Question 1

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 2

The three reasons startups need funding are:

Accepted Answer

A)  cash flow challenges, capital investments, and lengthy product development cycles 
B)  business research, cash flow challenges, and costs associated with building a brand 
C)  bonuses for members of the new venture team, attorney fees, and lengthy product development cycles 
D)  attorney fees, capital investments, and marketing research 
E)  bonuses for members of the new venture team, marketing research, and personnel costs 
A)  cash flow challenges, capital investments, and lengthy product development cycles 
B)  business research, cash flow challenges, and costs associated with building a brand 
C)  bonuses for members of the new venture team, attorney fees, and lengthy product development cycles 
D)  attorney fees, capital investments, and marketing research 
E)  bonuses for members of the new venture team, marketing research, and personnel costs

Question 3

In 2010, venture capital firms funded ________ deals .

Accepted Answer

A)  800 
B)  3,276 
C)  1,265 
D)  6,211 
E)  7,255 
A)  800 
B)  3,276 
C)  1,265 
D)  6,211 
E)  7,255

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Venture capitalists are individuals who invest their personal capital directly in startups.

Accepted Answer

A) True 
 B)False

Question 6

In regard to the stages (or rounds) of venture capital funding, the stage of funding that occurs when an investment is made very early in a venture's life to fund the development of a prototype and feasibility analysis is referred to as:

Accepted Answer

A)  seed funding 
B)  second-stage funding 
C)  first-stage funding 
D)  mezzanine financing 
E)  startup funding 
A)  seed funding 
B)  second-stage funding 
C)  first-stage funding 
D)  mezzanine financing 
E)  startup funding

Question 7

What is an elevator speech? How did it get its name?

Accepted Answer

An elevator speech is a brief, carefully

Question 8

Historically, commercial banks have been viewed as an excellent source of financing for startup firms.

Accepted Answer

A) True 
 B)False

Question 9

A lease 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) True 
 B)False

Question 10

What is meant by the term "bootstrapping"? Provide several examples of the ways that entrepreneurs bootstrap to raise money or cut costs?

Accepted Answer

Bootstrapping is the use of creativity,

Question 11

The most notable SBA program available to small businesses is the:

Accepted Answer

A)  SBA 1060 Guaranty 
B)  Code 604 Guaranty Program 
C)  7(
A)  Guaranty Program 
D)  SBA 101 Program 
E)  Small Business 401 Program 
A)  SBA 1060 Guaranty 
B)  Code 604 Guaranty Program 
C)  7(
A)  Guaranty Program 
D)  SBA 101 Program 
E)  Small Business 401 Program

Question 12

Which of the following set 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 13

According to a study cited in the textbook, ________ of private companies meet the criterion established by business angels for investment.

Accepted Answer

A)  2 percent to 4 percent 
B)  10 percent to 15 percent 
C)  18 percent to 30 percent 
D)  32 percent to 48 percent 
E)  60 percent to 70 percent 
A)  2 percent to 4 percent 
B)  10 percent to 15 percent 
C)  18 percent to 30 percent 
D)  32 percent to 48 percent 
E)  60 percent to 70 percent

Question 14

Prosper is the best known:

Accepted Answer

A)  factor 
B)  provider of SBA guaranteed loans 
C)  peer-to-peer lending network 
D)  provider of vendor credit 
E)  crowdfunding network 
A)  factor 
B)  provider of SBA guaranteed loans 
C)  peer-to-peer lending network 
D)  provider of vendor credit 
E)  crowdfunding network

Question 15

Peter Simmons owns an electronic games company. Although Peter's game designers and programmers are very good, it takes 2-3 years to develop a good electronic game. This example illustrates the need for funding or financing referred to as:

Accepted Answer

A)  personnel costs 
B)  marketing costs 
C)  costs associated with building a brand 
D)  lengthy product development cycles 
E)  cash flow challenges 
A)  personnel costs 
B)  marketing costs 
C)  costs associated with building a brand 
D)  lengthy product development cycles 
E)  cash flow challenges

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

The three reasons startups need funding are:

In 2010, venture capital firms funded ________ deals .

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

Venture capitalists are individuals who invest their personal capital directly in startups.

In regard to the stages (or rounds) of venture capital funding, the stage of funding that occurs when an investment is made very early in a venture's life to fund the development of a prototype and feasibility analysis is referred to as:

What is an elevator speech? How did it get its name?

Historically, commercial banks have been viewed as an excellent source of financing for startup firms.

A lease 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.

What is meant by the term "bootstrapping"? Provide several examples of the ways that entrepreneurs bootstrap to raise money or cut costs?

The most notable SBA program available to small businesses is the:

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

According to a study cited in the textbook, ________ of private companies meet the criterion established by business angels for investment.

Prosper is the best known:

Peter Simmons owns an electronic games company. Although Peter's game designers and programmers are very good, it takes 2-3 years to develop a good electronic game. This example illustrates the need for funding or financing referred to as:

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

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 main difference between the SBIR and the STTR programs is that the STTR program requires the participation of:

The three reasons startups need funding are:

In 2010, venture capital firms funded ________ deals .

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

Venture capitalists are individuals who invest their personal capital directly in startups.

In regard to the stages (or rounds) of venture capital funding, the stage of funding that occurs when an investment is made very early in a venture's life to fund the development of a prototype and feasibility analysis is referred to as:

What is an elevator speech? How did it get its name?

Historically, commercial banks have been viewed as an excellent source of financing for startup firms.

A lease 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.

What is meant by the term "bootstrapping"? Provide several examples of the ways that entrepreneurs bootstrap to raise money or cut costs?

The most notable SBA program available to small businesses is the:

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

According to a study cited in the textbook, ________ of private companies meet the criterion established by business angels for investment.

Prosper is the best known:

Peter Simmons owns an electronic games company. Although Peter's game designers and programmers are very good, it takes 2-3 years to develop a good electronic game. This example illustrates the need for funding or financing referred to as:

Introduction to Entrepreneurship

Recognizing Opportunities and Generating Ideas

Feasibility Analysis

Writing a Business Plan

Industry and Competitor Analysis

Developing an Effective Business Model

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