ETR Chapter 8 Flashcards
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equitable payback
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At start-up time, forms of financing includes all but which of the following
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equity
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Which of the following is (are) sources of capital for entrepreneurs
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necessary
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Many new ventures find that debt financing is
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8,000
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Approximately how many commercial banks are there in this country
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What interest rate did you have in mind?
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Which of the following is not a question commonly asked by banks of entrepreneurs
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insurance companies
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When starting a business, which of the following sources of financing are least likely to be used
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trade credit
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When starting a business, which of the following sources of financing are most likely to be used
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trade credit
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Which of the following would be most commonly used for short-term financing
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finance companies
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Which of the following would be most commonly used for medium-term financing
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insurance companies
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Which of the following would be most commonly used for long-term financing
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factoring
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When accounts receivable are bought form a company for capital funding it is called
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private placement
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Which of the following is not a type of debt financing
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regular interest payments
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A disadvantage of debt financing is
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paid back in one year
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Short-term debt is
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common stock
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Which of the following is a type of equity financing
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commercial banks
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The most common source of debt financing is
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regular interest payments
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Advantages of debt financing include all of the following except
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start-up capital and funding for purchase of property or equipment
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Long-term debt is used for
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What price is the price of your product
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When securing a bank loan an entrepreneur should be prepared to ANS which of the following questions except
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Security and Exchange Commission
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SEC stands for the
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size of the company's capital amount
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When going public with public offerings an advantage might be
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Small Business Investment Co.
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SBIC stands for the
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not a loan but a form of stock
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Equity capital is
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a product prototype
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Evaluation of new-venture proposals includes what processes except
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liquidity
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One of the advantages of public offerings is
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form 4-V
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Which of these forms are not required by SEC
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placements in excess of $10 million
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The SEC regulation D exemptions include all of the following except
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make it easier and less expensive for small ventures to sell stock
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The main objective of regulation D is to
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What exact date will you repay the money?
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Which of the following is not one of the most common questions typically required to be answered by entrepreneurs
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public stock offerings
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Equity capital is often raised through
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the capital structure of the company
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When going public some specific detailed information that must be presented includes
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rule 503
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Regulation D defines three separate exemptions that are based on the amount of money being raised. Which is not a rule that accompanies these exemptions
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institutional investors
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Regulation D replaces the term "sophisticated investor" with the term "accredited purchaser" Included in this second category is/are
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management consulting
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Venture capitalists are experienced professionals who provide a full range of service for new ventures including
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in 1994 VC firms invested 20.9 billion dollars
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Which of the following statements is true of the recent developments in the venture capital market
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funds are less specialized and more homogenous
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There are four major trends in the venture capital field today. They include all of the following except
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They are more interested in trying to manage the firm themselves than in as or products
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Which of the following statements is not true about venture capitalists
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the characteristics of the product or service
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Criteria that venture capitalists use in evaluating new venture proposals include
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the size of the proposal and financial projection
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Venture proposals are often rejected due to significant deficiencies in
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evaluation of the business plan
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Which is not a stage of the evaluation process
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Is the person someone with whom the entrepreneur can work?
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Which is an important question for the entrepreneur to ask when evaluating the venture capitalist
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an unlimited number of
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The entrepreneur should ask the venture capitalist _____ questions
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What is it like to work with his firm?
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Which id one of the seven most important questions for entrepreneurs regarding venture capitalists
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the entrepreneur's age
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Criteria for evaluating new-venture proposals include all of the following except
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it often takes a great deal of time
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Which of the following is a true statement about raising capital
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500,000
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How many people in America have net worth in excess of $1 million
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200,000
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If 40 percent of the individuals with a net worth in excess of $1 million were interested in venture financing, how many millionaires would be available
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a business angel
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An informal risk capitalist is referred to as
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a network of friends
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Informal investors find projects through
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5 %
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What percentage of "angel capital" is devoted to seed a startup venture versus growth financing
