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ENT3003 Test 4
| Question | Answer |
|---|---|
| Debt financing | obtaining borrowed funds for the compnay. Involves an interest-bearing instrument, usually a loan, the payment of which is only indirectly related to the sales and profits of the venture |
| Equity financing | obtaining funds for the company in exchange for ownership. Does not require collateral and offers the investor some form of ownership in the company |
| asset base for loans | tangible collateral valued at more than the amount of money borrowed |
| conventional bank loan | standard way banks lend money to companies |
| research and development limited partnerships | money given to a firm for developing a technology that involves a tax shelter |
| Limited partnership | a party in a partnership agreement that usually supplies money and has a few responsibilities |
| general partner | the overall coordinating party in a partnership agreement |
| SBIR grants program | grants from the US government to small technology-based businesses |
| private offering | a formalized method for obtaining funds from private investors |
| regulation D | laws governing a private offering |