Question 1

Equity partnerships,royalty partnerships,and joint ventures are used in the ________ stage of limited partnerships to reap the benefits of the effort.

Accepted Answer

A)   funding
B)   development
C)   exit
D)   All of the answers are correct.E) B) and D)
F) A) and D)

Question 2

Under Rule 504 of Regulation D,a company can sell up to $1,000,000 of securities to any number of investors,regardless of their sophistication,in any 12-month period.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not true about the costs and benefits of R&D limited partnerships

Accepted Answer

A)   Most are not successful
B)   Risk is reduced
C)   Costs can be high to create the partnership
D)   Most take less than three months to establishE) A) and D)
F) A) and C)

Question 4

When new equipment is being purchased or presently owned equipment is used as collateral,usually 50 to 80 percent of the value of the equipment can be financed depending on its salability.

Accepted Answer

A) True 
 B)False

Question 5

When borrowing from friends and family,the entrepreneur should avoid putting agreements in writing to avoid future disagreements.

Accepted Answer

A) True 
 B)False

Question 6

All owners,regardless of percentage of ownership,are required to personally guarantee SBA loans.

Accepted Answer

A) True 
 B)False

Question 7

Mortgage financing is another term for:

Accepted Answer

A)   large equipment asset-based financing.
B)   real-estate asset-based financing.
C)   sale-leaseback financing.
D)   unsecured financing.E) B) and C)
F) All of the above

Question 8

About 90 percent of the value of finished goods inventory can be used as collateral for a commercial bank loan.

Accepted Answer

A) True 
 B)False

Question 9

Bootstrap financing involves using any possible method,such as discounts for volume purchasing,to conserve cash.

Accepted Answer

A) True 
 B)False

Question 10

During Phase II of an SBIR grant up to ________ can be awarded.

Accepted Answer

A)   $100,000
B)   $500,000
C)   $750,000
D)   $1,000,000E) B) and D)
F) A) and B)

Question 11

When using private placement funding the entrepreneur must disclose all information as accurately as possible.

Accepted Answer

A) True 
 B)False

Question 12

Equity financing requires collateral.

Accepted Answer

A) True 
 B)False

Question 13

The costs of establishing R&D limited partnerships are greater than conventional financing.

Accepted Answer

A) True 
 B)False

Question 14

The personal funds of the entrepreneur are the most expensive.

Accepted Answer

A) True 
 B)False

Question 15

Banks will lend a company up to 50 percent of their accounts receivable value.

Accepted Answer

A) True 
 B)False

Question 16

Identify and explain the three types of loans used for cash flow financing.

Accepted Answer

A.Installment loans-Installment loans ca...

Question 17

The five Cs of credit are character,capacity,collateral,capital,and competence.

Accepted Answer

A) True 
 B)False

Question 18

The Small Business 7(a) Guaranty program:

Accepted Answer

A)   guarantees up to 50 percent of the amount loaned.
B)   helps qualified small businesses obtain financing when they cannot obtain it through regular lending channels.
C)   has a maximum loan amount of $10 million.
D)   loans can be used only for machinery and equipment, and land and building.E) B) and C)
F) B) and D)

Question 19

Which of the following is not an example of internal financing

Accepted Answer

A)   Profits
B)   Accounts receivable
C)   Credit from suppliers
D)   Equity financingE) B) and C)
F) B) and D)

Question 20

Under the ________ program,federal agencies with budgets over $1 billion are required to set aside 0.3 percent for small businesses.

Accepted Answer

A)   Small Business Technology Transfer
B)   Small Business Innovation Research
C)   SBA Microloan
D)   Regulation DE) C) and D)
F) B) and D)

Exam 11: Sources of Capital

Identify and explain the three types of loans used for cash flow financing.

Correct AnswerverifiedA.Installment loans-Installment loans ca...View AnswerShow Answer

Under the ________ program,federal agencies with budgets over $1 billion are required to set aside 0.3 percent for small businesses.

Correct AnswerverifiedShow Answer

When using private placement funding the entrepreneur must disclose all information as accurately as possible.

Correct AnswerverifiedShow Answer

When borrowing from friends and family,the entrepreneur should avoid putting agreements in writing to avoid future disagreements.

Correct AnswerverifiedShow Answer

When new equipment is being purchased or presently owned equipment is used as collateral,usually 50 to 80 percent of the value of the equipment can be financed depending on its salability.

Correct AnswerverifiedShow Answer

During Phase II of an SBIR grant up to ________ can be awarded.

Correct AnswerverifiedShow Answer

Which of the following is not true about the costs and benefits of R&D limited partnerships

Correct AnswerverifiedShow Answer

All owners,regardless of percentage of ownership,are required to personally guarantee SBA loans.

Correct AnswerverifiedShow Answer

The personal funds of the entrepreneur are the most expensive.

Correct AnswerverifiedShow Answer

The Small Business 7(a) Guaranty program:

Correct AnswerverifiedShow Answer

Mortgage financing is another term for:

Correct AnswerverifiedShow Answer

Equity partnerships,royalty partnerships,and joint ventures are used in the ________ stage of limited partnerships to reap the benefits of the effort.

Correct AnswerverifiedShow Answer

Banks will lend a company up to 50 percent of their accounts receivable value.

Correct AnswerverifiedShow Answer

The five Cs of credit are character,capacity,collateral,capital,and competence.

Correct AnswerverifiedShow Answer

The costs of establishing R&D limited partnerships are greater than conventional financing.

Correct AnswerverifiedShow Answer

About 90 percent of the value of finished goods inventory can be used as collateral for a commercial bank loan.

Correct AnswerverifiedShow Answer

Under Rule 504 of Regulation D,a company can sell up to $1,000,000 of securities to any number of investors,regardless of their sophistication,in any 12-month period.

Correct AnswerverifiedShow Answer

Bootstrap financing involves using any possible method,such as discounts for volume purchasing,to conserve cash.

Correct AnswerverifiedShow Answer

Which of the following is not an example of internal financing

Correct AnswerverifiedShow Answer

Equity financing requires collateral.

Correct AnswerverifiedShow Answer

Correct Answer
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A.Installment loans-Installment loans ca...
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