Entrepreneurship Finance Review

What is the number one source of start-up funding for entrepreneurs?

• personal savings

• venture capital

• crowdfunding

• initial public offering (IPO)

What is the term used to describe a business that operates as frugally (lean) as possible?

• expensive

• entrepreneurship

• investing

• bootstrapping

A business practicing bootstrapping will NOT:

• hire unnecessary employees

• lease equipment

• operate from a home garage

• seek help from friends and family

Which type of financing raises cash for the business in exchange for an ownership stake in the business?

• equity financing

• debt financing

• bootstrapping

• pro forma

What is another name for equity financing?

• risk capital

• debt capital

• sure fire capital

• pro forma

Which of the following is NOT a source of EQUITY financing?

• angel investor

• venture capital

• bank loan

• uncle invests for a 20% stake

What do you call a former entrepreneur who invests in new start-ups to help out entrepreneurs?

• venture capitalist

• shark

• angel investor

• commercial finance company

Net profit is the same as

• net income

• gross profit

• total expenses

• COGS

The amount per unit that a product contributes toward the company's profitability is known as

• unit of sale

• EOU

• economy of scale

• contribution margin

Which one best illustrates a fixed expense?

• insurance

• materials

• labor

• shipping stickers