Quiz 4 - chapters 7-8

When buying a small business you need to know all of the following items except

owner's family stability and relationships.

Which of the following is not a type of debt financing?

private placement

A disadvantage of debt financing is

regular interest payments

When going public with public offerings an advantage might be the

size of the company's capital amount

Which of the following is not a major rend that has occurred in venture capital over the last few years?

stronger small start-up investments

According to the text, which of the following could be considered a "deal killer" by a venture capitalist?

the excessive founder salaries

Which of the following individuals must negotiate a final deal to purchase a business?

the potential buyer

Long-term debt is used for

the purchase of property or equipment.

Which of the following is not a disadvantage of a major franchise?

track record of the franchisor

Which of the following would be most commonly used for short-term financing?

trade credit

Which of the following is not a key question a prospective buyer needs to ask in buying a business?

What is the owner's personal net worth?

Bussiness-related resasons for selling do not include which of the following?

business has kept careful records

The most common source of debt financing is

commercial banks

Which of the following costs add to the cost of franchiseing pertaining to principal and interest payments?

debt services

Which of the following is not a start-up expense?

depreciation

The franchisee's responsibilities do not include

designing the product specifics.

Financing includes all of the following except

equitable payback

Which of the following is a source of capital for entrepreneurs?

equity

The extra value a business can command in sale is known as

goodwill.

Venture capital in the United Statees has been highest in which of the following?

health care

One of the advantages of public offerings is

image

Short-term debt is paid back

in one year

When starting a business, which of the following sources of financing is least likely to be used?

insurance companies

The main objective of Regulation D is to

make it easier and less expensive for small ventures to sell stock

venture capitalist are experienced professionals who provide a full range of services for new ventures including

management consulting

Informal investors find projects to invest in through

networks of friends

A(n) _____ approach indicated the importance of people's awareness of their daily lives for developing new business ideas.

new-new

The _____ approach indicated the importance of people's awareness of their daily lives for developing new business ideas.

new-new

Business-related reasons for selling may include all of the following except

changes in location

The individual who arranges for a dealer to handle a specific product or service under certain mutually agreed-upon conditions is known as the

franchisor

Equity capital is

not a loan but a form of stock

Which of the following is not typically identified as bootstrapping technique?

hiring seasoned venterans

Coming up with a unique good or service is a ____ approach, while adapting something that is currently on the market or extending the offering to an area where it is not presently available is a(n) ____ approach.

new-new; new-old

Which of the following in not a key question to ask when buying a business?

Is the building heated with gas or electricity?

_____ is one of the disadvantages of going public

Shareholder pressure

Which of the following is not onw of the most common questions typically required to be answered by entrepreneurs seeking funding?

What exact date will you repay the money?

An additional consideration to keep in mind when negotiating to purchase an existing business includes requesting that the seller retain ____ in the firm

a minority interest

_____ bank loans are made on a discounted value of the recivable pledge.

Accounts recievable financing

What is the purpose of a non-compete agreement

Allows new owner to retain business customers

The person who purchases the franchise is usually required to do all of the following except

Design a logo for the unit

Which of the following is one of the most important questions for entrepreneurs to ask regarding venture capitalists?

What is it like to work with their firm?

When should a potential franchisee receive the Franchise Disclosure Document (FDD)?

at least 10 days before signing a contract or paying any money

Which of the following is not currently cited as a trend creating business opportunities?

breakfast cereals

an organization that offers a range of support services and funding opportunities for new ventures is called a(n)

business accelerator

Which of the following is more likely than the others to be deemed a potential danger of social lending?

business plan disclosure