Question 1

Which of the following is not a question commonly asked by banks of entrepreneurs?

Accepted Answer

A)  What do you plan to do with the money? 
B)  How much do you need? 
C)  What interest rate did you have in mind? 
D)  How will you repay the loan? 
A)  What do you plan to do with the money? 
B)  How much do you need? 
C)  What interest rate did you have in mind? 
D)  How will you repay the loan? C

Question 2

The entrepreneur should ask the venture capitalist _____ questions.

Accepted Answer

A)  at most ten 
B)  exactly twenty 
C)  an unlimited number of 
D)  no 
A)  at most ten 
B)  exactly twenty 
C)  an unlimited number of 
D)  no C

Question 3

The average size of a social loan is around $7,000.

Accepted Answer

A) True 
 B)False  True

Question 4

When accounts receivable are bought from a company for capital funding it is called

Accepted Answer

A)  trade credit. 
B)  financing. 
C)  leasing. 
D)  factoring. 
A)  trade credit. 
B)  financing. 
C)  leasing. 
D)  factoring.

Question 5

Venture capitalists need only basic summary information before they make funding decisions.

Accepted Answer

A) True 
 B)False

Question 6

Venture capitalists are experienced professionals who provide a full range of service for new ventures including

Accepted Answer

A)  supplying labor for start-up. 
B)  market research and strategy for pricing. 
C)  management consulting. 
D)  R & D knowledge. 
A)  supplying labor for start-up. 
B)  market research and strategy for pricing. 
C)  management consulting. 
D)  R & D knowledge.

Question 7

Which of the following is (are) sources of capital for entrepreneurs?

Accepted Answer

A)  equity 
B)  debit 
C)  auto leasing 
D)  credit cards 
A)  equity 
B)  debit 
C)  auto leasing 
D)  credit cards

Question 8

Which of the following is a True statement about raising capital?

Accepted Answer

A)  All capital is raised through formal sources. 
B)  All capital is raised through debt sources. 
C)  Capital is easy to get. 
D)  It often takes a great deal of time to raise capital. 
A)  All capital is raised through formal sources. 
B)  All capital is raised through debt sources. 
C)  Capital is easy to get. 
D)  It often takes a great deal of time to raise capital.

Question 9

Should entrepreneurs accept proposals from the first venture capitalist that offers?

Accepted Answer

Entrepreneurs must evaluate their capita

Question 10

The Regulation D exemptions include all of the following except:

Accepted Answer

A)  placements of up to $5 million. 
B)  placements of less than $500,000. 
C)  placements in excess of $5 million. 
D)  placements in excess of $l0 million. 
A)  placements of up to $5 million. 
B)  placements of less than $500,000. 
C)  placements in excess of $5 million. 
D)  placements in excess of $l0 million.

Question 11

Long-term debt is used for

Accepted Answer

A)  start-up capital. 
B)  purchase of property or equipment. 
C)  payment of payroll. 
D)  both a and b 
A)  start-up capital. 
B)  purchase of property or equipment. 
C)  payment of payroll. 
D)  both a and b

Question 12

Equity capital is

Accepted Answer

A)  paid back within one year. 
B)  paid back after five years. 
C)  not a loan but a form of stock. 
D)  loans from family. 
A)  paid back within one year. 
B)  paid back after five years. 
C)  not a loan but a form of stock. 
D)  loans from family.

Question 13

The main objective of Regulation D is to

Accepted Answer

A)  increase investment in private placement. 
B)  regulate new small-business investment. 
C)  make it easier and less expensive for small ventures to sell stock. 
D)  reduce debt financing by small enterprises. 
A)  increase investment in private placement. 
B)  regulate new small-business investment. 
C)  make it easier and less expensive for small ventures to sell stock. 
D)  reduce debt financing by small enterprises.

Question 14

Of the following, which is not typically identified as a bootstrapping technique?

Accepted Answer

A)  sharing office space 
B)  hiring seasoned veterans 
C)  encouraging customers to pay early 
D)  trading equity for services 
A)  sharing office space 
B)  hiring seasoned veterans 
C)  encouraging customers to pay early 
D)  trading equity for services

Question 15

How many people in America have net worth in excess of $1 million?

Accepted Answer

A)  less than 100,000 
B)  about 200,000 
C)  about 500,000 
D)  more than l,000,000 
A)  less than 100,000 
B)  about 200,000 
C)  about 500,000 
D)  more than l,000,000

Question 16

Venture capitalists are quick to invest.

Accepted Answer

A) True 
 B)False

Question 17

Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures.

Accepted Answer

A) True 
 B)False

Question 18

History and nature of the company, capital structure, and description of any material contracts are just a few examples of the specific detailed information that must be presented about a firm that is going public.

Accepted Answer

A) True 
 B)False

Question 19

Informal risk capitalists are those who have already made their money and now seek to help new ventures.

Accepted Answer

A) True 
 B)False

Question 20

Venture capitalists are a valuable source of equity funding for new ventures.

Accepted Answer

A) True 
 B)False

Which of the following is not a question commonly asked by banks of entrepreneurs?

The entrepreneur should ask the venture capitalist _____ questions.

The average size of a social loan is around $7,000.

When accounts receivable are bought from a company for capital funding it is called

Venture capitalists need only basic summary information before they make funding decisions.

Venture capitalists are experienced professionals who provide a full range of service for new ventures including

Which of the following is (are) sources of capital for entrepreneurs?

Which of the following is a True statement about raising capital?

Should entrepreneurs accept proposals from the first venture capitalist that offers?

The Regulation D exemptions include all of the following except:

Long-term debt is used for

Equity capital is

The main objective of Regulation D is to

Of the following, which is not typically identified as a bootstrapping technique?

How many people in America have net worth in excess of $1 million?

Venture capitalists are quick to invest.

Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures.

History and nature of the company, capital structure, and description of any material contracts are just a few examples of the specific detailed information that must be presented about a firm that is going public.

Informal risk capitalists are those who have already made their money and now seek to help new ventures.

Venture capitalists are a valuable source of equity funding for new ventures.

Entrepreneurship: Evolutionary Development-Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: The Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Pathways to Entrepreneurial Ventures

Legal Challenges of Entrepreneurial Ventures

Marketing Challenges for Entrepreneurial Ventures

Financial Preparation for Entrepreneurial Ventures

Developing an Effective Business Plan

Strategic Entrepreneurial Growth

Valuation of Entrepreneurial Ventures

Harvesting the Entrepreneurial Venture

Filters

Exam 8: Sources of Capital for Entrepreneurs

Which of the following is not a question commonly asked by banks of entrepreneurs?

The entrepreneur should ask the venture capitalist _____ questions.

The average size of a social loan is around $7,000.

When accounts receivable are bought from a company for capital funding it is called

Venture capitalists need only basic summary information before they make funding decisions.

Venture capitalists are experienced professionals who provide a full range of service for new ventures including

Which of the following is (are) sources of capital for entrepreneurs?

Which of the following is a True statement about raising capital?

Should entrepreneurs accept proposals from the first venture capitalist that offers?

The Regulation D exemptions include all of the following except:

Long-term debt is used for

Equity capital is

The main objective of Regulation D is to

Of the following, which is not typically identified as a bootstrapping technique?

How many people in America have net worth in excess of $1 million?

Venture capitalists are quick to invest.

Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures.

History and nature of the company, capital structure, and description of any material contracts are just a few examples of the specific detailed information that must be presented about a firm that is going public.

Informal risk capitalists are those who have already made their money and now seek to help new ventures.

Venture capitalists are a valuable source of equity funding for new ventures.

Entrepreneurship: Evolutionary Development-Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: The Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Pathways to Entrepreneurial Ventures

Legal Challenges of Entrepreneurial Ventures

Marketing Challenges for Entrepreneurial Ventures

Financial Preparation for Entrepreneurial Ventures

Developing an Effective Business Plan

Strategic Entrepreneurial Growth

Valuation of Entrepreneurial Ventures

Harvesting the Entrepreneurial Venture

Filters