ENTREPRENEURIAL FINANCE EXAM PREP
QUESTIONS AND ANSWERS FULLY VERIFIED
◉ startup stage.
Answer: period when the venture is organized and developed and an
initial revenue model is put in place
◉ survival stage.
Answer: period when revenues start to grow and help pay some, but
typically not all, of the expenses
◉ rapid-growth stage.
Answer: period of very rapid revenue and cash flow
◉ early-maturity stage.
Answer: period when the growth of revenue and cash flow continues
but at a much slower rate than in the rapid-growth stage
◉ seed financing.
Answer: funds needed to determine whether an idea can be
converted into a visible oppurtunity
,◉ startup financing.
Answer: funds need to take venture from having established a viable
business opportunity to initial production and sales
◉ venture capital.
Answer: early-stage financial capital often involving substantial risk
of total loss
◉ business angels.
Answer: wealthy individuals operating as informal or private
investors who provide venture financing for small businesses
◉ venture capitalists (VCs).
Answer: individuals who join in formal, organized firms to raise and
distribute venture capital to new and fast-growing ventures
◉ venture capital firms.
Answer: firms formed to raise and distribute venture capital to new
and fast growing ventures
◉ first-round financing.
Answer: equity funds provided during the survival stage to cover the
cash shortfall when expenses and investments exceed revenues
, ◉ trade credit.
Answer: financing provided by suppliers in the form of delayed
payments due on purchases made by the venture
◉ government assistance programs.
Answer: financial support, such as low-interest-rate loans and tax
incentives, provided by state and local governments to help small
businesses.
◉ commercial banks.
Answer: financial intermediaries that take deposits and make
business and personal loans
◉ second-round financing.
Answer: financing for ventures in their rapid-growth stage to
support investments in working capital
◉ mezzanine financing.
Answer: funds for plant expansion, marketing expenditures, working
capital, and product or service improvements
◉ warrants.
QUESTIONS AND ANSWERS FULLY VERIFIED
◉ startup stage.
Answer: period when the venture is organized and developed and an
initial revenue model is put in place
◉ survival stage.
Answer: period when revenues start to grow and help pay some, but
typically not all, of the expenses
◉ rapid-growth stage.
Answer: period of very rapid revenue and cash flow
◉ early-maturity stage.
Answer: period when the growth of revenue and cash flow continues
but at a much slower rate than in the rapid-growth stage
◉ seed financing.
Answer: funds needed to determine whether an idea can be
converted into a visible oppurtunity
,◉ startup financing.
Answer: funds need to take venture from having established a viable
business opportunity to initial production and sales
◉ venture capital.
Answer: early-stage financial capital often involving substantial risk
of total loss
◉ business angels.
Answer: wealthy individuals operating as informal or private
investors who provide venture financing for small businesses
◉ venture capitalists (VCs).
Answer: individuals who join in formal, organized firms to raise and
distribute venture capital to new and fast-growing ventures
◉ venture capital firms.
Answer: firms formed to raise and distribute venture capital to new
and fast growing ventures
◉ first-round financing.
Answer: equity funds provided during the survival stage to cover the
cash shortfall when expenses and investments exceed revenues
, ◉ trade credit.
Answer: financing provided by suppliers in the form of delayed
payments due on purchases made by the venture
◉ government assistance programs.
Answer: financial support, such as low-interest-rate loans and tax
incentives, provided by state and local governments to help small
businesses.
◉ commercial banks.
Answer: financial intermediaries that take deposits and make
business and personal loans
◉ second-round financing.
Answer: financing for ventures in their rapid-growth stage to
support investments in working capital
◉ mezzanine financing.
Answer: funds for plant expansion, marketing expenditures, working
capital, and product or service improvements
◉ warrants.
