CH 8 440
Which of the following is not a stage of the evaluation process?
beta-testing
Which of the following is more likely than the others to be deemed a potential danger of social lending?
business plan disclosure
A good idea is important
but a good management team is even more important., 'True'.
Many new ventures find that debt financing is
necessary.
Equity capital is
not a loan but a form of stock.
Which of the following terms is synonymous with social lending?
peer-to-peer (P2P) lending
A disadvantage of debt financing is
regular interest payments.
Advantages of debt financing include all of the following except
regular interest payments.
Which of the following is not a major trend that has occurred in venture capital over the last few years?
stronger small start-up investments
Which of the following would be most commonly used for short-term financing?
trade credit
Because of how they are structured
traditional industries such as textiles, furniture manufacturing, and clothing manufacturing commonly use which of the following debt financing sources?, factoring
Venture capitalists, surprisingly, require little information before they make an investment.
'False'.
Crowdfunding provides entrepreneurs with access to beta-testing and market feedback.
'True'.
Frugality is deemed a bootstrapping technique.
'True'.
Informal risk capitalists are often referred to as business angels.
'True'.
Informal risk capitalists are those who have already made their money and now seek to help new ventures.
'True'.
P2P lenders charge fees for brokering and servicing loans and collect penalties for late payments.
'True'.
Social lending sites are different from so-called microlending sites.
'True'.
Sophisticated investors are wealthy individuals who invest more or less regularly in new or early- and late-stage ventures.
'True'.
The business plan is a critical element in a new-venture proposal.
'True'.
The most common sources of debt financing are commercial banks.
'True'.
Trade credit is given by suppliers who sell goods on account.
'True'.
According to Forbes , the net worth of the richest _____ Americans was $2.29 trillion ($5.73 billion per person).
400
Which of the following is an important question for the entrepreneur to ask when evaluating the venture capitalist?
How many deals has the firm actually made in this field?
The Regulation D exemptions include all of the following except
Rule 503-placements of less than $500,000.
Which of the following statements is not true of venture capitalists?
They are interested in managing firms themselves.
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?
Which of the following is not typically identified as a bootstrapping technique?
hiring seasoned veterans
Which of the following would be most commonly used for intermediate-term financing?
leasing companies
The main objective of Regulation D is to
make it easier and less expensive for small ventures to sell stock.
