Which of the following types of financing is typical for a business...

Which of the following types of financing is typical for a business in its mature stage?

• a.)Bank loans
• b.)Expansion venture capital
• c.)Issuing bonds
• d.)Seed money

Which of the following is an advantage of venture capital?

• a.)Companies are obligated to repay venture capital funds, but at a much lower interest rate than a typical bank loan.
• b.)Once a company receives venture capital funding, it is free to operate without further interference or scrutiny.
• c.)Venture capital investors are guaranteed a return on their investment, although the return can vary from small to quite large.
• d.)Although venture capital investments are typically high risk, they offer the potential for large returns for investors.

Determine whether the following statement is true of a capital lease, an operating lease, neither or both.

"A commercial financing agreement in which the finance company legally owns an asset, but the company leases it for a small part of the asset's life."

• a.)Operating lease
• b.)Both
• c.)Capital lease
• d.)Neither

What type of risk does a securities underwriter assume from the issuer?

• a.)The risk that the price of the security will be set too low
• b.)The risk that the issuer will default on the security
• c.)The risk that the issuer will decide not to issue an IPO
• d.)The risk that the security will underperform on the open market

Select one reason why a company would want to go public.

• a.)To have access to a large magnitude of funding
• b.)To benefit from investors who have expertise in the industry
• c.)To undergo a leveraged buyout
• d.)To reduce reporting and registration costs