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Unlike entrepreneurs of the past. today s entrepreneurs:

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1) Unlike entrepreneurs of the past. today s entrepreneurs:
a. have to piece their capital together from several sources
b. find fewer closed doors as small business start ups have become less risky
c. are finding more government interest and funding for business start ups than ever before
d. are spending nearly 75% of their time raising capital
2) The money Earl uses to build inventory for the upcoming Christmas season would be classified
as capital.
a. working
b. fixed
c. effic iency
d. growth
3) ___ financing includes the personal investment of the owners and is often called risk
a. Asset based
b. Debt
c. Equity
d. Growth
4) When looking for an angel, the key is:
a. searching the web
b. using business incubators computer matching services
c. using the SBA as a contact point
d. networking
5) When taking a company public, investment bankers look for:
a. 3 to 5 years of audited financial statements
b. a moderate growth rate
c. a strong record of revenues
d. a leading position in a stable market
6) Under a agreement, the underwriter agrees to purchase all of the shares in a company s public offering and then resells them to investors.
a. firm commitment
b. lock up
c. final price
d. best effort13) When a small business is refused a loan because it is not profitable and deemed a poor credit
risk, the owner can usually turn to as a source of short term funds.
a. venture capital companies
b. trade credit
c. loans from insurance companies
d. stoc kbrokers
14) A federally sponsored program which offers loan guarantees to create and expand businesses
in areas with below average income and high unemployment is called:
a. the Farmers Home Administration
b. the Economic Development Administration
d. the Small Business Administration
15) Grants to small businesses, made to strengthen the local economy in cities and towns that are
considered economically distressed, are made by:
a. the Farmers Home Administration
b. a local development company
c. the Economic Development Administration
d. the Department of Housing and Urban Development
16) When a bank makes enough good SBA guaranteed loans to become a lender, the
SBA promises a faster turnaround time for the loan decision typically 3 to 10 business days.
a. LDC
b. certified
c. preferred
d. qualified
17) A Section 504 program has three types of lenders involved:
a. a local development company, the SBA, and a commercial finance company.
b. a bank, the SBA, and a certified development company.
c. the SBA, a private placement, and an SBIC.
d. HUD, a bank, and an economic development company.24) What are two distinct factors are important for entrepreneurs analyzing the labor supply in a
potential location?
a. Minimum wage in the area and the labor s level of education, training and experience.
b. Minimum wage and the number of workers available in the area.
c. Cost of transportation and minimum wage.
d. The number of workers available in the area and their level of education, training, and
25) Jim wanted to start an outside cafe in his neighborhood. When he started the construction,
the building department made him to stop since he was not in accordance to the local zone.
What would be the best option for Jim?
a. He should quit and consider another location.
b. Joe could appeal to the local zoning commission.
c. Joe should hire an attorney and sue the city for the money he has spent thus far.
d. He could have the subcontractors to complete the cafe at night so the building department
will not be around.

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