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WorksheetsStartup Funding
Total questions: 11
Worksheet time: 6mins
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
What type of funding does not need to be paid back?
Loans
Grants
Incubators
Venture capitalist
