Question 21 (3 points) Stock, equity contribution and retained earnings are found in the liability section of a companys balance sheet. 1) True 2) False Question 22 (3 points) What are two types of factoring? 1) Short term and long term 2) Recourse and nonrecourse 3) Cheap vs expensive 4) A and C are correct. 5) A, B, and C are correct. Question 23 (3 points) What are some key reasons that an entrepreneur should value their company? 1) To determine how much equity to give up for partnership agreements 2) To find out what the company is doing wrong 3) To determine a sale price for the company 4) To determine how much equity to give up for investor capital 5) All of the above except B Question 24 (3 points) What is a key advantage of using factoring: 1) It provides cash at a cheaper rate 2) It provides the required cash immediately 3) Pay back terms are long term 4) It maximizes risk 5) All answers are correct Question 25 (3 points) One of the key factors to understand when raising capital is that you will always run out of money. 1) True 2) False