Answer the following statements true (T) or false (F)
1. Equity financing comes with cash alone but not any other help.
2. Venture capital firms invest in more companies than all other sources of investment all together.
3. Entrepreneurs should ask for more money than they need at all times.
4. Bootstrapping is defined as the process through which entrepreneurs invest resources from investors.
1.False – While debt financing usually comes as cash alone, equity financing may bring more than just the needed capital of the help such as mentorship, advice and contacts.
2.False – While the press frequently emphasizes the role of venture capital firms in the economy, their investment is in very few companies compared to the total number of ventures financed by private individuals/angel investors.
3.False – Raising the right amount of cash reduces dilution and eases the exit process.
4.False – Bootstrapping is defined as the process through which entrepreneurs find creative ways to exploit opportunities in order to launch and get traction for their startup business while having limited resources available.
You might also like to view...
In inflation targeting, the range that represents the goal for the inflation rate is known as the
A. target band. B. optimal range. C. central tendency. D. ultimate goal.
The balance in Allowance for Uncollectible Accounts must be considered prior to end-of-period adjustment when using which of the following methods?
a. Direct charge-off method b. Both direct charge-off method and percentage of net sales method c. Percentage of net sales method d. Accounts receivable aging method
For tax purposes, a Limited Liability Company may elect to be treated as a partnership
Indicate whether the statement is true or false
Identify and describe the principal contract interests a court may seek to protect