Quiz 4 - chapters 7-8
When buying a small business you need to know all of the following items except
owner's family stability and relationships.
Which of the following is not a type of debt financing?
private placement
A disadvantage of debt financing is
regular interest payments
When going public with public offerings an advantage might be the
size of the company's capital amount
Which of the following is not a major rend that has occurred in venture capital over the last few years?
stronger small start-up investments
According to the text, which of the following could be considered a "deal killer" by a venture capitalist?
the excessive founder salaries
Which of the following individuals must negotiate a final deal to purchase a business?
the potential buyer
Long-term debt is used for
the purchase of property or equipment.
Which of the following is not a disadvantage of a major franchise?
track record of the franchisor
Which of the following would be most commonly used for short-term financing?
trade credit
Which of the following is not a key question a prospective buyer needs to ask in buying a business?
What is the owner's personal net worth?
Bussiness-related resasons for selling do not include which of the following?
business has kept careful records
The most common source of debt financing is
commercial banks
Which of the following costs add to the cost of franchiseing pertaining to principal and interest payments?
debt services
Which of the following is not a start-up expense?
depreciation
The franchisee's responsibilities do not include
designing the product specifics.
Financing includes all of the following except
equitable payback
Which of the following is a source of capital for entrepreneurs?
equity
The extra value a business can command in sale is known as
goodwill.
Venture capital in the United Statees has been highest in which of the following?
health care
One of the advantages of public offerings is
image
Short-term debt is paid back
in one year
When starting a business, which of the following sources of financing is least likely to be used?
insurance companies
The main objective of Regulation D is to
make it easier and less expensive for small ventures to sell stock
venture capitalist are experienced professionals who provide a full range of services for new ventures including
management consulting
Informal investors find projects to invest in through
networks of friends
A(n) _____ approach indicated the importance of people's awareness of their daily lives for developing new business ideas.
new-new
The _____ approach indicated the importance of people's awareness of their daily lives for developing new business ideas.
new-new
Business-related reasons for selling may include all of the following except
changes in location
The individual who arranges for a dealer to handle a specific product or service under certain mutually agreed-upon conditions is known as the
franchisor
Equity capital is
not a loan but a form of stock
Which of the following is not typically identified as bootstrapping technique?
hiring seasoned venterans
Coming up with a unique good or service is a ____ approach, while adapting something that is currently on the market or extending the offering to an area where it is not presently available is a(n) ____ approach.
new-new; new-old
Which of the following in not a key question to ask when buying a business?
Is the building heated with gas or electricity?
_____ is one of the disadvantages of going public
Shareholder pressure
Which of the following is not onw of the most common questions typically required to be answered by entrepreneurs seeking funding?
What exact date will you repay the money?
An additional consideration to keep in mind when negotiating to purchase an existing business includes requesting that the seller retain ____ in the firm
a minority interest
_____ bank loans are made on a discounted value of the recivable pledge.
Accounts recievable financing
What is the purpose of a non-compete agreement
Allows new owner to retain business customers
The person who purchases the franchise is usually required to do all of the following except
Design a logo for the unit
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?
When should a potential franchisee receive the Franchise Disclosure Document (FDD)?
at least 10 days before signing a contract or paying any money
Which of the following is not currently cited as a trend creating business opportunities?
breakfast cereals
an organization that offers a range of support services and funding opportunities for new ventures is called a(n)
business accelerator
Which of the following is more likely than the others to be deemed a potential danger of social lending?
business plan disclosure