Entrepreneurship - Lecture 08 & 09

________ are limited partnerships of money managers who raise money in "funds" to invest in startups and growing firms.

Income statement records all revenues and expenses for a given period and shows if the firm is making a profit or loss

The common sources of "personal" financing for a startup firm are personal funds, friends and family, and bootstrapping.

The seed money that gets a company off the ground typically comes from ________.

Most business angels remain fairly anonymous and are matched up with entrepreneurs through referrals.

Debt financing means exchanging partial ownership in a firm in exchange for cash.

________ is a company's ability to meet its short-term financial obligations.

The vast majority of founders contribute personal funds along with sweat equity to their ventures.

Historically, commercial banks have been viewed as an excellent source of financing for startup firms.

The first sale of stock by a firm to the public is referred to as a(n) ________.

Which of the following is NOT examples of bootstrapping methods?

Venture capitalists are individuals who invest their personal capital directly in startups.

Bootstrapping is the process of combining personal funds, equity investments, and bank financing to launch a business.

________ financial statements reflect past performance and are usually prepared on a quarterly and annual basis.

Money owed to a company by its customers is referred to as ________.

Financial management deals with two things—managing a company's finances and ________.

Stability is a company's ability to meet its short-term financial obligations.

Which of the following was NOT identified as one of the four main financial objectives of a firm?

The pro forma income statement shows the projected flow of cash into and out of the company during a specified period.

A(n) ________ is a snapshot of a company's assets, liabilities, and owners' equity at a specific point in time.

Beyond their own funds, the second source of funds for many new ventures is ________.

Equity funding is not a loan and the money received is not paid back.