Question 1

A "commitment fee" is used in arranging for a:

Accepted Answer

A)  commercial loan. 
B)  character loan. 
C)  installment loan. 
D)  line of credit. 
A)  commercial loan. 
B)  character loan. 
C)  installment loan. 
D)  line of credit.

Question 2

Rule 506 goes one step further than Rule 505 by allowing an issuing company to sell an unlimited number of securities to 35 investors and an unlimited number of accredited investors and relatives of issuers.

Accepted Answer

A) True 
 B)False

Question 3

Long-term debt financing is normally used to provide working capital to finance inventory,accounts receivable,and operation of the business.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is true

Accepted Answer

A)  Rule 505 permits the sale of $10 million of unregistered securities in the private offering in any 12-month period. 
B)  Rule 504 and 505 permit no general advertising or solicitation through public media. 
C)  Rule 506 provides the first exemption to a company seeking to raise a small amount of capital from numerous investors. 
D)  The entrepreneur issuing the private offering is spared the burden of proving that the exemptions granted have been met. 
A)  Rule 505 permits the sale of $10 million of unregistered securities in the private offering in any 12-month period. 
B)  Rule 504 and 505 permit no general advertising or solicitation through public media. 
C)  Rule 506 provides the first exemption to a company seeking to raise a small amount of capital from numerous investors. 
D)  The entrepreneur issuing the private offering is spared the burden of proving that the exemptions granted have been met.

Question 5

In a factoring arrangement,the factor:

Accepted Answer

A)  takes no risk and sustains no losses. 
B)  "buys" the accounts receivables of a firm. 
C)  receives no interest payment. 
D)  pays a premium for the firm's assets. 
A)  takes no risk and sustains no losses. 
B)  "buys" the accounts receivables of a firm. 
C)  receives no interest payment. 
D)  pays a premium for the firm's assets.

Question 6

Any patent rights on technology developed in SBIR grants are the property of the federal government.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following types of credit does not require the pledging of an individual's collateral or a cosigner

Accepted Answer

A)  Line of credit 
B)  Character loan 
C)  Trust receipts 
D)  Mortgage loan 
A)  Line of credit 
B)  Character loan 
C)  Trust receipts 
D)  Mortgage loan

Question 8

Which grant program requires partners at universities or other nonprofit institutions

Accepted Answer

A)  The 504 program 
B)  Small Business Innovation Research 
C)  The SBA 7(a) 
D)  Small Business Technology Transfer 
A)  The 504 program 
B)  Small Business Innovation Research 
C)  The SBA 7(a) 
D)  Small Business Technology Transfer

Question 9

In a factoring arrangement,the bank lends the business money using inventory as collateral.

Accepted Answer

A) True 
 B)False

Question 10

When the finished goods inventory is the asset base for a loan:

Accepted Answer

A)  a trust receipt is not generally used. 
B)  factoring may be arranged. 
C)  about 50 percent of it can be financed. 
D)  all of the inventory can be financed. 
A)  a trust receipt is not generally used. 
B)  factoring may be arranged. 
C)  about 50 percent of it can be financed. 
D)  all of the inventory can be financed.

Question 11

Explain and define the four types of asset backed loans.

Accepted Answer

A.Accounts Receivable Loans-using A/R as

Question 12

Which of the following is not a form of cash flow financing

Accepted Answer

A)  Trust receipt 
B)  Character loan 
C)  Line of credit 
D)  Installment loan 
A)  Trust receipt 
B)  Character loan 
C)  Line of credit 
D)  Installment loan

Question 13

Accredited investors are:

Accepted Answer

A)  investors who purchase over $5,000 of the venture's securities. 
B)  investors with incomes of no less than $5,000 in each of the last two years. 
C)  investors whose net worth is $500,000 or less. 
D)  directors, executive officers, and general partners of the issuing company. 
A)  investors who purchase over $5,000 of the venture's securities. 
B)  investors with incomes of no less than $5,000 in each of the last two years. 
C)  investors whose net worth is $500,000 or less. 
D)  directors, executive officers, and general partners of the issuing company.

A "commitment fee" is used in arranging for a:

Rule 506 goes one step further than Rule 505 by allowing an issuing company to sell an unlimited number of securities to 35 investors and an unlimited number of accredited investors and relatives of issuers.

Long-term debt financing is normally used to provide working capital to finance inventory,accounts receivable,and operation of the business.

Which of the following statements is true

In a factoring arrangement,the factor:

Any patent rights on technology developed in SBIR grants are the property of the federal government.

Which of the following types of credit does not require the pledging of an individual's collateral or a cosigner

Which grant program requires partners at universities or other nonprofit institutions

In a factoring arrangement,the bank lends the business money using inventory as collateral.

When the finished goods inventory is the asset base for a loan:

Explain and define the four types of asset backed loans.

Which of the following is not a form of cash flow financing

Accredited investors are:

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

A "commitment fee" is used in arranging for a:

Rule 506 goes one step further than Rule 505 by allowing an issuing company to sell an unlimited number of securities to 35 investors and an unlimited number of accredited investors and relatives of issuers.

Long-term debt financing is normally used to provide working capital to finance inventory,accounts receivable,and operation of the business.

Which of the following statements is true

In a factoring arrangement,the factor:

Any patent rights on technology developed in SBIR grants are the property of the federal government.

Which of the following types of credit does not require the pledging of an individual's collateral or a cosigner

Which grant program requires partners at universities or other nonprofit institutions

In a factoring arrangement,the bank lends the business money using inventory as collateral.

When the finished goods inventory is the asset base for a loan:

Explain and define the four types of asset backed loans.

Which of the following is not a form of cash flow financing

Accredited investors are:

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