Question 1

Equity capital is often raised through:

Accepted Answer

A)  public stock offerings. 
B)  option sales. 
C)  donations. 
D)  preferred issues. 
A)  public stock offerings. 
B)  option sales. 
C)  donations. 
D)  preferred issues.

Question 2

Venture proposals are often rejected due to significant deficiencies in

Accepted Answer

A)  the size of the proposal. 
B)  financial projections. 
C)  available funds. 
D)  both a and b 
A)  the size of the proposal. 
B)  financial projections. 
C)  available funds. 
D)  both a and b

Question 3

SEC stands for the

Accepted Answer

A)  Stock Exchange Corporation. 
B)  Securities and Exchange Commission. 
C)  Standard Equity Commission. 
D)  Source of Equity Company. 
A)  Stock Exchange Corporation. 
B)  Securities and Exchange Commission. 
C)  Standard Equity Commission. 
D)  Source of Equity Company.

Question 4

SBIC stands for the

Accepted Answer

A)  small business in capital. 
B)  securities, bonds, investment, capital. 
C)  small-business investment companies 
D)  sources of business investment companies 
A)  small business in capital. 
B)  securities, bonds, investment, capital. 
C)  small-business investment companies 
D)  sources of business investment companies

Question 5

Which of the following does not represent a category of angel investors?

Accepted Answer

A)  micromanagement angels 
B)  entrepreneurial angels 
C)  amateur angels 
D)  corporate angels 
A)  micromanagement angels 
B)  entrepreneurial angels 
C)  amateur angels 
D)  corporate angels

Question 6

Which is one of the most important questions for entrepreneurs to ask regarding venture capitalists?

Accepted Answer

A)  What is it like to work with their firm? 
B)  Are they good communicators? 
C)  Are they wealthy? 
D)  Are they good at financial computation? 
A)  What is it like to work with their firm? 
B)  Are they good communicators? 
C)  Are they wealthy? 
D)  Are they good at financial computation?

Question 7

The venture capital pool is rapidly declining due to overfunding.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a type of equity financing?

Accepted Answer

A)  convertible debentures 
B)  common stock 
C)  loan with warrants 
D)  loan without warrants 
A)  convertible debentures 
B)  common stock 
C)  loan with warrants 
D)  loan without warrants

Question 9

Short-term debt is

Accepted Answer

A)  paid back in six months. 
B)  paid back in one year. 
C)  paid back after sales. 
D)  paid back over an indefinite period of time. 
A)  paid back in six months. 
B)  paid back in one year. 
C)  paid back after sales. 
D)  paid back over an indefinite period of time.

Question 10

Most venture capital funds later stages of venture development, not the start-up (or seed) stage.

Accepted Answer

A) True 
 B)False

Question 11

Frugality is deemed a bootstrapping technique.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a type of debt financing?

Accepted Answer

A)  private placement 
B)  trade credits 
C)  finance companies 
D)  accounts receivables 
A)  private placement 
B)  trade credits 
C)  finance companies 
D)  accounts receivables

Question 13

One of the most frequently used criterion in evaluating new ventures, is the ability of the entrepreneur to sustain intense effort.

Accepted Answer

A) True 
 B)False

Question 14

There is only a small number of informal risk capitalists in the market today.

Accepted Answer

A) True 
 B)False

Question 15

A potential danger of social lending is the implication that social loans may be viewed as gifts and taxed accordingly.

Accepted Answer

A) True 
 B)False

Question 16

__________ is(are) one of the disadvantages of going public.

Accepted Answer

A)  Proxy statements 
B)  Form 8-K 
C)  Shareholder pressure 
D)  Liquidity 
A)  Proxy statements 
B)  Form 8-K 
C)  Shareholder pressure 
D)  Liquidity

Question 17

Entrepreneurs are rarely able to set up a business without investment funds or bank loans.

Accepted Answer

A) True 
 B)False

Question 18

Advantages of debt financing include all of the following except:

Accepted Answer

A)  low interest rates that justify the opportunity cost. 
B)  regular interest payments. 
C)  potential greater return on equity. 
D)  no relinquishment of ownership. 
A)  low interest rates that justify the opportunity cost. 
B)  regular interest payments. 
C)  potential greater return on equity. 
D)  no relinquishment of ownership.

Question 19

Regulation D defines separate exemptions that are based on the amount of money being raised. Which is not a rule that accompanies these exemptions?

Accepted Answer

A)  rule 503 
B)  rule 504 
C)  rule 505 
D)  rule 506 
A)  rule 503 
B)  rule 504 
C)  rule 505 
D)  rule 506

Question 20

When starting a business, which of the following sources of financing are most likely to be used?

Accepted Answer

A)  trade credit 
B)  factors 
C)  leasing companies 
D)  insurance companies 
A)  trade credit 
B)  factors 
C)  leasing companies 
D)  insurance companies

Equity capital is often raised through:

Venture proposals are often rejected due to significant deficiencies in

SEC stands for the

SBIC stands for the

Which of the following does not represent a category of angel investors?

Which is one of the most important questions for entrepreneurs to ask regarding venture capitalists?

The venture capital pool is rapidly declining due to overfunding.

Which of the following is a type of equity financing?

Short-term debt is

Most venture capital funds later stages of venture development, not the start-up (or seed) stage.

Frugality is deemed a bootstrapping technique.

Which of the following is not a type of debt financing?

One of the most frequently used criterion in evaluating new ventures, is the ability of the entrepreneur to sustain intense effort.

There is only a small number of informal risk capitalists in the market today.

A potential danger of social lending is the implication that social loans may be viewed as gifts and taxed accordingly.

__________ is(are) one of the disadvantages of going public.

Entrepreneurs are rarely able to set up a business without investment funds or bank loans.

Advantages of debt financing include all of the following except:

Regulation D defines separate exemptions that are based on the amount of money being raised. Which is not a rule that accompanies these exemptions?

When starting a business, which of the following sources of financing are most likely to be used?

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

Equity capital is often raised through:

Venture proposals are often rejected due to significant deficiencies in

SEC stands for the

SBIC stands for the

Which of the following does not represent a category of angel investors?

Which is one of the most important questions for entrepreneurs to ask regarding venture capitalists?

The venture capital pool is rapidly declining due to overfunding.

Which of the following is a type of equity financing?

Short-term debt is

Most venture capital funds later stages of venture development, not the start-up (or seed) stage.

Frugality is deemed a bootstrapping technique.

Which of the following is not a type of debt financing?

One of the most frequently used criterion in evaluating new ventures, is the ability of the entrepreneur to sustain intense effort.

There is only a small number of informal risk capitalists in the market today.

A potential danger of social lending is the implication that social loans may be viewed as gifts and taxed accordingly.

__________ is(are) one of the disadvantages of going public.

Entrepreneurs are rarely able to set up a business without investment funds or bank loans.

Advantages of debt financing include all of the following except:

Regulation D defines separate exemptions that are based on the amount of money being raised. Which is not a rule that accompanies these exemptions?

When starting a business, which of the following sources of financing are most likely to be used?

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