1. Early stage companies, owing to the lack of history and collateral, rarely raise money via debt with one notable exception, which is: Preferred stock, with a dividend that acts like an interest rate Shareholder loans Common stock Convertible notes, which are a hybrid, more closely related to equity 3. Strategic or corporate venture capital firms make investments: Within their core businesses to achieve financial and strategic returns Only to achieve financial returns Primarily outside of their core businesses to diversify their risk To build risk portfolios with excess cash of the corporation 4. The primary sources of seed and early stage capital include the following: (Select all that apply.) Angel investors Founders IPO's Management team 7. What is the primary benefit to the entrepreneur of bootstrapping his/her company: The longer time it takes to get to market allows the entrepreneur time to make sure the product works perfectly Bartering with established companies develop lasting relationships that would not otherwise be developed If successful, the entrepreneur retains a greater share of the exit value (or a higher valuation during fund raising) It allows the entrepreneur to be creative in finding ways to achieve progress without money