HUM211 Q#2

1. Tech Startup Seeking Early-Stage Support

A recent college graduate has developed a prototype for an innovative mobile app. Lacking business experience and additional resources, they are looking for not just funding but also mentorship, office space, and networking opportunities to refine their product and business model.

Which type of investment is suitable for this startup?

• FFF

• Incubator

• VC

• Bootstrapping

2. Established Company Aiming for Rapid Expansion

A biotechnology company has successfully navigated the initial stages and now has a promising product ready for market. To scale production and enter international markets quickly, they require a substantial amount of capital and strategic industry connections.

Which type of investment is suitable for this company?

• FFF

• Incubator

• VC

• Angle Investors

• Bootstrapping

3. Entrepreneur Starting with Personal Resources

An individual plans to open a small boutique and prefers to maintain full control over the business. They decide to use their personal savings and reinvest any profits back into the business, avoiding external funding sources.

Which type of investment is suitable for this entrepreneur?

• FFF

• Incubators

• VC

• Angle Investors

• Bootstrapping

4. Innovator Needing Seed Capital

An entrepreneur with a groundbreaking idea in renewable energy needs initial funding to develop a prototype. They are willing to offer equity in exchange for capital but prefer investors who can also provide industry expertise and mentorship.

Which type of investment is suitable for this innovator?

• FFF

• Incubators

• VC

• Angle Investors

• Private Equity

5. Small Business Owner Turning to Personal Network

A budding restaurateur needs a modest amount of capital to cover startup costs like equipment and initial inventory. They decide to approach close friends and family members who might be interested in investing or lending money.

Which type of investment is suitable for this business owner?

• FFF

• Incubators

• VC

• Angle Investors

• Bootstrapping

6. Mature Company Looking to Restructure

A well-established manufacturing firm is facing financial difficulties and needs significant capital to restructure its operations. The company is willing to give up a substantial equity stake and control to investors who can provide not just funding but also expertise in turning around companies.

Which type of investment is suitable for this company?

• Limited Partnership

• Incubators

• VC

• Angle Investors

• Private equity

7. Partners Seeking Liquidity for Ownership Stakes

Two partners in a successful software company wish to partially cash out their ownership stakes without giving up complete control of the business. They are seeking investors who can provide capital in exchange for equity, allowing the partners to realize some of their investment while maintaining the company's operations.

Which type of investment is suitable for this situation?

• Incubators

• VC

• Angle Investors

• Private Equity

• Limited Partnership

8. Real Estate Development Project

An experienced real estate developer plans to build a large commercial property. The project requires substantial long-term investment, and they are looking for investors willing to commit capital in exchange for a share of the profits once the property is sold or generates rental income.

Which type of investment is suitable for this project?

• VC

• Angel Investors

• Bootstrapping

• Limited Partnership

• Private Equity

9. The primary purpose of a feasibility analysis is to:

•  Establish a legal business entity.

•  Develop detailed marketing strategies

• Determine if a business idea is viable.

•  Raise capital from investors.

 A business model describes how a company: Structures its internal hierarchy.

•  Structures its internal hierarchy.

•  Creates, delivers, and captures value.

•  Implements its marketing plan.

• Prepares financial statements.