When Searching for Capital to Launch Their Companies, Entrepreneurs Should

question 46

Multiple Choice

When searching for capital to launch their companies, entrepreneurs should remember several "secrets" to successful financing. Which of the following is not one of those secrets?

• A)Choosing the right sources of capital can be just as important as choosing the right form of ownership or the right location.
• B)The money is out there, but the key is knowing where to look.
• C)Creativity counts when searching for financing.
• D)Raising money should not take very long therefore, if it does not come quickly, it probably will not come at all.

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Definitions:

Discounting Note Receivable

The process of reducing the value of a note receivable to reflect its current worth by applying an interest rate.

Endorsing Note

A legal act of signing the back of a negotiable instrument, such as a check, to assign its benefits to another party.

Bank Discount Rate

The interest rate at which a country's central bank lends money to domestic banks, often used as a benchmark for other interest rates.

Proceeds of the Note

The total amount of money received from issuing a note payable, including the principal and any interest.