Question 1

Bootstrap financing decreases the company's flexibility and drive for sales.

Accepted Answer

A) True 
 B)False

Question 2

In ________ the entrepreneur sells equipment to the lender then arranges for its continued use.

Accepted Answer

A)  a factoring arrangement 
B)  trust receipts 
C)  cash flow financing 
D)  a sale-leaseback arrangement 
A)  a factoring arrangement 
B)  trust receipts 
C)  cash flow financing 
D)  a sale-leaseback arrangement

Question 3

In an R&D limited partnership the liability for losses incurred is borne by the limited partners.

Accepted Answer

A) True 
 B)False

Question 4

Bootstrap financing helps avoid some of the problems of external capital like decreases in flexibility and increased impulse to spend.

Accepted Answer

A) True 
 B)False

Question 5

________ financing involves using any possible methods for conserving cash.

Accepted Answer

A)  Bootstrap 
B)  SBIR 
C)  Private placement 
D)  Floor planning 
A)  Bootstrap 
B)  SBIR 
C)  Private placement 
D)  Floor planning

Question 6

Typically,debt financing requires:

Accepted Answer

A)  an asset as collateral. 
B)  a degree of ownership in the firm. 
C)  reduction of short-term assets. 
D)  reduction of working capital. 
A)  an asset as collateral. 
B)  a degree of ownership in the firm. 
C)  reduction of short-term assets. 
D)  reduction of working capital.

Question 7

The type of funds most frequently used by businesses is externally generated funds.

Accepted Answer

A) True 
 B)False

Question 8

Obtaining funds from private investors:

Accepted Answer

A)  is inappropriate for new ventures. 
B)  is a public offering. 
C)  is covered by Regulation D. 
D)  involves a great deal of time and expense. 
A)  is inappropriate for new ventures. 
B)  is a public offering. 
C)  is covered by Regulation D. 
D)  involves a great deal of time and expense.

Question 9

The SBA 7(a)loan program has a maximum loan amount of $5 million.

Accepted Answer

A) True 
 B)False

Question 10

Regulation D regulates private offerings.

Accepted Answer

A) True 
 B)False

Question 11

The most frequently used source of funds for start-ups is:

Accepted Answer

A)  the entrepreneur's personal funds. 
B)  bank loans. 
C)  credit cards. 
D)  SBA loans. 
A)  the entrepreneur's personal funds. 
B)  bank loans. 
C)  credit cards. 
D)  SBA loans.

Question 12

When a new entrepreneur is unable to obtain an SBA loan,they turn to a commercial bank.

Accepted Answer

A) True 
 B)False

Question 13

A bank may finance up to ________ of a company's accounts receivable.

Accepted Answer

A)  50 percent 
B)  60 percent 
C)  70 percent 
D)  80 percent 
A)  50 percent 
B)  60 percent 
C)  70 percent 
D)  80 percent

Question 14

Research and development limited partnerships provide small businesses funds from investors looking for tax shelters.

Accepted Answer

A) True 
 B)False

Question 15

The asset base for loans usually is accounts receivable,inventory,equipment,or real estate.

Accepted Answer

A) True 
 B)False

Question 16

Debt financing requires the entrepreneur to repay the amount borrowed plus interest.

Accepted Answer

A) True 
 B)False

Question 17

All owners of ________ or more are required to personally guarantee an SBA loan.

Accepted Answer

A)  20 percent 
B)  30 percent 
C)  35 percent 
D)  40 percent 
A)  20 percent 
B)  30 percent 
C)  35 percent 
D)  40 percent

Question 18

A trust receipt is a:

Accepted Answer

A)  type of accounts payable loan. 
B)  type of real estate loan. 
C)  type of inventory loan. 
D)  type of cash flow financing loan. 
A)  type of accounts payable loan. 
B)  type of real estate loan. 
C)  type of inventory loan. 
D)  type of cash flow financing loan.

Question 19

Outside financing:

Accepted Answer

A)  usually takes between 15 days to three months to raise capital. 
B)  increases the company's flexibility. 
C)  increases the venture's impulse to spend. 
D)  increases a firm's drive for sales and profits. 
A)  usually takes between 15 days to three months to raise capital. 
B)  increases the company's flexibility. 
C)  increases the venture's impulse to spend. 
D)  increases a firm's drive for sales and profits.

Question 20

To improve the chances of being approved for a bank loan,the entrepreneur should prepare a "mini" business plan for the loan committee.

Accepted Answer

A) True 
 B)False

Bootstrap financing decreases the company's flexibility and drive for sales.

In ________ the entrepreneur sells equipment to the lender then arranges for its continued use.

In an R&D limited partnership the liability for losses incurred is borne by the limited partners.

Bootstrap financing helps avoid some of the problems of external capital like decreases in flexibility and increased impulse to spend.

________ financing involves using any possible methods for conserving cash.

Typically,debt financing requires:

The type of funds most frequently used by businesses is externally generated funds.

Obtaining funds from private investors:

The SBA 7(a)loan program has a maximum loan amount of $5 million.

Regulation D regulates private offerings.

The most frequently used source of funds for start-ups is:

When a new entrepreneur is unable to obtain an SBA loan,they turn to a commercial bank.

A bank may finance up to ________ of a company's accounts receivable.

Research and development limited partnerships provide small businesses funds from investors looking for tax shelters.

The asset base for loans usually is accounts receivable,inventory,equipment,or real estate.

Debt financing requires the entrepreneur to repay the amount borrowed plus interest.

All owners of ________ or more are required to personally guarantee an SBA loan.

A trust receipt is a:

Outside financing:

To improve the chances of being approved for a bank loan,the entrepreneur should prepare a "mini" business plan for the loan committee.

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

Bootstrap financing decreases the company's flexibility and drive for sales.

In ________ the entrepreneur sells equipment to the lender then arranges for its continued use.

In an R&D limited partnership the liability for losses incurred is borne by the limited partners.

Bootstrap financing helps avoid some of the problems of external capital like decreases in flexibility and increased impulse to spend.

________ financing involves using any possible methods for conserving cash.

Typically,debt financing requires:

The type of funds most frequently used by businesses is externally generated funds.

Obtaining funds from private investors:

The SBA 7(a)loan program has a maximum loan amount of $5 million.

Regulation D regulates private offerings.

The most frequently used source of funds for start-ups is:

When a new entrepreneur is unable to obtain an SBA loan,they turn to a commercial bank.

A bank may finance up to ________ of a company's accounts receivable.

Research and development limited partnerships provide small businesses funds from investors looking for tax shelters.

The asset base for loans usually is accounts receivable,inventory,equipment,or real estate.

Debt financing requires the entrepreneur to repay the amount borrowed plus interest.

All owners of ________ or more are required to personally guarantee an SBA loan.

A trust receipt is a:

Outside financing:

To improve the chances of being approved for a bank loan,the entrepreneur should prepare a "mini" business plan for the loan committee.

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