Exam 13: Entrepreneurial Finance

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Discuss the premise behind fund-raising strategies of the successful entrepreneur.

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The premise is that successful entrepreneurs are aware of potentially punishing situations,and that they are careful to "sweat the details" and proceed with a certain degree of wariness as they evaluate,select,negotiate,and craft business relationships with potential funding sources.In doing so,they are more likely to find the right sources,at the right time,and on the right terms and conditions.They are also more likely to avoid potential mismatches,costly sidetracking for the wrong sources,and the disastrous marriage to these sources that might follow.

In the financial strategy framework,financial requirements are driven by all of the following except:

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C

An entrepreneur's bargaining power is directly related to the cash position of the venture.

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What phenomenon is at the heart of the financing challenges facing new and high revenue growth companies?

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A new or existing business needs to obtain both equity and debt financing if it is to have a sound financial foundation.

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An existing business seeking expansion capital or funds for temporary use has a much easier job obtaining a combination of debt and equity.

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Short-term debt is most often used by a business for working capital and is repaid out of the proceeds of its sales.

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Short-term debt is incurred in ________ months or less.

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Mezzanine and bridge capital is available at what venture stage of development?

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Strategies that optimize or maximize the amount of money to be raised decrease the risk in new and emerging companies.

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Name four factors that can affect the availability of various financing options and their suitability and cost.

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What is the most likely source for early stage equity capital under $250,000?

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Which of the following is a likely source for funding a venture that is preparing for a harvest?

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In the financial strategy framework,degrees of financial freedom include all of the following except:

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________ borrowings are used to finance the purchase of property or equipment that serves as collateral for the loan.

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Long-term loans are debt instruments that mature in as few as three years.

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A fund-raising strategy commits the company to actions that may have an impact on future financing options.

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The core concept in determining the external financing requirements of the venture is ________.

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What are the three core principles of entrepreneurial finance?

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Long-term borrowings are used for working capital and/or to finance the purchase of property or equipment.

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