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WorksheetsEntrepreneurship
Total questions: 10
Worksheet time: 16mins
many entrepreneurs go about the task of raising capital haphazardly because they ________.
are uncomfortable talking about money and they haven't written a business plan
lack experience in this area and because they don't know much about their choices
are focused on the nuts and bolts of starting their business
are intimidated by the process and they are unsure of how much money they need
The three primary reasons startups need funding are ________.
cash flow challenges, capital investments, and lengthy product development cycles
business research, cash flow challenges, and costs associated with building a brand
bonuses for members of the new venture team, attorney fees, and lengthy product development cycles
attorney fees, capital investments, and marketing research
In startup firms, inventory must be purchased, employees must be trained and paid, and advertising must be paid for before cash is generated from sales. Which of the following reasons that motivate firms to seek funding or financing is illustrated in this example?
Cash flow challenges
Marketing costs
Personnel costs
Lengthy product development cycles
Peter Simmons owns a specialized computer software company. Although Peter's software designers and programmers are very good, it takes 2-3 years to develop a good software product. This example illustrates the need for funding or financing referred to as ________.
personnel costs
marketing costs
costs associated with building a brand
lengthy product development cycles
the seed money that gets a company off the ground typically comes from ________.
angel investors
venture capitalists
commercial banks
the founders of the firm
the second source of funds for many new ventures is ________.
government grants
business angels
friends and family
banks
The first sale of stock by a firm to the public is referred to as a(n) ________.
original public submission
preemptive initial offering
original open offering
initial public offering
________ is a financial transaction whereby a business sells its accounts receivable to a third party at a discount in exchange for cash.
Factoring
Vendor credit
Peer-to-peer lending
Crowdfunding
What is meant by the term "bootstrapping"? Provide several examples of the ways that entrepreneurs bootstrap to raise money or cut costs?
(a)
What is the difference between equity funding and debt financing? What are the most common sources of equity funding and debt financing?
