2. Which of the following is TRUE regarding intermediary sources of capital? (Select all that apply.) This category includes investment bankers. They can introduce you to other financing sources. They are a prime source of early-stage capital. They may charge a fee for their services. 5. Which of the following statements is CORRECT about friends and family investors? (Select all that apply.) Only equity investments are allowed given the relationship to the founder Terms should always be put into writing They invest because of the relationship to the founder(s) When discussing an investment with a friends and family investor, the entrepreneur should clearly discuss risk versus reward 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 8. One of the disadvantages of an entrepreneur going into an accelerator program is that the entrepreneur: Spends a lot of time meeting investors interested in future financing rounds Spends too much time receiving training that strengthens his/her business expertise Is often provided new office space Must give up equity to participate