Question 1

Banks will lend a company up to 50 percent of their accounts receivable value.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not true about the costs and benefits of R&D limited partnerships

Accepted Answer

A)  Most are not successful 
B)  Risk is reduced 
C)  Costs can be high to create the partnership 
D)  Most take less than three months to establish 
A)  Most are not successful 
B)  Risk is reduced 
C)  Costs can be high to create the partnership 
D)  Most take less than three months to establish

Question 3

During Phase II of an SBIR grant up to ________ can be awarded.

Accepted Answer

A)  $100,000 
B)  $500,000 
C)  $750,000 
D)  $1,000,000 
A)  $100,000 
B)  $500,000 
C)  $750,000 
D)  $1,000,000

Question 4

Under the ________ program,federal agencies with budgets over $1 billion are required to set aside 0.3 percent for small businesses.

Accepted Answer

A)  Small Business Technology Transfer 
B)  Small Business Innovation Research 
C)  SBA Microloan 
D)  Regulation D 
A)  Small Business Technology Transfer 
B)  Small Business Innovation Research 
C)  SBA Microloan 
D)  Regulation D

Question 5

Equity financing requires collateral.

Accepted Answer

A) True 
 B)False

Question 6

Equity partnerships,royalty partnerships,and joint ventures are used in the ________ stage of limited partnerships to reap the benefits of the effort.

Accepted Answer

A)  funding 
B)  development 
C)  exit 
D)  All of the answers are correct. 
A)  funding 
B)  development 
C)  exit 
D)  All of the answers are correct.

Question 7

The personal funds of the entrepreneur are the most expensive.

Accepted Answer

A) True 
 B)False

Question 8

The Small Business 7(a)Guaranty program:

Accepted Answer

A)  guarantees up to 50 percent of the amount loaned. 
B)  helps qualified small businesses obtain financing when they cannot obtain it through regular lending channels. 
C)  has a maximum loan amount of $10 million. 
D)  loans can be used only for machinery and equipment, and land and building. 
A)  guarantees up to 50 percent of the amount loaned. 
B)  helps qualified small businesses obtain financing when they cannot obtain it through regular lending channels. 
C)  has a maximum loan amount of $10 million. 
D)  loans can be used only for machinery and equipment, and land and building.

Question 9

Mortgage financing is another term for:

Accepted Answer

A)  large equipment asset-based financing. 
B)  real-estate asset-based financing. 
C)  sale-leaseback financing. 
D)  unsecured financing. 
A)  large equipment asset-based financing. 
B)  real-estate asset-based financing. 
C)  sale-leaseback financing. 
D)  unsecured financing.

Question 10

Under Rule 504 of Regulation D,a company can sell up to $1,000,000 of securities to any number of investors,regardless of their sophistication,in any 12-month period.

Accepted Answer

A) True 
 B)False

Question 11

Identify and explain the three types of loans used for cash flow financing.

Accepted Answer

A.Installment loans-Installment loans ca

Question 12

Which of the following is not an example of internal financing

Accepted Answer

A)  Profits 
B)  Accounts receivable 
C)  Credit from suppliers 
D)  Equity financing 
A)  Profits 
B)  Accounts receivable 
C)  Credit from suppliers 
D)  Equity financing

Question 13

The costs of establishing R&D limited partnerships are greater than conventional financing.

Accepted Answer

A) True 
 B)False

Question 14

All owners,regardless of percentage of ownership,are required to personally guarantee SBA loans.

Accepted Answer

A) True 
 B)False

Question 15

When borrowing from friends and family,the entrepreneur should avoid putting agreements in writing to avoid future disagreements.

Accepted Answer

A) True 
 B)False

Question 16

About 90 percent of the value of finished goods inventory can be used as collateral for a commercial bank loan.

Accepted Answer

A) True 
 B)False

Question 17

When new equipment is being purchased or presently owned equipment is used as collateral,usually 50 to 80 percent of the value of the equipment can be financed depending on its salability.

Accepted Answer

A) True 
 B)False

Question 18

When using private placement funding the entrepreneur must disclose all information as accurately as possible.

Accepted Answer

A) True 
 B)False

Question 19

Bootstrap financing involves using any possible method,such as discounts for volume purchasing,to conserve cash.

Accepted Answer

A) True 
 B)False

Question 20

The five Cs of credit are character,capacity,collateral,capital,and competence.

Accepted Answer

A) True 
 B)False

Banks will lend a company up to 50 percent of their accounts receivable value.

Which of the following is not true about the costs and benefits of R&D limited partnerships

During Phase II of an SBIR grant up to ________ can be awarded.

Under the ________ program,federal agencies with budgets over $1 billion are required to set aside 0.3 percent for small businesses.

Equity financing requires collateral.

Equity partnerships,royalty partnerships,and joint ventures are used in the ________ stage of limited partnerships to reap the benefits of the effort.

The personal funds of the entrepreneur are the most expensive.

The Small Business 7(a)Guaranty program:

Mortgage financing is another term for:

Under Rule 504 of Regulation D,a company can sell up to $1,000,000 of securities to any number of investors,regardless of their sophistication,in any 12-month period.

Identify and explain the three types of loans used for cash flow financing.

Which of the following is not an example of internal financing

The costs of establishing R&D limited partnerships are greater than conventional financing.

All owners,regardless of percentage of ownership,are required to personally guarantee SBA loans.

When borrowing from friends and family,the entrepreneur should avoid putting agreements in writing to avoid future disagreements.

About 90 percent of the value of finished goods inventory can be used as collateral for a commercial bank loan.

When new equipment is being purchased or presently owned equipment is used as collateral,usually 50 to 80 percent of the value of the equipment can be financed depending on its salability.

When using private placement funding the entrepreneur must disclose all information as accurately as possible.

Bootstrap financing involves using any possible method,such as discounts for volume purchasing,to conserve cash.

The five Cs of credit are character,capacity,collateral,capital,and competence.

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters

Exam 11: Sources of Capital

Banks will lend a company up to 50 percent of their accounts receivable value.

Which of the following is not true about the costs and benefits of R&D limited partnerships

During Phase II of an SBIR grant up to ________ can be awarded.

Under the ________ program,federal agencies with budgets over $1 billion are required to set aside 0.3 percent for small businesses.

Equity financing requires collateral.

Equity partnerships,royalty partnerships,and joint ventures are used in the ________ stage of limited partnerships to reap the benefits of the effort.

The personal funds of the entrepreneur are the most expensive.

The Small Business 7(a)Guaranty program:

Mortgage financing is another term for:

Under Rule 504 of Regulation D,a company can sell up to $1,000,000 of securities to any number of investors,regardless of their sophistication,in any 12-month period.

Identify and explain the three types of loans used for cash flow financing.

Which of the following is not an example of internal financing

The costs of establishing R&D limited partnerships are greater than conventional financing.

All owners,regardless of percentage of ownership,are required to personally guarantee SBA loans.

When borrowing from friends and family,the entrepreneur should avoid putting agreements in writing to avoid future disagreements.

About 90 percent of the value of finished goods inventory can be used as collateral for a commercial bank loan.

When new equipment is being purchased or presently owned equipment is used as collateral,usually 50 to 80 percent of the value of the equipment can be financed depending on its salability.

When using private placement funding the entrepreneur must disclose all information as accurately as possible.

Bootstrap financing involves using any possible method,such as discounts for volume purchasing,to conserve cash.

The five Cs of credit are character,capacity,collateral,capital,and competence.

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Organizational Plan

The Financial Plan

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters