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?