Everfi Startup to IPO Post-Assessment

Which of the following steps is NOT involved in going public?

?

Imagine you own a successful startup company that's been doing well for several years. You think you can grow your company if you had more industry connections. What method of financing would be best for your company at this stage?

???

What is an entrepreneur?

A person who starts a new business and assumes all the risks and rewards of running it

Which of the following is an advantage of going public?

Ability to track many investors

Imagine you've used your own money to develop your business idea. Now you need more funding to keep growing. Which financing method would be available to you at this stage?

Angel Investing

Which of these situations are more likely to happen in a GOOD economy?

Carlos was able to finish a design bootcamp and interview at many companies until he finds the job he likes best

Which of the following statements about the IPO process is FALSE?

Companies must seek out private investors for the company

Companies already on the stock market get to choose the price of their stocks.

False

When a company "goes public," only a small amount of investors are allowed to invest in the company.

False

Which of the following behaviors are more likely to happen in a BAD economy?

Fresh Mart, a local grocery store, had to lay off employees to keep costs down

Which of the following statements about GDP (gross domestic product) is TRUE?

GDP measures the total value of all the finished goods and services produced in a country over a certain period of time

What is contractionary policy used for?

NOT To stimulate growth in the economy

If an entrepreneur says they are using "bootstrap financing," what are they referring to?

They used their own money to start their business

Why might the government and Central Bank use policy to manage the economy?

To avoid a depression in the economy

Even if the economy is declining, the financial market can still do well.

True

Steadily increasing inflation is associated with a growing economy.

True

The price of company stocks already trading on the stock market are determined by supply and demand.

True

Which of the following statements about monetary policy is TRUE?

NOT All of the above A) Monetary policy is set by the government B) Monetary policy adjusts the amount of money and credit available in the economy C) Monetary policy adjusts the amount of government spending in the economy

What method of financing do entrepreneurs often use when they are first developing their business idea?

Bootstrapping

Which of the following are disadvantages of going public?

Both A) Giving up some ownership and B) Need to meet expensive legal requirements

What are some common traits good entrepreneurs have?

Both A) They take calculated risks and B) They try to solve problems by using new products and processes

Which of the following statements about equity financing is FALSE?

Companies often have to pay interest when they use equity financing.

The ____ phase in the business cycle is a period when the level of business activity declines and GDP falls.

Contraction

A(n) _________ is a person who starts a new business and assumes all the risks and rewards of running the business.

Entrepreneur

In finance, the acronym IPO stands for:

Initial Public Offering

When a private company wants to offer stock on the stock market, they go through the _______ process.

Initial Public Offering

When a startup wants to offer stock on the stock market, they go from a private to a public company.

True

In order to implement expansionary policy, the government and Central Bank must ______ government spending, ______ taxes, and ______ interest rates.

increase, decrease, decrease