Answer the following statements true (T) or false (F)

Question

1. Most of the funds for startups come from angel investors.
2. Nascent entrepreneurs are individuals who started a firm in the last 6 months.
3. Equity financing allows equity ownership which means sharing of the revenue of the entire venture on a pro rata basis.
4. International (global) entrepreneurship is “the process of an entrepreneur conducting business activities across national boundaries.”
5. Entrepreneurial finance differs from corporate finance in two key points: paucity of historic data to work from and the ability for entrepreneurs to diversify or measure their risks.

Answer 1

1.False – Friends and family
2.False – They do not have a firm yet but are in the process of starting one.
3.False – Equity financing allows equity ownership which means shares on a pro rata basis in the profits and disposition of any assets, including the sale of the entire venture.
4.True – It is about conducting business across national borders.
5.True – When we deal with entrepreneurs or entrepreneurial ventures, especially startups, there are two key points to consider:
• there is usually a paucity of any historic data, and
• entrepreneurs do not have the ability to diversify or even measure their risk in the normal way.