Question

ANswer the following.

What are the benefits of a sole proprietorship?

A) Single owner and no responsibility

B) Sharing financial rewards with others

C) Single owner and full responsibility

D) None of the above

What is a distinctive factor of an S Corporation?

A) Profits and losses are distributed to stockholders and taxed as personal income

B) Dividends are cut quarterly

C) Founders must convert all of their shares as options

D) Everybody in the venture automatically gets stock

In a new venture business plan, investors want to see evidence of which of the following?

A) A well-defined robust market

B) A distinct product or service solution

C) A sensible business model

D) All of the above

What is the recommended format for an investor presentation?

A) The team, the customer, the opportunity, the solution, competitive positioning, business model, financial projections, go-to-market strategy, milestones

B) Customer, opportunity, solution, business model, financials, go-to-market strategy

C) Opportunity, business model, financials, milestones

D) None of the above

What are the stories that should be told in your investment presentation?

A) The story of the customer

B) The story of your team

C) The story of how you make money

D) The story of your key milestones upon financing

E. All of the above

Bootstrapping does not:

Show commitment to future investors

Require equity give-up

Create positive pressure on entrepreneurs to succeed

Force entrepreneurs to push products to market early on

Entrepreneurs typically possess ________.

A) the ability to easily access capital

B) a set of unique skills that is usually accompanied by advanced degrees in several areas

C) a high level of commitment, have a tolerance for ambiguity, are flexible and tenacious

D) specialized technical abilities

Creativity is ________ new things, and innovation is ________ new things.

A) thinking; doing

B) doing; thinking

C) seeing; doing

D) thinking; applying

93) Potential investors tend to believe that if an entrepreneur cannot develop a good plan, the entrepreneur ________.

A) is probably the action-oriented sort of person they need running a business

B) needs to hire a consultant to write the plan for him

C) probably lacks the discipline to run a business

D) is just like the majority of entrepreneurs and will probably do quite well

Answer 1

Answering the first 4 questions as per HOMEWORKLIB POLICY

What are the benefits of a sole proprietorship?

Answer: Option C - Single owner and full responsibility

Explanation: Sole proprietorship has unlimited liability and full profit and loss sharing. It has to bear the liabilities to a 100% extent.

What is a distinctive factor of an S Corporation?

Answer: Option A - Profits and losses are distributed to stockholders and taxed as personal income.

Explanation: S Corporation is not taxed and is an LLC. They have limited liability and the profits are taxed from the personal income of the stockholders.

In a new venture business plan, investors want to see evidence of which of the following?

Answer: Option D- All of the above

Explanation: Investors look into the 360-degree approach where there is demand for the product, an innovation in the product and a business model that works on efficiency and keeps a check on the cost-benefit analysis.

What is the recommended format for an investor presentation?

Answer: Option A - The team, the customer, the opportunity, the solution, competitive positioning, business model, financial projections, go-to-market strategy, milestones.

Explanation: The investor presentation is the way to persuade investors to put their money in our business. Hence, they need to know all the given criterion as specified above.