4.10 Quiz: Financing a Business Part 2
Which is an advantage of equity financing over debt financing?
It's possible to raise more money than a loan can usually provide.
Which is one disadvantage for a company that goes public?
The company faces more government regulations.
Which helps explain why Google's IPO was successful while 800.com's was not?
The timing of Google's IPO was much better as investor confidence was higher.
Which factor would be most likely to lead to an unsuccessful IPO ?
a history of debt
Which enterprise would be most likely to attract a venture capitalist?
a one-year-old e-commerce company
Which best describes the purpose of angel capital?
fund companies at the startup stage of development
Which does seed capital pay for?
funding for research and development of a business idea
Which best describes the purpose of an initial public offering (IPO)?
raise money to fund a company's activities
Which is an example of equity financing?
selling ownership in the company
What does a company do during the IPO stage?
sells stock to the public
