ENGRI 127 Quiz - a. b. c. d. liquidity for investors ease...

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ENGRI 127 Quiz Week of April 28, 2008 Quiz #10 Name_____________________________________ Multiple Choice. Circle the letter of the best answer. 1. When a high-tech company is going through the start-up phase, typical sources of financing include all but which of the following. a. b. c. d. second mortgages private equity friends and family commercial bank loans 2. An advantage of debt financing is a. b. c. d. regular interest payments. bankruptcy. inhibition of growth and development. retention of ownership. 3. Equity capital is a. b. c. d. paid back within one year. paid back after five years. not a loan but a form of stock. all of the above. 4. One of the disadvantages of taking a company public in an initial public offering is
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Unformatted text preview: a. b. c. d. liquidity for investors ease of acquiring capital growth opportunity required compliance with Sarbanes-Oxley 5. A disadvantage of funding a companys growth using equity capital is: a. b. c. d. founders will own a smaller percentage of the company as investors purchase shares. it has a negative connotation in the media. the company will encounter higher tax rates greater environmental regulations will be enforced. 6. One of the disadvantages of bootstrapping is: a. Growth rates may be constrained by the lack of capital b. The founders retain 100% ownership of the company c. Tax-wise, there are problems d. Bootstrapping is not strictly legal in the USA...
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ENGRI 127 Quiz - a. b. c. d. liquidity for investors ease...

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