  Peer-to-peer lending 
D)  Crowdfunding 
E)  Leasing

Question 14

In startup firms, inventory must be purchased, employees must be trained and paid, and advertising must be paid for before cash is generated from sales. Which of the following reasons that motivate firms to seek funding or financing is illustrated in this example?

Accepted Answer

A)  Cash flow challenges 
B)  Marketing costs 
C)  Personnel costs 
D)  Capital investments 
E)  Lengthy product development cycles 
A)  Cash flow challenges 
B)  Marketing costs 
C)  Personnel costs 
D)  Capital investments 
E)  Lengthy product development cycles

Question 15

A liquidity event accomplishes which of the following purposes?

Accepted Answer

A)  Provides a business sufficient funding to operate for up to a year without raising additional funding 
B)  Provides the founders of a firm a salary 
C)  Converts some or all of a company's stock to cash 
D)  Allows the founders of a firm to sell stock to the public 
E)  Allows a business to liquidate in an ethical and cost-effective manner 
A)  Provides a business sufficient funding to operate for up to a year without raising additional funding 
B)  Provides the founders of a firm a salary 
C)  Converts some or all of a company's stock to cash 
D)  Allows the founders of a firm to sell stock to the public 
E)  Allows a business to liquidate in an ethical and cost-effective manner

The ideal candidate for a bank loan is a firm with weak cash flow, high leverage, low to moderate growth and unproven management.

For startup firms, some products are under development for years before they generate earnings. The upfront costs often exceed a firm's ability to fund these activities on its own. Which of the following reasons that motivate firms to seek funding or financing is illustrated in this example?

Which "phase" of the SBIR Program is a six-month feasibility study in which the recipient must demonstrate the technical feasibility of the proposed innovation?

Kickstarter, Indiegogo and RocketHub are examples of equity-based crowdfunding sites.

The percentage of the profits the venture capitalist gets is called the "carry."

Which of the following statements is incorrect about grant programs?

The average SBA 7(A) loan amount in 2015 was $371,628.

Kickstarter and Indiegogo are examples of ________ crowdfunding sites.

The main difference between the SBIR and the STTR programs is that the STTR program requires the participation of ________.

A(n) ________ is a written agreement in which the owner of a piece of property allows an individual or business to use the property for a specified period of time in exchange for payments.

Which of the following sets of characteristics places a startup in the strongest position to apply for equity funding?

What is a business angel? Describe the prototypical business angel. How much money do business angels typically invest in a single company?

________ is a financial transaction whereby a business sells its accounts receivable to a third party at a discount in exchange for cash.

In startup firms, inventory must be purchased, employees must be trained and paid, and advertising must be paid for before cash is generated from sales. Which of the following reasons that motivate firms to seek funding or financing is illustrated in this example?

A liquidity event accomplishes which of the following purposes?

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters

Exam 10: Getting Financing or Funding

The ideal candidate for a bank loan is a firm with weak cash flow, high leverage, low to moderate growth and unproven management.

For startup firms, some products are under development for years before they generate earnings. The upfront costs often exceed a firm's ability to fund these activities on its own. Which of the following reasons that motivate firms to seek funding or financing is illustrated in this example?

Which "phase" of the SBIR Program is a six-month feasibility study in which the recipient must demonstrate the technical feasibility of the proposed innovation?

Kickstarter, Indiegogo and RocketHub are examples of equity-based crowdfunding sites.

The percentage of the profits the venture capitalist gets is called the "carry."

Which of the following statements is incorrect about grant programs?

The average SBA 7(A) loan amount in 2015 was $371,628.

Kickstarter and Indiegogo are examples of ________ crowdfunding sites.

The main difference between the SBIR and the STTR programs is that the STTR program requires the participation of ________.

A(n) ________ is a written agreement in which the owner of a piece of property allows an individual or business to use the property for a specified period of time in exchange for payments.

Which of the following sets of characteristics places a startup in the strongest position to apply for equity funding?

What is a business angel? Describe the prototypical business angel. How much money do business angels typically invest in a single company?

________ is a financial transaction whereby a business sells its accounts receivable to a third party at a discount in exchange for cash.

In startup firms, inventory must be purchased, employees must be trained and paid, and advertising must be paid for before cash is generated from sales. Which of the following reasons that motivate firms to seek funding or financing is illustrated in this example?

A liquidity event accomplishes which of the following purposes?

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Developing an Effective Business Model

Industry and Competitor Analysis

Writing a Business Plan

Preparing the Proper Ethical and Legal Foundation

Assessing a New Ventures Financial Strength and Viability

Building a New-Venture Team

Unique Marketing Issues

The Importance of Intellectual Property

Preparing for and Evaluating the Challenges of Growth

Strategies for Firm Growth

Franchising

Filters