Startup Funding

When an entrepreneur takes out loans to finance their business, this is called...

• equity financing

• bootstrapping

• debt financing

• preferred stock

Please select the term below that best describes the following financing scenario:

A bank approves a business for $10,000 maximum amount revolving credit. When the business wants to purchase something, they use this credit to do so. As long as they don't exceed this maximum, they don't need to notify the bank. Once purchased, the amount must be paid back with a high rate of interest, either monthly or all at once.

• installment loan

• Vehicle loan

• Credit Card

• Debit card

What does an SBA loan guarantee do?

• Same as a letter of recommendation

• Arranges for you to not have to file financial statements for your loan

• Means your loan does not have to be repaid

• Allows a bank to have confidence that a loan given to your business will be repaid

The 5C of collateral means:

• You have pledged assets from the business to secure the loan

• The bank can take your house if loan unpaid

• The bank knows that you have the ability to repay

• The bank knows you have a good reputation

A venture capitalist or an Angel investor is hoping to make money from their investment when your privately held company decides to go ___________________, which means that shares of ownership are sold on an exchange

• public

• international

• warrants

• options

A FICO score above 750 is considered

• Excellent

• Good

• Fair

• Bad

How many assets and liabilities your business has is known as which 5 C?

• Character

• Capacity

• Capital

• Collateral

The 3 broad categories of sources of business funding are:

• Bootstrapping, Debt, and Equity

• Private funds, Bank loans, and issuing stock

• Grants, contests, and venture capitalists

• Personal resources, crowdfunding, and incubators

What is using social media to attract a large number of small investors to your business?

• Crowdsurfing

• Crowdsourcing

• Crowdfunding

• Couchsurfing

All of the following are credit reporting agencies EXCEPT:

• Experian

• Ernst and Young

• Equifax

• TransUnion