Question

QUESTION 12
1. Which of the following is part of the IPO (initial public offering) process?

A. All of these

B. File with the SEC (Securities and Exchange Commision)

C. None of these

D. Choosing an underwriter

E. Meet all state requirements
  
QUESTION 13
1. Which of the following is/are some(one) of the ways small businesses can obtain funding for their operations and purchases?

A. Having a credit card in the business's name

B. None of these.

C. Leasing instead of buying assets

D. Using retirement money in a 401(k) the entrepreneur has

E. All of these.

QUESTION 14
1. When entrepreneurs fail to put their own money into their business:

A. They find it more difficult to get funding from investors

B. They will likely have more debt and thus higher interest obligations

C. They will have to give up more control of the business to attract investors.

D. A and C only

QUESTION 15
1. Which of the following do venture capital firms NOT look for in selecting businesses to invest in?

A. Businesses with competitive advantages

B. Businesses in the start-up phase of existence

C. Very high returns

D. Clear exit strategies

QUESTION 16
1. What is the purpose of a balance sheet?

A. To show the financial position of a firm at a particular point in time.

B. To show changes in a firm's working capital over time.

C. To provide a moving picture over time of the profitability of the firm.

D. To show that a firm's assets are equal to its liabilities.

QUESTION 17
1. Which of the following represent viable ways of arriving at the figures on a pro forma income statement?

A. Develop a sales forecast and work down to profit.

B. Use numbers that "make sense" for the size of the business being depicted.

C. Set a profit target and work up to a sales forecast.

D. All are viable ways to arrive at figures on a pro forma income statement.

E. A & C only.

QUESTION 18
1. Which of the following is true of break-even analysis?

A. It can be expressed in the number of units a firms produces

B. It can be expressed in days (weeks/months/periods of time)

C. None of these

D. It can be expressed in the number of customers a firm has

QUESTION 19
1. Which of the following is/are NOT sources of funding a small business may seek out that also requires the business to grant partial ownership to those providing funds?

A. Accelerator programs

B. Crowdfunding

C. Angel investors

D. Bootstraping

Answer 1

12. For issuing shares via IPO, the company has to file various documents to the regulatory bodies. Company appoints an underwriter during IPO so that if the expected quantity of share are not subscribed then the underwriter takes the responsibilities to issue such shares. For conducting an IPO, the company has to meet all the regulatory requirements of the state in which it intends to offer IPO.

A. All of these

13. Credit card will allow the business to fetch small funds on a frequent basis. Leasing asset instead of purchasing, will help the business to save huge funds from being invested in capital assets. These funds can be utilised for financing the operating activities. If the company is in a low tax bracket, it can cash out its retirement fund for business purpose.

E. All of these.

14. In such case the entire business will be finance by outside debts like loan, debentures, notes, etc on which interest will be required to be paid.

B. They will likely have more debt and thus higher interest obligations

15. The main objective of a venture capital firms is to support a business by financing it after investigating the business plans and strategies. So such entity cannot be effective if they look for clear exit strategies as in these kind of projects, high risk is involved. If they go for clear exit strategies then very little scope will be available for investing.

As per policy, I can solve four sub parts of a question.