Question

Primary research is:

original research and is collected by the entrepreneur

research that is already collected and is available online

research that is stored in an official government depository

research that is collected by an impartial third party

research that is collected by an industry trade association

Which of the following is not one of the components of a firm's business model?

core strategy

strategic resources

partnership network

business plan

customer interface

A firm's pro forma financial statements are similar to its historical financial statements except that:

they do not include the income statement

they are required by the SEC in all cases

they look back rather than forward

they look forward rather than back

they do not include the statement of cash flows

Which of the following is not considered as a way that lenders and investors add value to a new venture, beyond providing money?

help the firm fine-tune its business model

serve on the firm's board of directors or board of advisors

recruit customers

help identify and recruit key management personnel

help manage the day-to-day activities of the firm

The seed money that gets a company off the ground typically comes from:

angel investors

venture capitalists

commercial banks

governmental agencies

the founders of the firm

Equity financing (or funding) means:

exchanging partial ownership in a firm, usually in the form of stock, for funding

getting a grant or outright gift

getting a loan

getting a lease

getting a loan guarantee

Answer 1

1. Primary research is the original research collected by the entrepreneur himself. Data is first hand which is collected directly from the source with the help of questionnaire, interviews, field surveys, etc.

2. Customer Interface is not the component of Firm’s business model. All other options like core strategies, strategic resources, and partnership network and business plan are the part of a firm’s business model.

3. A firm’s pro forma financial statements are similar to historic financial statements except they look forward rather than back. In Pro financial statements projections are made for the next year for results which is helpful for both internal as well external investors and creditors.

4. Other than providing money, help in managing the day to day activities of the firm is not considered as a part of lenders and investors to add value in the business venture.

5. The seed money comes from the founder of the firm. He is the one who invests highest in the company.

6. Equity funding is exchanging partial ownership in the firm usually in the form of stock. Companies issues shares and raise capital from public.