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