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Exam 14: Sources of Equity Financing

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Question 51

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Investors like to see entrepreneurs devote at least 30% of a business plan to marketing and selling.

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Question 52

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Outline and briefly describe the common sources of equity capital.

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The most common source of financing a bu...

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Question 53

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Define and describe the importance of the following types of capital. • seed capital • fixed capital • working capital • growth capital

Under a ________ agreement,the underwriter agrees to purchase all of the shares in a company's public offering and then resells them to investors.

Regulation A is best suited when a company is at the ________ stage.

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 business.

The largest cost in a public stock offering is:

________ governs private placements and is designed to reduce the registration requirements for small companies going public.

Most venture capitalists purchase ownership in a small business through:

In exchange for the financing they receive from venture capitalists,entrepreneurs must give up a portion of their businesses,sometimes surrendering a majority interest and control of its operations.

In a public stock offering,the underwriter's primary role is in selling stock through an underwriting syndicate it assembles.

The problem with the lack of funding for start-ups is that the seed capital and funding sources just aren't there.

One important intangible yet highly important advantage an investment from a large corporate partner gives a start-up is:

Briefly review the steps involved in registering a small business for a public stock offering.

The owner of a small retail shoe store and the owner of a small furniture manufacturer would likely have very different capital requirements.

Rule 147 covers interstate offerings.

________ is any form of wealth used to produce more wealth.

Angels often finance deals that venture capitalists would also consider.

In a firm commitment agreement,the underwriter agrees to purchase all of the shares in the offering and then resells them to investors.

A foreign stock market that caters to small companies is: