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Study Resources (Business Management)

    1) The credit crunch has hit those entrepreneurs seeking between $100,000 and ________. A) $3 million B) $500,000 C) $1 million D) $750,000   2) Unlike entrepreneurs of the past, today's entrepreneurs: A) are finding more government interest and funding for business start-ups than ever before. B) find fewer closed doors as small business start-ups have become less.
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    61) The problem with the lack of funding for start-ups is that the seed capital and funding sources just aren't there.   62) Layered financing is the process of piecing start-up capital together from a variety of sources rather than relying on a single source of funds.   63) Seed capital for the entrepreneur.
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  139) Do angels finance start-ups or established firms?   140) Venture capital companies are an important source of equity funding for small businesses. Discuss their policies, ownership, control, and investment preferences when it comes to funding small businesses.       .
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    81) Even companies whose financial statements are too weak to produce other types of loans can get asset-based loans.   82) Typically, a commercial bank will lend a small business owner 100% of the value of accounts receivable pledged as collateral.   83) Inventory-only deals are the easiest form of asset-based financing to obtain.
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    31) SBICs: A) were chartered by the SBA to help start-up companies find private financing from commercial banks and finance companies. B) provide short-term debt-based capital to small businesses through the sale of the debt to private investors. C) cannot invest in or lend money to a business for more than five years. D).
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    11) Which form of financing works especially well for manufacturers, wholesalers, distributors, and other companies with significant stocks of inventory, accounts receivable, equipment, real estate, or other assets? A) Asset-based lenders B) Corporate investors C) Government funding D) None of the above   12) Asset-based borrowing permits small businesses: A) to borrow up to 100% of the.
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    21) Most venture capitalists purchase ownership in a small business through: A) a common stock or convertible preferred stock. B) an ESOP. C) loans with an option to buy stock. D) a general partnership.   22) The two factors that make a deal attractive to venture capitalists are: A) effective marketing strategies and networking opportunities. B) high returns.
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    61) Research indicates that for online merchants, customer service is not as important on the Web as it is in traditional brick-and-mortar stores. 62) On the Web, "more" does not necessarily equate to "better."   63) Web-based entrepreneurs often discover that the greatest challenge their businesses face is attracting customers on the.
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    31) The document outlining the details of the agreement between the entrepreneur and the stock underwriter is called: A) Regulation D. B) a filing. C) the letter of intent. D) the registration statement. 32) Under a ________ agreement, the underwriter agrees to purchase all of the shares in a company's public offering and then resells.
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    41) When a bank makes enough good SBA-guaranteed loans to become a ________ lender, the SBA promises a faster turnaround time for the loan decision–typically 3 to 10 business days. A) preferred B) qualified C) certified D) LDC 42) When a bank proves the quality of its loan decisions to the SBA and becomes a.
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    121) Leasing is an effective way to reduce long-term capital requirements for a small business.   122) Jerry Turner and Michael Clarke needed money to buy equipment and weren't able to get either trade credit or a bank loan because they had no assets and didn't have the cash for a down.
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    1) What types of products are best suited for selling on the Web? A) High-volume and high margin B) High-volume and low margin C) Commodity D) High volume, low margin, and commodity   2) The items purchased most often online are: A) travel services. B) computer hardware. C) clothing and books. D) All of the above   3) As a benefit of.
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    51) Some of the most common reasons small or mid-sized companies take their business to the Web are to keep up with the customers and to reach global markets.   52) Creating a meaningful presence on the Web requires an ongoing investment of resources–time, money, energy, and talent.   53) Web success requires.
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    81) Secure Fire layer (SFL) technology is being used to encrypt customers' transaction information as it travels across the Internet.   82) The three-digit number above the signature panel on the back of the credit card is referred to as CCV or CCV2.   83) The average conversion rate is about 10 percent. 84).
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    11) Before your Web site can become the foundation for a successful e-business, you must create it with your ________ in mind. A) technology B) employees C) target audience D) vendors   12) The most common reasons for leaving a site without purchasing include: A) the shopping cart was easy to find. B) checking out was easy.
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    101) Over the past 30 years, SBICs have provided over $13 billion in financing to some 80,000 small businesses.   102) An SBIC can lend up to 40% of its private capital to a single client. 103) SBICs provide only debt financing to small businesses.   104) Small Business Lending Companies (SBLCs) make only intermediate.
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    51) The capital access programs (CAPs) were first introduced in: A) Iowa. B) Michigan C) Wisconsin. D) New York   52) A small business that uses factoring: A) pledges its accounts receivable as collateral to obtain a loan from a financial institution. B) relies on a third-party consultant to apply for SBA-guaranteed loans. C) sells its accounts receivable.
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    21) E-mail lists and ________ are powerful tools for building a community of visitors at a site. A) toll free numbers B) discussion boards C) chat rooms D) broadcast advertising   22) To increase customer confidence and credibility, join programs such as: A) Don and Brad Street. B) TRUSTe. C) BBBOnLine. D) Both B and C   23) An ideal domain name.
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    101) The IPO process requires costly compliance with federal regulations. 102) Section 4(6) covers public IPOs.   103) Section 4(6) covers private placements.   104) Rule 147 covers interstate offerings.   105) In a Rule 147 (intrastate) offering, a company may only sell its shares to investors in the state in which it is incorporated and does.
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    81) A customer typically gets clues about a business's image through: A) exterior architectural style. B) exterior signs and color. C) general appearance. D) All of the above   82) Site selection begins with considering what city in which to locate and then broadening the search to consider the region and state.   83) The first phase in.
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  147) What are local development companies and the small business innovation research programs? How do they help small businesses?     148) Explain the different SBA loan programs. Explain how a typical SBA loan guarantee works. What interest rates do such loans normally carry? 149) Explain how a small business can use factoring to.
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    41) The outstanding publicly held stock is also called: A) the public float. B) equity stock. C) preferred stock. D) available float.   42) Which of the following is the most popular rule of Regulation D exemptions? A) 501 B) 502 C) 503 D) 504   43) Most companies that make Rule 5 offerings raise between $1 million and: A) $50 million. B) $10.
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  140) Under what circumstances should the small business owner consider borrowing money?   141) Explain the role of commercial banks as source of debt capital for small businesses. What types of financing are available from commercial banks? 142) What is asset-based borrowing? Explain the two major types of asset-based borrowing, including the pros.
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    1) Sometimes small businesses have to use debt financing instead of equity financing. When they do, they discover that: A) banks give them a lower interest rate because of their closeness to the customer and better management practices. B) finance companies are their primary source for debt funding. C) the cost of debt.
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    71) Commercial banks are primarily lenders of short-term capital to small businesses. 72) The common short-term loan is for one year, often repaid sooner, and repaid in one lump sum. 73) A line of credit is usually secured by collateral.   74) A recent survey of small companies with lines of credit found that.
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    91) The key to promoting a Web site is networking, building relationships with other companies, customers, trade associations, on-line directories, and other Web sites your company's customers visit.   92) Online merchants must recognize that customer service is just as important (if not more so) on the Web as it is.
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    81) Foreign corporations invest in U.S. small businesses through strategic partnerships in order to gain access to new technology, new products, and U.S. markets.   82) To justify the cost of investigating the offers they receive, venture capitalists typically seek investments in the $200,000 to $500,000 range.   83) Venture capital companies reject 90%.
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    91) Loans from stockbrokers carry higher interest rates since the collateral–stocks and bonds in the borrower's portfolio–involve a high level of risk.   92) Loans from a stockbrokerage on the small business owner's portfolio can be "called" to be paid within a matter of days or even hours.   93) Insurance companies specialize in.
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    121) Angels often finance deals that venture capitalists would also consider.   122)  A typical venture capital company seeks to purchase 20 percent to 40 percent of a business.   123) Being listed on an organized stock exchange, even a small regional one, improves the marketability of a company's shares and enhances its image.   124).
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    41) Which of the following is correct? A) Make it easy for customers to change the contents of their shopping carts. B) Give customers the option of calling to resolve problems they encounter during checkout. C) Make it easy for customers to pay for their online purchases. D) All of the above   42) Which of.
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    11) A disadvantage of using friends and relatives as investors is: A) they tend to demand more stock options. B) familial seniority often conflicts with the "chain of command". C) they require more leniency with benefits and pay. D) unrealistic expectations or misunderstood risks destroy friendships or family relationships. 12) Private investors, or "angels," are.
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    31) In web analytics, CPA is the acronym for A) customers per acquisition. B) cost per account. C) customers per account. D) cost per acquisition.   32) Conversion rates range from A) 8-10 percent. B) 2-6 percent. C) ten plus percent. D) 1-4 percent 33) The average conversion rate is. A) 10 percent B) 3.2 percent C) less than 1 percent D) 5.8 percent   34).
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    131) The Community Development Block Grants (CDBGs) are extended to cities and towns that, in turn, lend or grant money to entrepreneurs to start small businesses that will strengthen the local economy.   132) The maximum disaster loan usually is $2 million. 133) CAPs are designed to encourage lending institutions to make loans.
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    61) Character loans typically require the following from the business owner: A) financial statements. B) tax returns. C) evaluations. D) None of the above 62) Nonbank sources of debt financing could be based on: A) asset-based lenders. B) inventory financing. C) Both A and B D) None of the above   63) Jones Manufacturing has been in business for 30 years..
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    51) Regulation A is best suited when a company is at the ________ stage. A) startup B) early C) expansion D) later 52) Interstate offerings (Rule 147) is not best suited when a company is at the ________ stage. A) startup B) early C) expansion D) later   53) These ________ are wealthy individuals, often entrepreneurs themselves, who invest in business.
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