Entrepreneurial Finance MCQs

Question: What is the primary source of financing for most startups in their early stages? a) Venture capital b) Angel investors c) Bank loans d) Personal savings Answer: d) Personal savings Question: Which type of financing involves exchanging ownership equity for capital investment in a startup? a) Debt financing b) Equity financing c) Crowdfunding d) Peer-to-peer lending Answer: b) Equity financing Question: What is the term used for funds provided by individuals or firms who invest in startups in exchange for potential financial return? a) Venture capital b) Seed funding c) Angel investment d) Crowdfunding Answer: c) Angel investment Question: Which type of financing involves obtaining funds from multiple individuals or entities through an online platform? a) Venture capital b) Seed funding c) Crowdfunding d) Angel investment Answer: c) Crowdfunding Question: What is the term for funds raised from family and friends to support the initial stages of a startup? a) Seed funding b) Series A funding c) Venture capital d) Angel investment Answer: a) Seed funding Question: Which financing option involves borrowing money from financial institutions or individuals with the promise to repay with interest? a) Equity financing b) Debt financing c) Crowdfunding d) Angel investment Answer: b) Debt financing Question: What is the term for funds provided by venture capital firms to startups in exchange for equity ownership? a) Seed funding b) Angel investment c) Venture capital d) Crowdfunding Answer: c) Venture capital Question: Which type of financing involves selling future receivables to a finance company at a discount? a) Factoring b) Venture capital c) Crowdfunding d) Angel investment Answer: a) Factoring Question: What is the term for funds raised from selling a company’s future products or services at a discount? a) Factoring b) Revenue-based financing c) Equity financing d) Debt financing Answer: b) Revenue-based financing Question: Which financing option allows startups to obtain small loans from a large number of individuals through online platforms? a) Factoring b) Revenue-based financing c) Peer-to-peer lending d) Equity crowdfunding Answer: c) Peer-to-peer lending Question: What is the primary source of financing for most startups in their early stages? a) Venture capital b) Angel investors c) Bank loans d) Personal savings Answer: d) Personal savings Question: Which type of financing involves exchanging ownership equity for capital investment in a startup? a) Debt financing b) Equity financing c) Crowdfunding d) Peer-to-peer lending Answer: b) Equity financing Question: What is the term used for funds provided by individuals or firms who invest in startups in exchange for potential financial return? a) Venture capital b) Seed funding c) Angel investment d) Crowdfunding Answer: c) Angel investment Question: Which type of financing involves obtaining funds from multiple individuals or entities through an online platform? a) Venture capital b) Seed funding c) Crowdfunding d) Angel investment Answer: c) Crowdfunding Question: What is the term for funds raised from family and friends to support the initial stages of a startup? a) Seed funding b) Series A funding c) Venture capital d) Angel investment Answer: a) Seed funding Question: Which financing option involves borrowing money from financial institutions or individuals with the promise to repay with interest? a) Equity financing b) Debt financing c) Crowdfunding d) Angel investment Answer: b) Debt financing Question: What is the term for funds provided by venture capital firms to startups in exchange for equity ownership? a) Seed funding b) Angel investment c) Venture capital d) Crowdfunding Answer: c) Venture capital Question: Which type of financing involves selling future receivables to a finance company at a discount? a) Factoring b) Venture capital c) Crowdfunding d) Angel investment Answer: a) Factoring Question: What is the term for funds raised from selling a company’s future products or services at a discount? a) Factoring b) Revenue-based financing c) Equity financing d) Debt financing Answer: b) Revenue-based financing Question: Which financing option allows startups to obtain small loans from a large number of individuals through online platforms? a) Factoring b) Revenue-based financing c) Peer-to-peer lending d) Equity crowdfunding Answer: c) Peer-to-peer lending