SPMA 4P10 test Questions with Correct Solutions| Latest Update Graded A+
Unsecured loans loan is based solely on the borrower's creditworthiness and promise to
repay
Debenture debt that is backed by general credit rather than by specified assets
Loans from friends and family (FFF) easy and fast
borrowing costs are minimal
terms favourable
slack when you need it
support network
know you
less convincing needed
however:
relational risk
may not be savvy
blurred lines
panel of critics
Angels vs Venture Capitalists angels tend to invest lower amounts earlier
VCs invest more money (and require more equity) later
also tend to help out with other business needs
Unique Sources of Capital/Finance bootstrapping
- the founders use their own savings, investments, resources, and earnings to finance their
business
, mezzanine financing
- between debt and equity financing
- it is senior to pure equity but subordinate to pure debt
- no mandatory payments
royalty financing
- investor earns money per unit sold until paid off
- payments proportional of success
crowdfunding
- raising money from a large number of people contributing a small amount, typically online (eg.
Kickstarter)
Forecasting: judgemental methods subjective
opinion-based
Forecasting: statistical methods objective
mathematical-based
Purpose of Marketing marketing's principle function is to promote and facilitate exchange
the sum of activities involved in directing the flow of goods and services from producers to
consumers
connecting businesses to their customers
4 P's of Marketing product
price
place
promotion
Unsecured loans loan is based solely on the borrower's creditworthiness and promise to
repay
Debenture debt that is backed by general credit rather than by specified assets
Loans from friends and family (FFF) easy and fast
borrowing costs are minimal
terms favourable
slack when you need it
support network
know you
less convincing needed
however:
relational risk
may not be savvy
blurred lines
panel of critics
Angels vs Venture Capitalists angels tend to invest lower amounts earlier
VCs invest more money (and require more equity) later
also tend to help out with other business needs
Unique Sources of Capital/Finance bootstrapping
- the founders use their own savings, investments, resources, and earnings to finance their
business
, mezzanine financing
- between debt and equity financing
- it is senior to pure equity but subordinate to pure debt
- no mandatory payments
royalty financing
- investor earns money per unit sold until paid off
- payments proportional of success
crowdfunding
- raising money from a large number of people contributing a small amount, typically online (eg.
Kickstarter)
Forecasting: judgemental methods subjective
opinion-based
Forecasting: statistical methods objective
mathematical-based
Purpose of Marketing marketing's principle function is to promote and facilitate exchange
the sum of activities involved in directing the flow of goods and services from producers to
consumers
connecting businesses to their customers
4 P's of Marketing product
price
place
promotion
