Entr.2B U6L2

Which type of financing involves selling company shares?

• Debt financing

• Equity financing

• Loan financing

• Revenue financing

Which of the following is a benefit of negotiating loan terms?

• Higher interest rates

• More flexible repayment options

• Increased loan amount

• Longer loan processing time

What is a benefit of securing a line of credit?

• Only pay interest on what you use

• Fixed monthly payments

• No borrowing limit

• Guaranteed approval

What is an advantage of raising money through personal investors?

• Trust and familiarity

• No need for repayment

• High return on investment

• Complete control of the business

What can be adjusted in a loan to find a satisfactory amount?

• Number of payments

• Business ownership

• Investor trust

• Company control

What can happen to relationships if business partners can't agree on how to operate the company?

• They can become stronger.

• They can become strained or soured.

• They can become more profitable.

• They can become irrelevant.

What has been broken over failed business investments?

• Many bonds between family and friends.

• Many financial records.

• Many business contracts.

• Many technological devices.

What is a potential consequence of failed businesses mentioned in the text?

• Increased profits.

• Broken friendships.

• New opportunities.

• Improved communication.

What is the most common option for sourcing equity financing from people you may not know?

• Angel investment

• Venture capital

• Bank loans

• Crowdfunding

Who is an angel investor?

• A person who provides loans

• A wealthy individual providing capital for ownership

• A government official

• A bank representative