ck to Assignment attempts: Average: /B 4. Structuring the entrepreneurial firm (Connect, Perform) Think about the different ways entrepreneurs can start their businesses. Which of the following can an entrepreneur expect when starting a new business from scratch? Check all that apply. The entrepreneur's mistakes may cause the business lose money at first. The entrepreneur will be personally responsible for making most management decisions The business may take a very long time to become profitable. The entrepreneur will receive support and advice from a large organization in exchange for a management fee. Imagine you are opening a small business that sells soccer equipment to local intramural teams. However, to make your dream a reality, you need to have money for start-up costs and to cover expenses until the business generates revenue. You want to fully understand the benefits and obligations associated with each type of funding before making any decisions. Your lifelong friend, Kenji, plays several sports sponsored by the local Park and Recreation Department. Kenji is very excited about your plan to open a soccer shop and wants to support you in that endeavor. Kenji is not interested in working at the shop but has some savings and offered to make you a loan. Which of the following statements is true about using money from a friend to start a business? Check all that apply. Even though the money is coming from someone who knows you well and trust you, having a repayment plan and treating the loan as MacBook Air SO 888 DU FB F A $ 4 & 7 C 9 3 5 6 8 0 E R T Y U 1 0 P D F G H . J L apter 05: Assignment Entrepreneurship and New Venture Management Imagine you are opening a small business that sells soccer equipment to local intramural teams. However, to make your dream a reality, you need to have money for start-up costs and to cover expenses until the business generates revenue. You want to fully understand the benefits and obligations associated with each type of funding before making any decisions Your lifelong friend, Keny, plays several sports sponsored by the local Park and Recreation Department. Kenji is very excited about your plan to open a soccer shop and wants to support you in that endeavor. Kenji is not interested in working at the shop but has some savings and offered to make you a loan. Which of the following statements is true about using money from a friend to start a business? Check all that apply. Even though the money is coming from someone who knows you well and trusts you, having a repayment plan and treating the loan as a business agreement is wise. To start a new business, it will be easier to obtain a loan from Kenjithan to get a bank loan The best way for a friend to be supportive of your new business is to become a co-owner of the business, rather than making a loan. Borrowing money from a friend to start a business is never a good strategy, it usually results in disputes and harms the friendship. You have big plans for your first year of business, and you estimate you will need to borrow and spend approximately $1.5 million before your soccer shop becomes self-supporting. You have a friend who started her business with the help of loans guaranteed by the U.S. Small Business Administration (SBA). Which of the following statements are true? Check all that apply. If you cannot get a bank loan with reasonable terms, the SBA has many different landing programs for which your business might be eligible Not all SBA programs provide for $1.5 million in loans. The maximum amount available to your business will depend on the specific SBA program for which your business qualifies. If you cannot get a bank loan, the SBA guarantees that you will get a loan through one of its programs. MacBook Air DW DD ga F7 $ 4 C 9 3 ) 0 5 00. 6 7 1 E R T Y U 0 D F G H J L eligible Not all SBA programs provide for $1.5 million in loans. The maximum amount available to your business will depend on the specific SBA program for which your business qualifies. If you cannot get a bank loan, the SBA guarantees that you will get a loan through one of its programs. You know that entering into an agreement with a venture capital company involves significant trade-offs. Which of the following should you consider before seeking venture capital? Check all that apply. Aventure capital company usually receives an ownership interest in the business in exchange for its investment The goals of a venture capital company may be different from the goals of the entrepreneur who started the business. Venture capital companies are making a financial investment with the goal of earning a profit for themselves. Seeking funds from venture capital companies should be considered only as a last resort. Grade It Now Save & Continue Continue without saving MacBook Air DU DD 76 2 3 $ 4 % 5 ) 0 6 7 8 9 2 E W R P T Y U 0 S D F G H J J L | V B N M mmand command Op