Question 1

Which of the following is not a likely source of financing available during a venture's startup stage?

Question 1 options:

A)	the entrepreneur's assets, family, and friends

B)	business angels

C)	bank loans

D)	venture capitalists

Question 2 (

A financial statement that provides a snapshot of a business's financial position as of a specific date is called the:

Question 2 options:

A)	income statement

B)	balance sheet

C)	statement of retained earnings

D)	statement of cash flows

Question 3

A financial statement that shows how cash, as reflected in accrual accounting, flows into and out of a company during a specific period of operation is called the:

Question 3 options:

A)	income statement

B)	balance sheet

C)	statement of retained earnings

D)	statement of cash flows

Question 4

Which of the following is not a characteristic of marketable securities?

Question 4 options:

A)	short term

B)

illiquid

C)	high quality

D)	interest bearing

Question 5

Retained earnings is:

Question 5 options:

A)	a corporate asset

B)	part of owners' equity

C)	a corporate asset minus current liabilities

D)	long-term debts plus current assets

Question 6

Which of the following is a source of cash?

Question 6 options:

A)	an increase in accounts receivable

B)	the acquisition of land

C)	an increase in the amount owed on a note payable

D)	the repurchase of outstanding shares of stock

Chapter_03_Organizing_and_Financing_a_New_Venture

Question 7

Which form of business organization is characterized by having the shortest startup time and lowest legal costs?

Question 7 options:

A)	proprietorship

B)	limited partnership

C)	corporation

D)	limited liability company (LLC)

Question 8

Intellectual property can be protected by all of the following except:

Question 8 options:

A)

patents

B)	trademarks

C)	legal disclaimers

D)	copyrights

Question 9

Patents are intellectual property rights granted for inventions that are:

Question 9 options:

A)	not useful, novel, and nonobvious

B)	not useful, not novel, and obvious

C)	useful, novel, and nonobvious

D)	useful, not novel, and obvious

Question 10

During the development stage, seed financing chiefly comprises:

Question 10 options:

A)	funds from business angels and venture capitalists

B)	the entrepreneur's personal assets and funds from family and friends

C)	venture capitalists and the entrepreneur's personal assets

D)	business angels and funds from family and friends