Question 1

________ are limited partnerships of money managers who raise money in "funds" to invest in start-ups and growing firms.

Accepted Answer

A)  Venture capital firms 
B)  Business angels 
C)  Institutional investors 
D)  Investment bankers 
E)  Business capitalists 
A)  Venture capital firms 
B)  Business angels 
C)  Institutional investors 
D)  Investment bankers 
E)  Business capitalists

Question 2

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 3

Amy Clark just opened a soup and salad restaurant near Golden Gate Park in San Francisco. Rather than borrow money or raise funds from investors, Amy used her creativity and ingenuity and figured out how to get her business up and running without the need for external funding. Amy is utilizing a technique referred to as:

Accepted Answer

A)  networking 
B)  reaching 
C)  scrounging 
D)  prospecting 
E)  bootstrapping 
A)  networking 
B)  reaching 
C)  scrounging 
D)  prospecting 
E)  bootstrapping

Question 4

According to our textbook, the seed money that gets a company off the ground typically comes from:

Accepted Answer

A)  angel investors 
B)  venture capitalists 
C)  commercial banks 
D)  governmental agencies 
E)  the founders of the firm 
A)  angel investors 
B)  venture capitalists 
C)  commercial banks 
D)  governmental agencies 
E)  the founders of the firm

Question 5

Debt financing means exchanging partial ownership in a firm in exchange for cash.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statement is not correct regarding business angels?

Accepted Answer

A)  Business angels invest in more startups on a yearly basis than venture capitalists. 
B)  The number of angel investors has decreased dramatically over the past decade. 
C)  Business angels usually take a seat on the board of directors of the firms in which they invest. 
D)  Business angels are valuable because of their willingness to make relatively small investments. 
E)  Business angels are difficult to find. 
A)  Business angels invest in more startups on a yearly basis than venture capitalists. 
B)  The number of angel investors has decreased dramatically over the past decade. 
C)  Business angels usually take a seat on the board of directors of the firms in which they invest. 
D)  Business angels are valuable because of their willingness to make relatively small investments. 
E)  Business angels are difficult to find.

Question 7

The What Went Wrong? feature in Chapter 10 focuses on Webvan, one of the most dramatic failures in startup history. The overarching point of the feature is that a major contributor to Webvan's failure was:

Accepted Answer

A)  it was undercapitalized 
B)  it had a lack of qualified personnel 
C)  it had severe cash flow challenges 
D)  it had too lengthy of a product development cycle 
E)  it had too much money 
A)  it was undercapitalized 
B)  it had a lack of qualified personnel 
C)  it had severe cash flow challenges 
D)  it had too lengthy of a product development cycle 
E)  it had too much money

Question 8

Equity financing (or funding) means:

Accepted Answer

A)  exchanging partial ownership in a firm, usually in the form of stock, for funding 
B)  getting a grant or outright gift 
C)  getting a loan 
D)  getting a lease 
E)  getting a loan guarantee 
A)  exchanging partial ownership in a firm, usually in the form of stock, for funding 
B)  getting a grant or outright gift 
C)  getting a loan 
D)  getting a lease 
E)  getting a loan guarantee

Question 9

The SBIR and STTR programs are two important sources of early stage funds for technology firms.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following was not identified in the textbook as a common (and sound) bootstrapping strategy?

Accepted Answer

A)  coordinate purchases with other businesses 
B)  hire interns 
C)  minimize personal expenses 
D)  buy rather than lease equipment 
E)  obtain payments in advance from customers 
A)  coordinate purchases with other businesses 
B)  hire interns 
C)  minimize personal expenses 
D)  buy rather than lease equipment 
E)  obtain payments in advance from customers

Question 11

A ________ 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)  assurance 
B)  loan 
C)  guarantee 
D)  warranty 
E)  lease 
A)  assurance 
B)  loan 
C)  guarantee 
D)  warranty 
E)  lease

Question 12

There are three reasons that most firms need to rains money during their early life: cash flow challenges, capital investments, and lengthy product development cycles.

Accepted Answer

A) True 
 B)False

Question 13

As part of drumming up support for an IPO, the investment bank typically takes the top management team of the firm wanting to go public on a ________, which is a whirlwind tour that consists of meetings in key cities where the firm presents its business plan to groups of investors.

Accepted Answer

A)  pitch show 
B)  road show 
C)  pitch tour 
D)  road trip 
E)  tornado tour 
A)  pitch show 
B)  road show 
C)  pitch tour 
D)  road trip 
E)  tornado tour

Question 14

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

Accepted Answer

An elevator speech is a brief,carefully

Question 15

Venture capitalists shoot for a ________ annual return on their investment.

Accepted Answer

A)  5 to 15 percent 
B)  10 to 20 percent 
C)  20 to 25 percent 
D)  25 to 30 percent 
E)  30 to 40 percent 
A)  5 to 15 percent 
B)  10 to 20 percent 
C)  20 to 25 percent 
D)  25 to 30 percent 
E)  30 to 40 percent

________ are limited partnerships of money managers who raise money in "funds" to invest in start-ups and growing firms.

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

According to our textbook, the seed money that gets a company off the ground typically comes from:

Debt financing means exchanging partial ownership in a firm in exchange for cash.

Which of the following statement is not correct regarding business angels?

The What Went Wrong? feature in Chapter 10 focuses on Webvan, one of the most dramatic failures in startup history. The overarching point of the feature is that a major contributor to Webvan's failure was:

Equity financing (or funding) means:

The SBIR and STTR programs are two important sources of early stage funds for technology firms.

Which of the following was not identified in the textbook as a common (and sound) bootstrapping strategy?

A ________ 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.

There are three reasons that most firms need to rains money during their early life: cash flow challenges, capital investments, and lengthy product development cycles.

As part of drumming up support for an IPO, the investment bank typically takes the top management team of the firm wanting to go public on a ________, which is a whirlwind tour that consists of meetings in key cities where the firm presents its business plan to groups of investors.

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

Venture capitalists shoot for a ________ annual return on their investment.

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 Venture's 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

________ are limited partnerships of money managers who raise money in "funds" to invest in start-ups and growing firms.

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

According to our textbook, the seed money that gets a company off the ground typically comes from:

Debt financing means exchanging partial ownership in a firm in exchange for cash.

Which of the following statement is not correct regarding business angels?

The What Went Wrong? feature in Chapter 10 focuses on Webvan, one of the most dramatic failures in startup history. The overarching point of the feature is that a major contributor to Webvan's failure was:

Equity financing (or funding) means:

The SBIR and STTR programs are two important sources of early stage funds for technology firms.

Which of the following was not identified in the textbook as a common (and sound) bootstrapping strategy?

A ________ 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.

There are three reasons that most firms need to rains money during their early life: cash flow challenges, capital investments, and lengthy product development cycles.

As part of drumming up support for an IPO, the investment bank typically takes the top management team of the firm wanting to go public on a ________, which is a whirlwind tour that consists of meetings in key cities where the firm presents its business plan to groups of investors.

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

Venture capitalists shoot for a ________ annual return on their investment.

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 Venture's 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