MGMT 485 FINAL EXAM 2 WITH COMPLETE
SOLUTIONS A+ GRADED
An asset as collateral - ANSWER Typically, debt financing requires:
Equity - ANSWER ________ financing does not require any collateral
the entrepreneur's personal funds - ANSWER The most frequently used source of funds
for start-ups is:
the entrepreneur's personal resources - ANSWER Funds obtained from ____ are the
least expensive in terms of cost and control.
the amount of money is usually small, they do have an ownership position in the venture.
- ANSWER When using equity financing from family and friends:
commercial bank loans - ANSWER The most frequently used source of short-term funds
when collateral is available is:
"buys" the accounts receivables of a firm - ANSWER In a factoring arrangement, the
factor:
about 50 percent of it can be financed - ANSWER When inventory is the asset base for a
loan:
trust receipt - ANSWER When the bank advances a large percentage of the invoice price
of goods and is paid on a pro-rata basis when inventory is sold this is called:
, sale-leaseback arrangement - ANSWER In ____ the entrepreneur sells equipment to the
lender then arranges for its continued use.
real-estate asset-based financing - ANSWER Mortgage financing is another term for:
Line of credit - ANSWER Which of the following types of credit does not require the
pledging of an individual's collateral or a cosigner?
Caution - ANSWER Which of the following is not one of the five C's of lending?
$5,000,000 - ANSWER The maximum amount that can be borrowed under an SBA 7(a)
loan is:
investors looking for tax shelters - ANSWER Research and development limited
partnerships provide funds for entrepreneurs in high-tech fields through:
the sponsoring company acts as the general partner - ANSWER In limited partnerships:
exit - ANSWER Equity partnerships, royalty partnerships, and joint ventures are used in
the ___________ stage of limited partnerships to reap the benefits of the effort.
the entrepreneur - ANSWER When a company receives an SBIR grant, any patent rights
and software generated belong to:
Small Business Technology Transfer - ANSWER Under the ____________ program,
federal agencies with budgets over $1 billion are required to set aside
directors, executive officers, and general partners of the issuing company - ANSWER
Accredited investors are:
SOLUTIONS A+ GRADED
An asset as collateral - ANSWER Typically, debt financing requires:
Equity - ANSWER ________ financing does not require any collateral
the entrepreneur's personal funds - ANSWER The most frequently used source of funds
for start-ups is:
the entrepreneur's personal resources - ANSWER Funds obtained from ____ are the
least expensive in terms of cost and control.
the amount of money is usually small, they do have an ownership position in the venture.
- ANSWER When using equity financing from family and friends:
commercial bank loans - ANSWER The most frequently used source of short-term funds
when collateral is available is:
"buys" the accounts receivables of a firm - ANSWER In a factoring arrangement, the
factor:
about 50 percent of it can be financed - ANSWER When inventory is the asset base for a
loan:
trust receipt - ANSWER When the bank advances a large percentage of the invoice price
of goods and is paid on a pro-rata basis when inventory is sold this is called:
, sale-leaseback arrangement - ANSWER In ____ the entrepreneur sells equipment to the
lender then arranges for its continued use.
real-estate asset-based financing - ANSWER Mortgage financing is another term for:
Line of credit - ANSWER Which of the following types of credit does not require the
pledging of an individual's collateral or a cosigner?
Caution - ANSWER Which of the following is not one of the five C's of lending?
$5,000,000 - ANSWER The maximum amount that can be borrowed under an SBA 7(a)
loan is:
investors looking for tax shelters - ANSWER Research and development limited
partnerships provide funds for entrepreneurs in high-tech fields through:
the sponsoring company acts as the general partner - ANSWER In limited partnerships:
exit - ANSWER Equity partnerships, royalty partnerships, and joint ventures are used in
the ___________ stage of limited partnerships to reap the benefits of the effort.
the entrepreneur - ANSWER When a company receives an SBIR grant, any patent rights
and software generated belong to:
Small Business Technology Transfer - ANSWER Under the ____________ program,
federal agencies with budgets over $1 billion are required to set aside
directors, executive officers, and general partners of the issuing company - ANSWER
Accredited investors are:
