BUSI 3004 Week 5 Quiz

(BUSI 3004 Week 5 Quiz, BUSI 3004 Week 5 Quiz)

1. Question: About 90 percent of the value of finished goods inventory can … as collateral for a commercial bank loan.
2. Question: ….. financing does not require any collateral.
3. Question: In a factoring arrangement, the factor:
4. Question: Typically, debt financing requires:
5. Question: The U.S. Department of Justice frequently issues guidelines for di”erent types of mergers..
6. Question: The least liquid current asset, , is … when calculating the acid test ratio.
7. Question: Which of the following is not an advantage of franchising?
8. Question: Venture capital firms generally prefer a minimum funding level of $100,000.
9. Question: Which of the terms in a franchise agreement is the most likely cause of a lawsuit?
10. Question: In a private venture capital firm, the manages the fund in exchange for a management fee and a percentage of profits.
11. Question: Under the Small Business Technology transfer (STTR) program, federal agencies with budgets over $1 billion are … to set aside 0.3 percent for small businesses.
12. Question: In an R&D limited partnership the liability for losses … is borne by the limited partners.
13. Question: The informal risk-capital market is made up of .
14. Question: Franchising means that the franchisor is no longer able to benefit from economies of scale in purchasing.
15. Question: In most leveraged buyouts, the equity usually exceeds the debt capital equity by 5:1.
16. Question: Trust receipts are inventory loans … to finance floor plans of retailers such as automobile dealers..
17. Question: With the enactment of the Sarbanes-Oxley Act in 2002, the expense and administrative responsibilities of being a public company, as well as the liability risks of officers and directors, are significantly lesser..
18. Question: For the franchisor, the capital … to expand a venture quickly is less than it would … without franchising.
19. Question: The most common type of joint venture is between two or more private sector companies.
20. Question: Making long-term decisions can … difficult in publicly traded companies where sales and profit evaluations indicate the capability of management via stock values.
21. Question: The personal funds of the entrepreneur are the least expensive in terms of cost and control.
22. Question: The costs of establishing R&D limited partnerships are greater than conventional financing.
23. Question: The asset base for loans is usually accounts receivable, inventory, equipment, and real estate.
24. Question: The underwriter is of critical importance in establishing the initial price for the stock of the company.
25. Question: The most frequently … source of short-term funds when collateral is available is: