Entrepreneurial Finance 6th Edition by J. Chris Leach test bank

         b.   the debtholders
         c.   the venture equity investors
         d.   both a and b
         e.   both a and c
 
a.        11.  Which of the following is considered to be an “agency” conflict?
     a.   owner-manager conflict
     b.   stockholder-manager conflict
     c.   stockholder-debtholder conflict
     d.   manager-debtholder conflict
 
a.        12.  Which one of the following possible conflicts of interest is usually minimized through the use of equity incentives?

1.  owner-manager conflicts
2.  owner-employee conflicts
3.  manager-employee conflicts
4.  manager-debtholder conflicts

 
d.      13.  Which one of the following possible conflicts of interest increases in divergence at venture gets close to bankruptcy?
a.   owner-manager conflict
b.   owner-employee conflict
c.   manager-employee conflict
d.   manager-debtholder conflict
 
d.        14.  Which of the following is not a life cycle stage of a successful venture?
   a.   development stage
            b.   startup stage
   c.   survival stage
   d.   cash cow stage
   e.   early-maturity stage
 
c.        15.  Which of the following does not describe activity during the venture’s life cycle startup stage?
               a.   venture’s organization
               b.   venture’s development
               c.   operating cash flows are generated
               d.   initial revenue model is put in place
 
a.        16.  At which stage of the venture’s life cycle stage is best characterized by the period when revenues start to grow and when cash flows from operations begin covering cash outflows?
          a.   survival stage
          b.   startup stage
          c.   rapid growth stage
          d.   early-maturity stage
 
b.        17.  Which is not a major source of start-up financing for a venture’s startup stage?
          a.   entrepreneur’s assets
          b.   business operations
          c.   family and friends
          d.   business angels
          e.   venture capitalists
 
d.        18.  Obtaining bank loan, issuing bonds, and issuing stock is characteristic of which type of financing during the venture’s life cycle?
             a.   seed financing
             b.   second round financing
             c.   mezzanine financing
             d.   seasoned financing
             e.   liquidity stage financing
 
c.        19.  During a venture’s rapid growth stage, funds for plant expansion, marketing expenditures, working capital, and product or service improvements is obtained through?
                      a.   seed financing