Exam 10: Getting Financing or Funding

Peter Simmons owns a specialized computer software company. Although Peter's software designers and programmers are very good, it takes 2-3 years to develop a good software product. This example illustrates the need for funding or financing referred to as ________.

The most notable SBA program available to small businesses is the ________.

Amy Clark just opened a soup and salad restaurant near Golden Gate Park in San Francisco, CA. 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 ________.

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

Courtney Young is the founder of a company in the semiconductor industry. Courtney's firm is still in the feasibility analysis stage and doesn't have a product that is ready to sell. The company is spending about $25,000 per month and expects to maintain that level of spending until it reaches profitability. The $25,000 a month is Courtney's ________ rate.

The three most common forms of equity funding are ________.

According to the textbook, beyond their own funds, the second source of funds for many new ventures is ________.

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

Which of the following statements is incorrect about grant programs?

For startup firms, some products are under development for years before they generate earnings. The upfront costs often exceed a firm's ability to fund these activities on its own. Which of the following reasons that motivate firms to seek funding or financing is illustrated in this example?

Why do most firms need funding? Provide a brief explanation of each reason.

A brief, carefully constructed statement that outlines the merits of a business opportunity is called a(n) ________ speech.

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

________ are individuals who invest their personal capital directly in start-ups.

Kickstarter and Indiegogo are examples of ________ crowdfunding sites.

The first sale of stock by a firm to the public is referred to as a(n) ________.

The What Went Wrong? feature in Chapter 10 focuses on DrawQuest. DrawQuest captured the attention of venture capitalists, gained 25,000 users, and still failed. According to the feature, the main reason DrawQuest failed is that the founders ________.

Katy Anderson's startup, which is in the organic fruit and vegetables industry, was launched on January 1, 2015. However, prior to its formal launch, Katy spent many hours working on her business, particularly during the feasibility analysis stage. The time and effort that entrepreneurs put into their venture, that can't be easily measured from a financial point of view, is referred to as ________ equity.

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

Equity financing (or funding) means ________.