Trevon is opening a cookie bakery in his small town. He is saving the funds he needs to open his business and is considering crowdsourcing the last $10,000. What should he offer investors?
(1 point)
Responses
money back with interest
money back with interest
a percentage of his business
a percentage of his business
a gift certificate for his business
a gift certificate for his business
Nothing—they are donating money.
a percentage of his business
Which of these might have helped minimize the impact that the changing marketplace had on Toys ‘R’ Us?
(1 point)
Responses
expanding and selling non-toy items
expanding and selling non-toy items
keeping more inventory on store shelves
keeping more inventory on store shelves
developing strategies to compete with online retailers earlier
developing strategies to compete with online retailers earlier
having more sales so high volume would compensate for low profits
developing strategies to compete with online retailers earlier
Jennifer’s business has been open for two years. She is hoping that her new marketing plan will increase sales because she would really like to hire an assistant. If sales are up for six months in a row, she will be comfortable bringing on another employee. Which principle of financial planning does this illustrate?
(1 point)
Responses
pay debts
pay debts
return for investors
return for investors
finance future growth
finance future growth
accurately document finances
finance future growth
Which is the best example of providing a return for investors?
(1 point)
Responses
hoping to expand the business at a later point
hoping to expand the business at a later point
not taking on debt at any point in the business
not taking on debt at any point in the business
providing the required financial reports to investors
providing the required financial reports to investors
managing finances to meet long-term financial goals
providing the required financial reports to investors
Tressie’s niece wants to open a boutique household goods store. Tressie has read her business plan and is quite impressed. She is considering acting as an angel investor and giving her niece the $10,000 she needs to secure the retail space and some of the inventory for her store. What should Tressie expect in return?
(1 point)
Responses
Her niece will begin paying her back the immediately.
Her niece will begin paying her back the immediately.
Her niece does not need to pay her back at all because it is a gift.
Her niece does not need to pay her back at all because it is a gift.
Her niece will expect regular $10,000 contributions to her business.
Her niece will expect regular $10,000 contributions to her business.
Her niece might offer her a small share of the business or pay her back slowly.
Her niece might offer her a small share of the business or pay her back slowly.
Question
Trevon is opening a cookie bakery in his small town. He is saving the funds that he needs to open his business and is considering crowdsourcing the last $10,000. He has already saved $60,000 to buy the needed equipment and get through a few slow months. A friend suggests that he find a venture capitalist. Is this a good suggestion?
(1 point)
Responses
No, venture capitalists are only for tech businesses.
No, venture capitalists are only for tech businesses.
No, venture capitalists tend to invest in higher risk businesses.
No, venture capitalists tend to invest in higher risk businesses.
Yes, they will likely want to invest much more than the $10,000 he needs.
Yes, they will likely want to invest much more than the $10,000 he needs.
Yes, this is exactly the kind of innovated business venture capitalists prefer.