40 which source of capital is identified as a group

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40. Which source of capital is identified as a group of small investors who are willing to invest money into the new firm in exchange for an ownership share? Venture capital firm Foreign investors Stockbroker syndicate Silent domestic partner Banks Answer: Venture capital firm Difficulty: 2 QuestionID: 04-1-40 Page-Reference: 81 Skill: Knowledge Objective: 4.3
41. Trade credit is
Difficulty: 2 QuestionID: 04-1-41 Page-Reference: 81 Skill: Comprehension Objective: 4.3 Answer: delayed payment terms offered by suppliers. 42. An example of a debt source of funds is ________ and an example of an equity source of funds is ________.
Difficulty: 3 QuestionID: 04-1-42 Page-Reference: 80-81 Skill: Comprehension Objective: 4.3 Answer: private lenders; family and friends
43. A business is normally at its riskiest point during the ________ phase.
Difficulty: 2 QuestionID: 04-1-43 Page-Reference: 80 Skill: Knowledge Objective: 4.3 Answer: start-up 44. All of the following are common sources of equity for new ventures except banks. personal savings. love money. private investors. venture capitalists.
Difficulty: 2 QuestionID: 04-1-44 Page-Reference: 81 Skill: Knowledge Objective: 4.3 Answer: banks. 45. Which of the following is correct with regard to collateral? Difficulty: 2 QuestionID: 04-1-45 Page-Reference: 80 Skill: Comprehension Objective: 4.3
46. Which of the following statements is accurate?
Difficulty: 2 QuestionID: 04-1-46 Page-Reference: 80-81 Skill: Comprehension Objective: 4.3 Answer: Banks are typically risk averse. 47. The ________ fit involves determining if the resources needed to capitalize on the opportunity can be acquired.

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