MGT 241 Ball State Ch 13 Quiz

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

In a typical​ year, small businesses borrow​ about:

$1 trillion

​_________ are programs that often are sponsored by universities or communities that provide select business​ start-ups a small amount of seed capital and a wealth of additional​ support, such as a work​ space, access to office​ equipment, mentors, and others.

Accelerators

The average angel investment in a small company is​ ______, while the average venture capital​ firm's investment in a small company is​ ______.

​$350,000; $7.4 million

The typical venture capital firm receives about​ _____ business plans each year and invests in​ ____ of them.

​1,200; 1

Angel investors are most likely to finance​ start-ups with capital requirements in the​ _______ range.

$10,000 to​ $2 million

According to the Global Entrepreneurship​ Monitor, entrepreneurs need on average​ ________ to start their businesses.

$15,000

Since​ 2001, the average number of companies that make initial public offerings in the United States​ is:

120

​Traditionally, about what percentage of venture capital investments go to companies in the​ start-up and seed​ phases?

2

About​ _____ percent of Small Business​ Administration-backed loans go to​ start-up companies.

30%

The average corporate venture capital investment in a small company​ is:

4.5 million

Small and midsize banks approve​ ___ percent of small business loan​ requests; large banks approve​ ___ percent of small business loan requests.

45; 10

What percentage of angel​ investors' investments in businesses lose​ money, returning less than the​ angels' original​ investment?

52 percent

About​ _____ percent of new businesses rely on credit cards to finance operations in their first year of business.

58

Which loan program is the Small Business​ Administration's flagship loan program that involves more than​ 3,500 private lenders across the United States that make loans to small​ companies?

7(a) loan guaranty; The​ 7(a) loan guaranty program accounts for about 75 percent of the​ SBA's loan activity.

According to the Global Entrepreneurship​ Monitor, entrepreneurs in the United States rely on personal savings for​ ___ percent of their​ start-up companies' total funding.

73

​________ invest​ $24.8 billion annually in more than small​ 70,000 companies, making them the largest and most important source of external equity capital for small businesses.

Angels

Which of the following statements about angel investors is false​?

Angels accept about 55 percent of the deals pitched to them.

What is the most common source of funds entrepreneurs use to start their​ businesses?

personal savings

Which method of financing involves entrepreneurs tapping the power of the Internet through sites such as​ Kickstarter, Rock the​ Post, IndieGoGo, and​ others, to post their elevator pitches and raise up to​ $1 million per year from ordinary​ people, who invest as little as​ $100?

crowdfunding

After investing her own​ money, Annie Pratt needed​ $25,000 to start a small gourmet ice cream shop and approached her parents for a loan. Annie agreed to repay the loan with interest in 60 monthly installments beginning one year from the day she opened her shop. Her parents agreed and provided Annie the​ start-up capital she needed. What type of capital did Annie get from her​ parents?

debt capital

Not​ surprisingly, the most common source of capital for existing small businesses is earnings from the business. What is the next most common source of capital for existing small​ businesses?

Commercial bank loans

Which source of debt financing is the heart of the debt capital market for small​ businesses, providing the greatest number and variety of loans to small​ companies?

Commercial banks

Nearly​ 1,000 communities across the United States have created​ ____________ that designate a portion of their loan portfolios to supporting entrepreneurs and small businesses to provide capital to otherwise​ "unbankable" business owners and aspiring entrepreneurs.

Community Development Financial Institutions

The​ _________ program covers 11 federal agencies that award cash grants or​ long-term contracts to small businesses that develop inventive products and services across three phases.

Small Business Innovation Research, SBIR

Which of the following statements about financing a business is false​?

The money simply is not out​ there; entrepreneurs must rely on their own capital to start businesses today.

Which of the following statements about initial public offerings​ (IPOs) is false​?

The number of companies with less than​ $25 million in annual sales that make IPOs has increased since 2001.

After investing her own​ money, Annie Pratt needed​ $25,000 to start a small gourmet ice cream shop and approached her parents for the money. Instead of asking for a​ loan, however, Annie asks her parents to become investors in her business. They agree and invest​ $25,000 in​ Annie's start-up business. What type of capital did Annie get from her​ parents?

equity capital

Alicia Stone owns a small hardware store and extends credit to many of her customers. To finance the purchase of some​ much-needed equipment for her​ business, Alicia sells her​ company's accounts receivable to generate immediate cash. Alicia is​ using:

factoring

Lake Murray Marine is a boat dealership located on a lake near a sizeable metropolitan area. Which of the following types of loans would be most appropriate for Lake Murray Marine to finance its inventory of​ boats?

floor planning

The interest rates that small businesses pay on loans​ are:

higher than the rates that big businesses pay because of the higher risk associated with making loans to small companies.

​________ loans have a preset limit and allow a small business to borrow any amount up to that ceiling at any time.

line of credit


संबंधित स्टडी सेट्स

Treasury Management Quiz Questions

View Set

The Social Costs of Resource Use

View Set