Marianne, Who Has Started a Software Development Firm, Is Looking

question 16

Multiple Choice

Marianne, who has started a software development firm, is looking for sources of financing. Marianne has approached Zenith LLC., a large consulting firm, to partner with her venture. Zenith has agreed to partner with Marianne's venture and provide it with capital. In this scenario, Marianne's source of financing falls in the category of:

• A) personal resources.
• B) government loans.
• C) strategic alliances.
• D) Small Business Administration loans.
• E) venture capital companies.

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Definitions:

Permanent/Temporary

Refers to accounts on a company's balance sheet that are carried over from one accounting period to the next, with permanent indicating long-term accounts and temporary indicating accounts that are closed at the end of each period.

Coal Deposit

A geological formation containing a natural accumulation of coal, which can be mined for use as a fuel.

Tons Available

A measurement indicating the quantity of a commodity or material expressed in tons that is available for use or sale.

Normal Balance

The side of an account (debit or credit) on which increases to the account are recorded.