BUSI 3004 Week 5 Quiz

Course : BUSI 3004 Entrepreneurship for Small Business
Contributed : Megan
  • $25.00
  • BUSI 3004 Week 5 Quiz
  1. Question: About 90 percent of the value of finished goods inventory can be used as collateral for a commercial bank loan.
  2. Question: ….. financing does not require any collateral.
  3. Question: In a factoring arrangement, the factor:
  4. Question: Typically, debt financing requires:
  5. Question: The U.S. Department of Justice frequently issues guidelines for di"erent types of mergers..
  6. Question: The least liquid current asset, is eliminated when calculating the acid test ratio.
  7. Question: Which of the following is not an advantage of franchising?
  8. Question: Venture capital firms generally prefer a minimum funding level of $100,000.
  9. Question: Which of the terms in a franchise agreement is the most likely cause of a lawsuit?
  10. Question: In a private venture capital firm, the manages the fund in exchange for a management fee and a percentage of profits.
  11. Question: Under the Small Business Technology transfer (STTR) program, federal agencies with budgets over $1 billion are required to set aside 0.3 percent for small businesses.
  12. Question: In an R&D limited partnership the liability for losses incurred is borne by the limited partners.
  13. Question: The informal risk-capital market is made up of .
  14. Question: Franchising means that the franchisor is no longer able to benefit from economies of scale in purchasing.
  15. Question: In most leveraged buyouts, the equity usually exceeds the debt capital equity by 5:1.
  16. Question: Trust receipts are inventory loans used to finance floor plans of retailers such as automobile dealers..
  17. Question: With the enactment of the Sarbanes-Oxley Act in 2002, the expense and administrative responsibilities of being a public company, as well as the liability risks of officers and directors, are significantly lesser..
  18. Question: For the franchisor, the capital required to expand a venture quickly is less than it would be without franchising.
  19. Question: The most common type of joint venture is between two or more private sector companies.
  20. Question: Making long-term decisions can be difficult in publicly traded companies where sales and profit evaluations indicate the capability of management via stock values.
  21. Question: The personal funds of the entrepreneur are the least expensive in terms of cost and control.
  22. Question: The costs of establishing R&D limited partnerships are greater than conventional financing.
  23. Question: The asset base for loans is usually accounts receivable, inventory, equipment, and real estate.
  24. Question: The underwriter is of critical importance in establishing the initial price for the stock of the company.
  25. Question: The most frequently used source of short-term funds when collateral is available is:
 

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