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GB 370 Unit 5 Test Questions and Answers with
Solutions UPDATED!!!
Capital - ANSWER Money to start your business and buy things
you need
Credit is... - ANSWER Everywhere
- buy something, credit comes from the vendor
- sell something, frequently giving credit to the customer.
What is step one of the process? - ANSWER PLAN
- In order to raise money, you need to know much money you
need.
- Create a 12 month budget, be aware of what you can change
from month to month.
- Go light and borrow --> Rent
Concept (Levels of Money) - ANSWER Small amount; Yourself,
family, friends
Medium (Levels of Money) - ANSWER Medium; Banks, Angels
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Scale Massively (Levels of Money) - ANSWER Large;VC, Crowd
Equity
The second most popular source for startup money is
composed of? - ANSWER Friends, relatives, and business
associates
1. first find the right person to borrow money from (don't enlist
those with ulterior motives)
2. Then approach in an INFORMAL situation to gauge their
interest in your business.
3. if interested, follow up FORMALLY with business plan and
sales presentation.
(BE PREPARED TO ACCEPT REJECTION)
this can come from various sources, including venture capital
firms and private investors - ANSWER equity finances
You never have to pay back equity. True or False? - ANSWER
True
GB 370 Unit 5 Test Questions and Answers with
Solutions UPDATED!!!
Capital - ANSWER Money to start your business and buy things
you need
Credit is... - ANSWER Everywhere
- buy something, credit comes from the vendor
- sell something, frequently giving credit to the customer.
What is step one of the process? - ANSWER PLAN
- In order to raise money, you need to know much money you
need.
- Create a 12 month budget, be aware of what you can change
from month to month.
- Go light and borrow --> Rent
Concept (Levels of Money) - ANSWER Small amount; Yourself,
family, friends
Medium (Levels of Money) - ANSWER Medium; Banks, Angels
, 2|Page
Scale Massively (Levels of Money) - ANSWER Large;VC, Crowd
Equity
The second most popular source for startup money is
composed of? - ANSWER Friends, relatives, and business
associates
1. first find the right person to borrow money from (don't enlist
those with ulterior motives)
2. Then approach in an INFORMAL situation to gauge their
interest in your business.
3. if interested, follow up FORMALLY with business plan and
sales presentation.
(BE PREPARED TO ACCEPT REJECTION)
this can come from various sources, including venture capital
firms and private investors - ANSWER equity finances
You never have to pay back equity. True or False? - ANSWER
True
