Financing the Venture

The following are the three forms of capital, except:

• Fixed Capital

• Working Capital

• Growth Capital

• Variable Capital

This is needed when an existing business is set to expand, diversify, or change its directions.

• Fixed Capital

• Working Capital

• Growth Capital

• Variable Capital

In a corporation, the contribution of the owner to the capital of the business is called _________ and is evidenced by the issuance of stockholder's certificate issued by the corporation.

• capital

• equity

• investment

• money

It takes the form of fund generation by way of pledging a designated property as security or collateral for the loan.

• mortgage

• bonds

• long-term commercial paper

• commercial banks

The following are example of short-term creditors, except:

• commercial banks

• merchandise suppliers

• credit card companies

• mortgage houses

A private and for-profit organizations that provide funds to new business ventures by way of purchasing equity positions in new or young businesses believed to have potentials to produce maximum returns within short period of time.

• Commercial Banks

• Angel Investors

• Venture Capital Companies

• Lending Investors

These are forms of indebtedness of the issuing company that promises a fixed amount of interest to the bondholders upon maturity or call by its holders.

• mortgage

• bonds

• long-term commercial paper

• commercial banks

Angel investors charged interest to the money lent to the business owner.

• True

• False

Working capital represents the money or hard cash to support its normal short-term operations.

• True

• False

External fund sources generally refers to the funds which are owned by the entrepreneur himself or the company.

• True

• False