A Study Done by the Small Business Administration (SBA) Office

question 1

Multiple Choice

A study done by the Small Business Administration (SBA) Office of Advocacy in 2011 found that _____ firms changed their legal form in the first four years of their existence.

• A) 2 out of 5
• B) nearly 35 percent of
• C) more than 50 percent of
• D) fewer than 1 in 10
• E) more than 25 percent of

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Definitions:

Convertible Debt

A form of short-term borrowing that can be turned into equity, typically a predetermined number of shares, either upon future financing or at the discretion of the investor.

Control

pertains to the power to influence or direct people's behavior or the course of events.

Founding CEOs

The chief executive officers who initiate and establish the foundation of a company or organization.

Minority Angel Funding

Investments made by angel investors who are part of a minority group, or investments made in startups led by individuals from minority groups.