Question 1

A garage start-up is a myth in today's world.

Accepted Answer

Many successful companies, including tech giants like Apple, Google, and Amazon, began as garage startups, proving that starting a business in a garage is not a myth but a part of entrepreneurial history that continues to inspire new generations.

Question 2

Credit cards can be used as a source of funding for a new adventure.

Accepted Answer

Credit cards can be used to fund new ventures, especially for initial expenses or as a short-term financing option, although they might come with high interest rates and financial risks if not managed properly.

Question 3

Outsourcing is a bootstrapping technique.

Accepted Answer

Outsourcing is a bootstrapping technique because it allows startups and small businesses to access services and skills without the need for significant upfront investment in hiring full-time employees, thus conserving resources while still enabling growth and development.

Question 4

Raising outside funds can be divided into two categories: early seed funding from venture capitalists and growth funding from family and friends.

Accepted Answer

Early seed funding can come from a variety of sources including family, friends, angel investors, and venture capitalists, while growth funding often involves larger investments from venture capitalists, private equity firms, or public markets.

Question 5

Running out of money is the most common reason for small companies to fail.

Accepted Answer

The most common reason small companies fail is due to cash flow problems, essentially running out of money, which can stem from poor financial management, lack of demand, or inability to secure additional funding.

Question 6

Micro-loans were introduced initially in 1976.

Accepted Answer

Micro-loans were introduced by Muhammad Yunus in 1976 in Bangladesh, aiming to provide small loans to the impoverished without requiring collateral.

Question 7

With Micro-loans you must provide personal guarantees.

Accepted Answer

Micro-loans often require personal guarantees because they are unsecured loans, meaning they are not backed by collateral. This means that the lender has no recourse if the borrower defaults on the loan, so they require a personal guarantee from the borrower to ensure that they will repay the loan.

Question 8

STTR program stands for Student Business Technology Transfer.

Accepted Answer

STTR stands for Small Business Technology Transfer program.

Question 9

Most states have programs that provide financial assistance or incentives to small businesses.

Accepted Answer

Most states in the U.S. offer various forms of financial assistance or incentives to small businesses, including grants, loans, tax credits, and other support programs to encourage economic development and job creation.

Question 10

A minority-owned business is one that is 51 percent or more owned by one or more owners who are either minorities or women.

Accepted Answer

A minority-owned business is defined as one that is 51 percent or more owned by one or more owners who are either minorities or women.

Question 11

___________ are a very popular source for start-up capital because they are not as worried about quick profits.

Accepted Answer

The answer of ___________ are a very popular source for...

Question 12

_________________ websites provide organizational systems which link new artists, designers, and project initiators with committed supporters who believe in the persons behind the projects strongly enough to provide monetary support.

Accepted Answer

The answer of _________________ websites provide organizational systems which link...

Question 13

Reward-based, donation-based, equity-based, and loan-based are categories of _______________.

Accepted Answer

The answer of Reward-based, donation-based, equity-based, and loan-based are categories...

Question 14

__________________ crowdfunding is an extension of equity-based, loan-based, reward-based, and donation-based crowdfunding.

Accepted Answer

The answer of __________________ crowdfunding is an extension of equity-based,...

Question 15

Bootstrapping is a type of __________that can reduce costs from the current operation and overhead.

Accepted Answer

The answer of Bootstrapping is a type of __________that can...

Question 16

Having a source of __________ income while a company is getting started improves the chances of success.

Accepted Answer

The answer of Having a source of __________ income while...

Question 17

In some cases, entrepreneurs use _________ from previous endeavors to invest in their new enterprises.

Accepted Answer

The answer of In some cases, entrepreneurs use _________ from...

Question 18

________ is a form of financing that is usually available to entrepreneurs who are highly motivated and committed to using personal resources to launch a venture.

Accepted Answer

The answer of ________ is a form of financing that...

Question 19

When considering self-funding, carefully consider how much financial ________ you are willing to take.

Accepted Answer

The answer of When considering self-funding, carefully consider how much...

Question 20

Which of the following is NOT a type of crowdfunding?

Accepted Answer

The answer of Which of the following is NOT a...

Quiz 8: Launching and Financing Your Venture