TEST: CH 19 FINANCING YOUR BUSINESS

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

• equity financing

• bootstrapping

• debt financing

• preferred stock

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

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

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

The best way for a government to get out of debt is to print more money?

• True

• False

Inflation makes your money less valuable over time?

• True
• False

Equity shareholders are:

• creditors
• owners
• directors
• none

A bank loan is what form of financing?

• Debt

• Equity