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Entrepreneurship > Financing the venture > Flashcards

Financing the venture Flashcards

1
Q

a business project need to have substantial start up capital requirement nor does one have to be a millionaire to start an entrepreneurial business endeavor.

A

Financing the venture

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2
Q

Capital requirement

A
  1. Fixed capital
  2. Working capital
  3. Growth Capital
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3
Q

refers to the money needed to purchase fixed assets or capital goods.

A

fixed capital

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4
Q

it is needed to fund day to day business operation

A

working capital

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5
Q

it is not related to daily or seasonal requirments for funds of the business.
it is needed when an existing business is set to expand, diversity, or change its directions.

A

growth capital

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6
Q

internal funds sources generally refers to the funds which are owned by the entrepreneur himself or the company, whereas external capital essentially refers to those beyond the means of the entrepreneur and the company.

A

sources of capital

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7
Q

it means sourcing or borrowing funds from organizations or institutions duly authorized by government or by the law to extend financial support services to the business and industry.

A

the formal and informal sources

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8
Q

the contribution of the owner to the capital of the business is called?
it is evidenced by the issuance of stockholders certificate issued by the corporation.

A

owner’s equity

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9
Q

refers to organizations whose main businesses are generally meant for providing such form of financial assistance.

A

long term borrowing

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10
Q

Forms of fund sources

A

1.mortgage
2. bonds
3. long term commercial papers

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11
Q

form of fund generation by the way of pledging a designated property as security or collateral for the loan.

A

mortgage

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12
Q

of indebtedness of the issuing company that promises a fixed amount of interest to the bondholders upon maturity or call by its holders.

A

bonds

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13
Q

are commercisl documents issued by large companies with credible track records.

A

long term commercial papers

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14
Q

take the form of financers on a short term basis lasting to one year or less
-serve as a stand by credit facility to the entrepreneurs, which can be tapped as needed.

A

short term creditors

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15
Q

Types of creditors

A
  1. commercial banks
  2. merchandise suppliers
  3. credit card companies
  4. capital equipment suppliers
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16
Q
A
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17
Q

refer to private and for profit organizations that provide funds to new business ventures by way of purchasing equity positions in new or young businesses that have potentials to produce maximum returns within short period of time.

A

venture capital company

18
Q

other souces :

A
  1. lending investors
  2. government institutions
  3. Non government organization (NGO)
  4. Political sources
  5. friends and relatives
  6. purchase order financing
  7. employees
  8. usurers
19
Q

entrepreneurs may start up capitals with private investors called “angels” as reffered to by the entrepreneurs magazine

A

Angel investors

20
Q

it means going through the stock market system under auspices of the philippjne stocks echsnge.

A

IPO

21
Q

The C’s of credit

A
  1. collateral
  2. capacity
  3. characder
  4. contract
  5. conditions
22
Q

are duty bound to provide both short term and long term financing to any viable business project

A

commercial banks

23
Q

the company’s inventory or stock can be procured either through cash or credit terms.

A

merchandise suppliers

24
Q

it is the most convenient. yet the most expensive loan terms.

A

credit card companies

25
Q

desire to sell equipment, suppliers will often make every favorable term even to new companies.

A

Capital equipment suppliers

26
Q

the sellers retains ownership or title until the last installment payment is made and received

A

capital equipment suppliers

27
Q

procurement of capital items or equipments for the company

A

leasing and companies

28
Q

specialized organizations like credit and collection companies or even individuals who take risk of buying receivables and discount rates

A

receivable factors

29
Q

some of the employees might be willing to defer portions of their salary or other benefitsbas gesture of solidarity, loyalty, fellowship

A

defferal of payables in general

30
Q

refer to private and for profit organizations that provide funds to new business ventures by way of purchasing equity positions

A

venture capital companies

31
Q

small business organizations duly licensed by Bangko Sentral ng Pilipinas BSP to provide quick financing with less paper works

A

lending investors

32
Q

are special government financing packages meant for enterpreneurs in need of funds as seed capital as assistance to those in dire need of funds

A

government institutions

33
Q

mandates or major programs really meant for upcoming small scale enterpreneurs

A

Non Government organizations (NGOs)

34
Q

politicians are philanthropist and are, therefore, in a position to provide grants of financial assistance for self employment and livelihood projects

A

political sources

35
Q

they are abound or are just around willing to be tapped

A

friende and relatives

36
Q

called PO financing, arranged with commercial banks or financing institutions like technology and livelihood resource center

A

purchase order financing

37
Q

has a greater stake in the health of the company other than the entrepreneur/owner and the employee

A

employees

38
Q

they helped a thousand and more small entrepreneurs mostly in sari-sari store business

A

usurers

39
Q

start up capital with private investors as reffered to by the entrepreneurs magazine

A

Angel investors entrepreneurs

40
Q

it means going through the stock market system under the auspices of the Philippines Stocks exchange

A

IPO

41
Q

it means going through the stock market system under the auspices of the Philippines Stocks exchange

A

IPO

Entrepreneurship (4 decks)

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