Chapter 10 Flashcards
10.1 Many entrepreneurs approach the task of raising capital haphazardly because they __________.
lack experience in this area
10.2 If a firm operates in the red, its negative real-time cash flow, usually computed monthly, is known as its _______.
burn rate
10.3 Which of the following is a source of personal financing?
Bootstrapping, Equity financing, Debt Financing, Line of Credit, Business angels
Bootstrapping
10.4 The time and effort that entrepreneurs put into their venture, that can’t be easily measured financially, is called _______.
sweat equity
10.5 If the entrepreneurial business has a unique idea, high growth, a niche market, and proven management, the most appropriate financing or funding source is _______.
equity financing
10.6 The most common sources of debt financing are _______.
commercial bank and SBA guaranteed loans
10.7 __________ is an investment made in a firm to provide for further expansion or to bridge its financing needs before launching an IPO or before a buyout.
Mezzanine financing
10.8 _______ are limited partnerships of money managers who raise money to invest in startups and growing firms.
Venture capital firms
10.9 Ninety percent of the SBA’s loan activity is accounted for by _______.
the 7(A) Loan Guaranty Program
10.10 The SBIR and the STTR programs are two important sources of early-stage funding for firms in what industry?
Technology
