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GB 370 Gentry Exam 2 Questions and Answers with
Solutions UPDATED!!!
disadvantage of the classical decision making model is that it
doesn't use - ANSWER ethics
capital - ANSWER money to start your business and buy things
when you need it
if you ____ something you are basically __________ credit from
the vendor - ANSWER buy, getting
lower interest rates make everything cheaper, because they fuel
____________ - ANSWER inflation
in order to raise money from a new business, create a -
ANSWER 12 month budget plan
credit cards are _________ than other annual ________ lending
- ANSWER cheaper, equity
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3 F's - ANSWER friends, family, and fools; borrowing money
from them is good but do not let this give them the ability to
meddle; get an LLC
Agree to terms - ANSWER to put a loan in motion, state how
much you need, what you'll use for it, and how you'll pay it back
specify before a loan - ANSWER if person will intend to put
money in your business, whether its secured, the covenants
(restrictions) on the loan, outline legal agreements of both
parties, have all in writing
equity - ANSWER dont have to repay
venture capital - ANSWER capital that takes risks in investing in
a new business, what you want but not easy to come by
how to get venture capital? - ANSWER apply to accelerator
program
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angel investors - ANSWER NOT motivated by profit, source of
private capital, referring to anyone who invests their money in
an entrepreneurial company
angel investor characteristics - ANSWER must have $1 million
net worth, "accredited" investor, liquid wealth of $250k,
affiliated angels and nonaffiliated angels
affiliated angels - ANSWER someone who has contact w/ you or
your business but not necessarily related or acquainted w/ you
examples- professionals, business associates, competitors,
angel.co
nonaffiliated angels - ANSWER no connection to you or your
business
examples) professionals, middle managers, entrepreneurs
remember these tips - ANSWER 1. can't post your business plan
online asking for money
2. there are "exchanges" where you can solicit money and
investors sign disclosures
GB 370 Gentry Exam 2 Questions and Answers with
Solutions UPDATED!!!
disadvantage of the classical decision making model is that it
doesn't use - ANSWER ethics
capital - ANSWER money to start your business and buy things
when you need it
if you ____ something you are basically __________ credit from
the vendor - ANSWER buy, getting
lower interest rates make everything cheaper, because they fuel
____________ - ANSWER inflation
in order to raise money from a new business, create a -
ANSWER 12 month budget plan
credit cards are _________ than other annual ________ lending
- ANSWER cheaper, equity
,2|Page
3 F's - ANSWER friends, family, and fools; borrowing money
from them is good but do not let this give them the ability to
meddle; get an LLC
Agree to terms - ANSWER to put a loan in motion, state how
much you need, what you'll use for it, and how you'll pay it back
specify before a loan - ANSWER if person will intend to put
money in your business, whether its secured, the covenants
(restrictions) on the loan, outline legal agreements of both
parties, have all in writing
equity - ANSWER dont have to repay
venture capital - ANSWER capital that takes risks in investing in
a new business, what you want but not easy to come by
how to get venture capital? - ANSWER apply to accelerator
program
, 3|Page
angel investors - ANSWER NOT motivated by profit, source of
private capital, referring to anyone who invests their money in
an entrepreneurial company
angel investor characteristics - ANSWER must have $1 million
net worth, "accredited" investor, liquid wealth of $250k,
affiliated angels and nonaffiliated angels
affiliated angels - ANSWER someone who has contact w/ you or
your business but not necessarily related or acquainted w/ you
examples- professionals, business associates, competitors,
angel.co
nonaffiliated angels - ANSWER no connection to you or your
business
examples) professionals, middle managers, entrepreneurs
remember these tips - ANSWER 1. can't post your business plan
online asking for money
2. there are "exchanges" where you can solicit money and
investors sign disclosures
