Question 1

When a company receives an SBIR grant,any patent rights and software generated belong to:

Accepted Answer

A) the Federal Government. 
B) the bank securing the loan. 
C) the Small Business Administration. 
D) the entrepreneur. 
A) the Federal Government. 
B) the bank securing the loan. 
C) the Small Business Administration. 
D) the entrepreneur.

Question 2

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 3

Regulation D regulates private placements.

Accepted Answer

A) True 
 B)False

Question 4

In general the SBA usually guarantees ____ of loans up to $150,000 and ____ of loans up to $5,000,000.

Accepted Answer

A) 60%,50% 
B) 85%,95% 
C) 85%,75% 
D) 100%,95% 
A) 60%,50% 
B) 85%,95% 
C) 85%,75% 
D) 100%,95%

Question 5

When a bank grants a line of credit,a "commitment fee" is assessed at the start of the loan.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not one of the five C's of lending?

Accepted Answer

A) Caution 
B) Character 
C) Conditions 
D) Capacity 
A) Caution 
B) Character 
C) Conditions 
D) Capacity

Question 7

Banks will lend a company up to 50% of their account receivable value.

Accepted Answer

A) True 
 B)False

Question 8

An entrepreneur contributing his or her own capital would be an example of internally generated funds.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

In a straight commercial loan funds are typically used for what time period?

Accepted Answer

A) Less than 30 days 
B) 30-90 days 
C) 180 days 
D) Up to one year 
A) Less than 30 days 
B) 30-90 days 
C) 180 days 
D) Up to one year

Question 11

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 12

Accredited investors are:

Accepted Answer

A) investors who purchase over $5,000 of the venture's securities. 
B) investors with incomes in excess of $1,000,000 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 in excess of $1,000,000 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.

Question 13

Research and development limited partnerships provide funds for entrepreneurs in high-tech fields through:

Accepted Answer

A) debt from lenders. 
B) equity from present owners. 
C) investors looking for tax shelters. 
D) cash from internal operations. 
A) debt from lenders. 
B) equity from present owners. 
C) investors looking for tax shelters. 
D) cash from internal operations.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Under the Small Business Technology transfer (STTR)program,federal agencies with budgets over $1 billion are required to set aside 0.3 percent for small businesses.

Accepted Answer

A) True 
 B)False

Question 17

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 18

The five C's of credit are character,capacity,collateral,capital and competence.

Accepted Answer

A) True 
 B)False

Question 19

Most R&D limited partnerships are not successful.

Accepted Answer

A) True 
 B)False

Question 20

When 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.

When a company receives an SBIR grant,any patent rights and software generated belong to:

In a factoring arrangement,the factor:

Regulation D regulates private placements.

In general the SBA usually guarantees of loans up to $150,000 and of loans up to $5,000,000.

When a bank grants a line of credit,a "commitment fee" is assessed at the start of the loan.

Which of the following is not one of the five C's of lending?

Banks will lend a company up to 50% of their account receivable value.

An entrepreneur contributing his or her own capital would be an example of internally generated funds.

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

In a straight commercial loan funds are typically used for what time period?

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

Accredited investors are:

Research and development limited partnerships provide funds for entrepreneurs in high-tech fields through:

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

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

Under the Small Business Technology transfer (STTR)program,federal agencies with budgets over $1 billion are required to set aside 0.3 percent for small businesses.

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

The five C's of credit are character,capacity,collateral,capital and competence.

Most R&D limited partnerships are not successful.

When inventory is the asset base for a loan:

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property 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

When a company receives an SBIR grant,any patent rights and software generated belong to:

In a factoring arrangement,the factor:

Regulation D regulates private placements.

In general the SBA usually guarantees ____ of loans up to $150,000 and ____ of loans up to $5,000,000.

When a bank grants a line of credit,a "commitment fee" is assessed at the start of the loan.

Which of the following is not one of the five C's of lending?

Banks will lend a company up to 50% of their account receivable value.

An entrepreneur contributing his or her own capital would be an example of internally generated funds.

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

In a straight commercial loan funds are typically used for what time period?

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

Accredited investors are:

Research and development limited partnerships provide funds for entrepreneurs in high-tech fields through:

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

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

Under the Small Business Technology transfer (STTR)program,federal agencies with budgets over $1 billion are required to set aside 0.3 percent for small businesses.

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

The five C's of credit are character,capacity,collateral,capital and competence.

Most R&D limited partnerships are not successful.

When inventory is the asset base for a loan:

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property 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

In general the SBA usually guarantees of loans up to $150,000 and of loans up to $5,000,000.