1. At which stage of the life cycle of a business is the entrepreneur most likely to begin seeking external funding?

Group of answer choices

seed or startup stage

launch and growth stage

maturity stage

expansion or re-visioning stage

exit stage

2.

In order to minimize income tax, an entrepreneur should classify cash contribution to the new business as

Group of answer choices

common stock

debt

preferred stock

convertible preferred stock

For tax purposes, the IRS requires all cash contribution be classified as equity by the entrepreneur

3.

According to the Small Business Administration report, the largest providers of business loans in 2013 were

Group of answer choices

banks

finance companies

crow-funding websites

friends and relatives

government grants

4.

Merchant cash advance as a source of finance is

Group of answer choices

very expensive

repayments are taken automatically from revenue with no control by the entrepreneur

unregulated because legally this form of finance is not a loan

easy to obtain

all of the above

5.

An accredited investor

Group of answer choices

must be a human being

in the top 1% of personal wealth

must earn over $1 million in annual income

is defined by the entrepreneur

is defined by the SEC