Entrepreneurial problem solving Ch. 5,6,7,8

False

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

an unlimited number of

the entrepreneur should ask the venture capitalist _____________ questions

true

use of debt to finance a new venture involving a payback of funds plus an interest fee for the use of the money. T/F

regular interest payments

advantages of debt financing include all of the following except

franchise

A ___________ is a system of distribution that enables a supplier to arrange for a dealer to handle a specific product or service under certain mutually agreed upon conditions.

Regular interest payments

A disadvantage of debt financing is:

How many personnel are going to remain?

A key question to ask when buying an on-going small business is which of the following?

liquidity

once of the advantages of public offerings is

banking 2.0

which of the following terms is not synonymous with social lending?

False

The Federal Trade Commission does not provide information on franchise success. T/F

Commercial banks

The most common source of debt financing is

legal restraint of trade

An agreement not to compete is also known as

Business angel

An informal risk capitalist is referred to as:

False

Because the advantages of going public outweigh the disadvantages, it is in a corporations best interest to go public. T/F

True

In negotiating a deal to purchase an existing business, it is possible to request that the seller retain a minority interest in the firm. T/F

They are interesting in trying to manage firms themselves

which of the following statements is not true of venture capitalists

amateur angels

which of the following does not represent a category of angel investors

False

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

True

The Franchise Disclosure (FDD) is a legally required disclosure document that must be presented to potential franchisees during pre-sale discussions. T/F

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

The main objective of Regulation D is to

Private placement

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

False

Franchisees have the option of using the logo and symbols of the franchisor. T/F

True

Informal risk capitalists are often referred to as "business angles." T/F

True

Sophisticated investors are wealthy individuals who invest more or less regularly in new and/or early an late stage venture. T/F

True

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

all of these.

The advantage of franchising include:

True

The elimination of time and effort associated with starting a company is an advantage of acquiring an ongoing venture. T/F

franchisee

The individual who buys the franchise is the

all of these

The inventory should be examined for which of the following?

True

Uniqueness in a product or service can be demonstrated through a new-new approach or a new-old approach. T/F

False

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

new-new

When one designs a unique good or service, the individual is said to have used a(n)_______- approach to starting the business.

True

When purchasing an existing business, the prospective owner should conduct an assessment of the business's current group of employees. T/F

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

When should a potential franchisee receive the FDD(franchise disclosure document)?

is the building heated with gas or electricity?

Which is not a key question to ask when buying a business?

is the person someone with whom the entrepreneur can work?

Which is an important question for the entrepreneur to ask when evaluating the venture capitalist?

what is it like to work with their firm?

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

Common stock

Which of the following is a type of equity financing?

a minority interest

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

all of these.

An advantage to buying an ongoing business is?

True

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

A less specialized and more homogenous gunds

Major trends in the venture capital field today include all of the following except

True

Perhaps the greatest advantage of buying a franchise, as compared to starting a new business or buying an existing one, is that the franchisor will usually provide both training and guidance to the franchise. T/F

True

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

pay a fee

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

True

The prospective investor should get as much information as possible on the franchisor. T/F

True

The terms upside gain and downside loss refers to the profits the business can make the losses it can suffer. T/F

goodwill

Which of the following is an intangible asset?

What is the owners personal net worth?

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

The potential buyer

Who must negotiate a final deal to purchase a business?