Raising Money and Financials

A bank loan is what form of financing?

• Equity

• Debt

• Crowdfunding

• Venture Capital

Selling shares of stock in your company is what form of financing?

• Debt

• Equity

• Crowdfunding

• Crowdfunding

Crowdfunding is characterized by:

• A small number of investors contributing large amounts of money

• A large number of investors contributing small amounts of money

• A major bank investing

• A pension fund investing

The income statement shows:

• Revenue, expenses, and profit

• Assets, liabilities, and equity

• Cash flow from financing

• Debt repayment streams

When a venture capitalist offers an entrepreneur $100,000 for shares representing 20% of a company, it is a form of:

• Bank loan

• Debt financing

• Crowdfunding

• Equity financing

The "balance sheet" shows

• Amortization tables

• Revenue, expenses, and profit

• Assets, liabilities, and equity

• Payroll taxes

A charge that is a percentage of the loan amount, usually payable monthly, is called

• Liability

• Debenture

• Balance

• Interest

A secured loan is:

• Backed by collateral

• Not required to be paid back

• Protected from ever defaulting

• Guaranteed by the government

Lenders generally prefer a debt to equity ratio that is:

• High

  (ex- 10:1)

• Low

  (Ex- 1:1)

• Equal to 10

• Around 5

A share of stock represents:

• A promise to pay the company fixed monthly amounts

• An option to purchase part of the company

• The right to be repaid a fixed dollar amount

• A portion of ownership in the company