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Frugality is deemed a bootstrapping technique.

t

The most common sources of debt financing are commercial banks.

t

Venture capitalists need only basic summary information before they make funding decisions.

f

Venture capitalists, surprisingly, require little information before they make an investment.

f

A potential danger of social lending is the implication that social loans may be viewed as gifts and taxed accordingly.

t

History and nature of the company, capital structure, and description of any material contracts are just a few examples of the specific detailed information that must be presented about a firm that is going public.

t

Informal risk capitalists are often referred to as "business angels."

t

Social lending sites are different from so-called microlending sites.

t

Venture capitalists are a valuable source of equity funding for new ventures.

t

Informal risk capitalists are those who have already made their money and now seek to help new ventures.

t

One of the most frequently used criterion in evaluating new ventures, is the ability of the entrepreneur to sustain intense effort.

t

Private placement is a method of raising capital through the private placement of securities.

t

Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early- and late-stage ventures.

t

Sources of debt financing include trade credit, accounts receivables, factoring, and finance companies.

t

Venture capitalists are slow to invest.

t

Because the advantages of going public outweigh the disadvantages, it is in a corporation's best interest to go public.

f

Entrepreneurs are rarely able to set up a business without investment funds or bank loans.

f

Equity financing is money invested in the venture with legal obligations to repay the principal amount of interest or interest rate on it.

f

Most venture capital funds later stages of venture development, not the start-up (or seed) stage.

f

Public offering is a term used to refer to corporations taking public donations to raise capital.

f

The average size of a social loan is around $7,000.

t

The business plan is a critical element in a new-venture proposal.

t

Use of debt to finance a new venture involves a payback of funds plus an interest fee for the use of the money.

t

There is no way for the venture capitalist adequately to evaluate a new venture.

f

There is only a small number of informal risk capitalists in the market today.

f

Venture capital firms want to own control of the firms in which they invest.

f

Venture capitalists are usually satisfied with a reasonable return on investments.

f

Regulation D augments the regulations for reports and statements required for selling stock to private parties, friends, employees, customers, relatives, local professionals.

f

The venture capital pool is rapidly declining due to over funding .

f

Venture capitalists are quick to invest.

f


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