Question 1

Since 2001,the average IPO has raised ________ for the issuing company.

Accepted Answer

A) $310 million 
B) $218 million 
C) $478 million 
D) $118 million 
A) $310 million 
B) $218 million 
C) $478 million 
D) $118 million

Question 2

Angels provide some of the startup capital for small companies.

Accepted Answer

A) True 
 B)False

Question 3

Entrepreneurs forgoing their paychecks during the start-up phase is known as sweat equity.

Accepted Answer

A) True 
 B)False

Question 4

Venture capitalists look for all of the following except:

Accepted Answer

A) competent management. 
B) industry stagnation. 
C) viable exit strategy. 
D) competitive edge. 
A) competent management. 
B) industry stagnation. 
C) viable exit strategy. 
D) competitive edge.

Question 5

Do angels finance start-ups or established firms?

Accepted Answer

Angels often finance deals that no ventu

Question 6

Working capital can be calculated by:

Accepted Answer

A) Current Asset - Current Liabilities. 
B) Total Asset - Current Liabilities. 
C) Total Liabilities - Total Asset. 
D) Total Asset - Total Liabilities. 
A) Current Asset - Current Liabilities. 
B) Total Asset - Current Liabilities. 
C) Total Liabilities - Total Asset. 
D) Total Asset - Total Liabilities.

Question 7

In an IPO,who signs the best efforts agreement?

Accepted Answer

A) Management 
B) Angel 
C) Underwriter 
D) Board of directors 
A) Management 
B) Angel 
C) Underwriter 
D) Board of directors

Question 8

The most important ingredient that venture capitalists look for in judging the potential success of a small business is a competent management team.

Accepted Answer

A) True 
 B)False

Question 9

Since 2001 there has been a ________ in the number of public offerings.

Accepted Answer

A) significant drop 
B) significant increase 
C) slight drop 
D) slight increase 
A) significant drop 
B) significant increase 
C) slight drop 
D) slight increase

Question 10

"Angels" typically invest in businesses in the start-up phase,providing the seed capital needed to get the business going.

Accepted Answer

A) True 
 B)False

Question 11

One of the biggest advantages of going public is:

Accepted Answer

A) the ability to attract low cost equity funding. 
B) the ability to retain control while gaining maximum funding. 
C) better employee morale and productivity. 
D) enhanced credibility and improved corporate image. 
A) the ability to attract low cost equity funding. 
B) the ability to retain control while gaining maximum funding. 
C) better employee morale and productivity. 
D) enhanced credibility and improved corporate image.

Question 12

The number of IPOs have dropped significantly since 2001.

Accepted Answer

A) True 
 B)False

Question 13

Once the letter of intent is signed,the next task is to prepare the registration statement.

Accepted Answer

A) True 
 B)False

Question 14

A firm commitment underwriting agreement essentially guarantees that the small company making the initial public offering will receive the funds it needs.

Accepted Answer

A) True 
 B)False

Question 15

In exchange for the financing they receive from venture capitalists,entrepreneurs must give up a portion of their businesses,sometimes surrendering a majority interest and control of its operations.

Accepted Answer

A) True 
 B)False

Question 16

When structuring a deal with an "angel," an entrepreneur should remember that:

Accepted Answer

A) "angels" tend to prefer a controlling interest in the business. 
B) the deal needs an annual return of 60-75%. 
C) "angel" money is patient,often waiting seven or more years to cash out. 
D) they prefer to earn their returns through dividends and interest. 
A) "angels" tend to prefer a controlling interest in the business. 
B) the deal needs an annual return of 60-75%. 
C) "angel" money is patient,often waiting seven or more years to cash out. 
D) they prefer to earn their returns through dividends and interest.

Question 17

The single most important ingredient in making a successful IPO is selecting a capable underwriter.

Accepted Answer

A) True 
 B)False

Since 2001,the average IPO has raised ________ for the issuing company.

Angels provide some of the startup capital for small companies.

Entrepreneurs forgoing their paychecks during the start-up phase is known as sweat equity.

Venture capitalists look for all of the following except:

Do angels finance start-ups or established firms?

Working capital can be calculated by:

In an IPO,who signs the best efforts agreement?

The most important ingredient that venture capitalists look for in judging the potential success of a small business is a competent management team.

Since 2001 there has been a ________ in the number of public offerings.

"Angels" typically invest in businesses in the start-up phase,providing the seed capital needed to get the business going.

One of the biggest advantages of going public is:

The number of IPOs have dropped significantly since 2001.

Once the letter of intent is signed,the next task is to prepare the registration statement.

A firm commitment underwriting agreement essentially guarantees that the small company making the initial public offering will receive the funds it needs.

In exchange for the financing they receive from venture capitalists,entrepreneurs must give up a portion of their businesses,sometimes surrendering a majority interest and control of its operations.

When structuring a deal with an "angel," an entrepreneur should remember that:

The single most important ingredient in making a successful IPO is selecting a capable underwriter.

Entrepreneurs: the Driving Force Behind Small Business

Ethics and Social Responsibility: Doing the Right Thing

Creativity and Innovation: Keys to Entrepreneurial Success

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

New Business Planning Process: Feasibility Analysis,business Modeling,

Building a Bootstrap Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Creating a Solid Financial Plan

Managing Cash Flow

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

The Legal Environment: Business Law and Government Regulation

Filters

Exam 16: Sources of Equity Financing

Since 2001,the average IPO has raised ________ for the issuing company.

Angels provide some of the startup capital for small companies.

Entrepreneurs forgoing their paychecks during the start-up phase is known as sweat equity.

Venture capitalists look for all of the following except:

Do angels finance start-ups or established firms?

Working capital can be calculated by:

In an IPO,who signs the best efforts agreement?

The most important ingredient that venture capitalists look for in judging the potential success of a small business is a competent management team.

Since 2001 there has been a ________ in the number of public offerings.

"Angels" typically invest in businesses in the start-up phase,providing the seed capital needed to get the business going.

One of the biggest advantages of going public is:

The number of IPOs have dropped significantly since 2001.

Once the letter of intent is signed,the next task is to prepare the registration statement.

A firm commitment underwriting agreement essentially guarantees that the small company making the initial public offering will receive the funds it needs.

In exchange for the financing they receive from venture capitalists,entrepreneurs must give up a portion of their businesses,sometimes surrendering a majority interest and control of its operations.

When structuring a deal with an "angel," an entrepreneur should remember that:

The single most important ingredient in making a successful IPO is selecting a capable underwriter.

Entrepreneurs: the Driving Force Behind Small Business

Ethics and Social Responsibility: Doing the Right Thing

Creativity and Innovation: Keys to Entrepreneurial Success

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

New Business Planning Process: Feasibility Analysis,business Modeling,

Building a Bootstrap Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Creating a Solid Financial Plan

Managing Cash Flow

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

The Legal Environment: Business Law and Government Regulation

Filters