This is one of three reasons most entrepreneurial ventures need to raise money in their early life
What is Cash Flow Challenges, Capital Investments, & Lengthy Product Development Cycles
100
This is a specific amount of money borrowed that must be repaid in a fixed amount of time with interest
What is Single-Purpose Loan
100
This is what the acronym IPO stand for
What is Initial Public Offering
100
This is a written agreement in which the owner of a piece of property allows an individual or business to use the property for a specific period of time in exchange for payments.
What is a lease
200
These were the two cities that made up most of Sally's candle market
What is Boston & Miami
200
This is the time and effort an entrepreneur puts into a new business venture
What is Sweat Equity
200
This is the main advantage of debt financing
What is "No ownership of the company is suspended," "The interest payments on the loan are tax deductible"
200
Individuals who invest their personal capital directly in start-ups
What is Business Angels/Angel Investors
200
These firms act as brokers, bringing the parties involved in a lease together.
What are Venture-Leasing Firms
300
Due to upcoming holidays, approximately 65% of Sally's sales occurred during these months
What is September and October
300
Buying used instead of new equipment, minimizing personal expenses, and sharing office space with other businesses are all examples of __________.
What is Bootstrapping
300
This is one of the two reasons banks are reluctant to loan money to start up companies
What is "Small firms are not as profitable as large firms," "Banks are risk averse"
300
This is money invested by firms in start-ups and small businesses with exceptional growth potential
What is Venture Capital
300
This is a competitive grant program that provides over $1 billion per year to small businesses for early stage and development projects
What is the SBIR Program
400
This was Sally's original method of financing
What is Personal Financing
400
The cost of buying real estate, building facilities, and purchasing equipment, are all funded by _______ ________
What are Capital Investments
400
This is the most notable SBA program available to small businesses
What is 7(A) Loan Guaranty Program
400
This is the name of the percentage of profits that venture capitalists receive which is on average between 30 and 40 percent.
What is Carry
400
This phase of SBIR is intended to demonstrate the proposed innovations technical feasibility
What is Phase I
500
Sally's method of funding her business with a bank loan falls under this category
What is Debt Financing
500
The rate at which a company is spending its capital until it reaches profitability.
What is Burn Rate
500
This is the approximate percentage of Banks in the United States that participate in the SBA Guaranteed Loan Program
What is 50%
500
This federal law passed in 2002 was a response to corporate accounting scandals involving prominent corporations, like Enron and WorldCom.
What is the Sarbanes-Oxley Act
500
Biotech companies rely heavily upon this type of financial support