Question 1

Because the advantages of going public outweigh the disadvantages,it is in a corporation's best interest to go public.

Accepted Answer

A) True 
 B)False  False

Question 2

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  True

Question 3

Major trends in the venture capital field today include all of the following except

Accepted Answer

A) less specialized and more homogenous funds 
B) emerging feeder funds 
C) decrease in start-up investment amounts 
D) global reach 
A) less specialized and more homogenous funds 
B) emerging feeder funds 
C) decrease in start-up investment amounts 
D) global reach A

Question 4

An informal risk capitalist is referred to as:

Accepted Answer

A) your neighbor. 
B) a business angel. 
C) a retiree. 
D) someone with extra money to invest but who is not interested becoming an entrepreneur. 
A) your neighbor. 
B) a business angel. 
C) a retiree. 
D) someone with extra money to invest but who is not interested becoming an entrepreneur.

Question 5

Regulation D augments the regulations for reports and statements required for selling stock to private parties,friends,employees,customers,relatives,local professionals.

Accepted Answer

A) True 
 B)False

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 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

Question 8

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 9

Which of the following statements is not true of venture capitalists?

Accepted Answer

A) They want the entrepreneur and the management to run the company. 
B) They expect high return on investments. 
C) They are interested in trying to manage firms themselves. 
D) They take a long time to raise venture capital. 
A) They want the entrepreneur and the management to run the company. 
B) They expect high return on investments. 
C) They are interested in trying to manage firms themselves. 
D) They take a long time to raise venture capital.

Question 10

Informal risk capitalists are often referred to as "business angels."

Accepted Answer

A) True 
 B)False

Question 11

The most common source of debt financing is

Accepted Answer

A) trade credit. 
B) factoring. 
C) commercial banks. 
D) finance companies. 
A) trade credit. 
B) factoring. 
C) commercial banks. 
D) finance companies.

Question 12

What is the potential future of crowdfunding sites to raise capital with respect to entrepreneurs?

Accepted Answer

If the social equity investing sites (cr

Question 13

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 14

What are the major types and uses of debt financing?

Accepted Answer

Many new ventures find that debt financi

Question 15

One of the advantages of public offerings is

Accepted Answer

A) liquidity. 
B) disclosure. 
C) requirements. 
D) cost. 
A) liquidity. 
B) disclosure. 
C) requirements. 
D) cost.

Question 16

A disadvantage of debt financing is

Accepted Answer

A) regular interest payments. 
B) possible cash flow enhancement. 
C) inhibition of growth and development due to equity investments. 
D) relinquishment of ownership. 
A) regular interest payments. 
B) possible cash flow enhancement. 
C) inhibition of growth and development due to equity investments. 
D) relinquishment of ownership.

Question 17

Equity financing is money invested in the venture with legal obligations to repay the principal amount of interest or interest rate on it.

Accepted Answer

A) True 
 B)False

Question 18

Sources of debt financing include trade credit,accounts receivables,factoring,and finance companies.

Accepted Answer

A) True 
 B)False

Question 19

Venture capitalists,surprisingly,require little information before they make an investment.

Accepted Answer

A) True 
 B)False

Question 20

Use of debt to finance a new venture involves a payback of funds plus an interest fee for the use of the money.

Accepted Answer

A) True 
 B)False

Because the advantages of going public outweigh the disadvantages,it is in a corporation's best interest to go public.

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

Major trends in the venture capital field today include all of the following except

An informal risk capitalist is referred to as:

Regulation D augments the regulations for reports and statements required for selling stock to private parties,friends,employees,customers,relatives,local professionals.

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

The entrepreneur should ask the venture capitalist _____ questions.

The main objective of Regulation D is to

Which of the following statements is not true of venture capitalists?

Informal risk capitalists are often referred to as "business angels."

The most common source of debt financing is

What is the potential future of crowdfunding sites to raise capital with respect to entrepreneurs?

Advantages of debt financing include all of the following except:

What are the major types and uses of debt financing?

One of the advantages of public offerings is

A disadvantage of debt financing is

Equity financing is money invested in the venture with legal obligations to repay the principal amount of interest or interest rate on it.

Sources of debt financing include trade credit,accounts receivables,factoring,and finance companies.

Venture capitalists,surprisingly,require little information before they make an investment.

Use of debt to finance a new venture involves a payback of funds plus an interest fee for the use of the money.

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

Because the advantages of going public outweigh the disadvantages,it is in a corporation's best interest to go public.

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

Major trends in the venture capital field today include all of the following except

An informal risk capitalist is referred to as:

Regulation D augments the regulations for reports and statements required for selling stock to private parties,friends,employees,customers,relatives,local professionals.

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

The entrepreneur should ask the venture capitalist _____ questions.

The main objective of Regulation D is to

Which of the following statements is not true of venture capitalists?

Informal risk capitalists are often referred to as "business angels."

The most common source of debt financing is

What is the potential future of crowdfunding sites to raise capital with respect to entrepreneurs?

Advantages of debt financing include all of the following except:

What are the major types and uses of debt financing?

One of the advantages of public offerings is

A disadvantage of debt financing is

Equity financing is money invested in the venture with legal obligations to repay the principal amount of interest or interest rate on it.

Sources of debt financing include trade credit,accounts receivables,factoring,and finance companies.

Venture capitalists,surprisingly,require little information before they make an investment.

Use of debt to finance a new venture involves a payback of funds plus an interest fee for the use of the money.

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