Lesson 5 & 6 Quiz_Entrepreneurial Management

________________________ is a financing tool for companies and an investment vehicle for institutional investors and wealthy individuals.

• Equity Securities

• Debt Securities

• Hybrid Securities

• Venture Capital

________________________ are debt securities issued by corporations. Interest is generally paid semi-annually.

• Equity Securities

• Corporate Bonds

• Municipal Bonds

• Venture Capital

________________________ are issued by states or municipalities to fund projects or borrow money to meet general obligations.

• Equity Securities

• Corporate Bonds

• Municipal Bonds

• Venture Capital

Large, financially secure corporations finance their short term obligations by selling _________________, a short-term promissory note.

• Commercial Paper

• Corporate Bonds

• Municipal Bonds

• Venture Capital

_______________________ is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange.

• Commercial Paper

• Corporate Bonds

• Municipal Bonds

• Financial Institution

Some products are under development for years before they generate earnings. The up-front costs often exceed a firms ability to fund this activities on its own.

• Lengthy Product Development Cycle

• Cash Flow Challenges

• Capital Investment

• Finance

Inventory must be purchased, employees must be paid for before cash is generated from sales.

• Lengthy Product Development Cycle

• Cash Flow Challenges

• Capital Investment

• Finance

The cost of buying real estate, building, facilities and purchasing equipment typically exceeds a firms ability to provide funds for this needs on its own.

• Lengthy Product Development Cycle

• Cash Flow Challenges

• Capital Investment

• Finance

_______________ is one of the very subtle sectors of a business that can make or break entrepreneurs.

• Lengthy Product Development Cycle

• Cash Flow Challenges

• Capital Investment

• Finance

These money transactions are necessary to keep a business going. But without a proper system in place, they can be a great source of problems, particularly legal issues.

• Cash Flow Management

• Cash Flow Challenges

• Capital Investment

• Finance