Funding and Finances_SBG

What does a higher and consistent Net Sales indicate?

• Poor demand for products/services

• Good demand for products/services

• Inability to generate cash flows

• High financial risk

How is Tangible Net Worth (TNW) calculated?

• Share Capital + Reserves and Surplus + Intangible Assets

• Share Capital - Reserves and Surplus - Intangible Assets

• Share Capital + Reserves and Surplus - Intangible Assets

• Share Capital - Reserves and Surplus + Intangible Assets

What does a low TOL/TNW ratio suggest?

• Conservative and stable financial structure

• High financial risk

• Poor demand for products

• Inability to generate cash flows

How is the Current Ratio calculated?

• Current Assets + Current Liabilities

• Current Assets - Current Liabilities

• Current Assets / Current Liabilities

• Current Liabilities / Current Assets

What additional support can angel investors provide besides capital?

• Legal representation

• Advice and feedback

• Office supplies

• Marketing campaigns

What is the potential outcome for one in fifteen investments made by VCs?

• Total loss

• Break even

• Bonanza that makes them rich

• Immediate profit

What might you be required to do regarding advice from your funder?

• Ignore it

• Take it, whether or not you agree

• Modify it

• Reject it

What is the primary benefit of a high Current Ratio?

• Demonstrates high market share

• Reflects low operational costs

• Shows high profitability

• Indicates strong liquidity position

What is a common risk associated with crowdfunding?

• High interest rates

• Loss of intellectual property

• Increased operational efficiency

• Immediate profitability

Which Informal credit sources invests in small businesses in exchange for ownership equity, can bridge the gap between loans from family and formal venture capital?

• Angel investors
• Microfinance institutions
• Crowdfunding platforms
• Peer-to-peer lenders