Assignment

Question 1
The largest cost in a public stock offering is:

printing expenses.
filing fees with the SEC.
the underwriter's commission.
legal fees.

Question 2
The "wait to go effective" is the time period when:

the SEC registration statement is being prepared.
the underwriter decides what regulation to file under.
the firm prices the stock for the offering.
the company is waiting for SEC approval after filing the registration statement.

Question 3
________ financing includes the personal investment of the owners and is often called "risk capital."

Equity
Asset-based
Debt
Growth

Question 4
The outstanding publicly held stock is also called:

the public float.
equity stock.
preferred stock.
available float.

Question 5
Working capital can be calculated by:

Current Asset - Current Liabilities.
Total Asset - Current Liabilities.
Total Liabilities - Total Asset.
Total Asset - Total Liabilities.

Question 6
The formal underwriting agreement is signed:

on the last day before the registration statement becomes effective.
when the statement of registration is filed.
during the road show.
at the time of the letter of intent.

Question 7
A foreign stock market that caters to small companies is:

AIM.
AMX.
the NASDAQ.
DPOX.

Question 8
The single most important ingredient in making a successful public offering is:

choosing a capable underwriter.
negotiating a favorable letter of intent.
preparing a suitable registration statement.
filing Regulation D with the SEC.

Question 9
________ is any form of wealth used to produce more wealth.

Debt
Equity
Capital
Capacity

Question 10
In a public offering, the underwriter:

advises the owner as to the best structure of the business going into the sale.
serves as an adviser and consultant to the small business in preparing the registration statement for the SEC.
is bound to the offering until it is executed.
is listed as one of the officers of the company.

Question 11
The two factors that make a deal attractive to venture capitalists are:

effective marketing strategies and networking opportunities.
high returns and a convenient (and profitable) exit strategy.
high returns and networking opportunities.
a convenient and (profitable) exit strategy and effective marketing strategies.

Question 12
Regulation A is best suited when a company is at the ________ stage.

startup
early
expansion
later

Question 13
When filing with the SEC, the initial registration statement:

prohibits a "road show."
is filed without share price, proceeds, or commissions listed.
signals the time to sign the formal underwriting agreement.
is generally accepted without corrections by the SEC.

Question 14
It typically takes ________ to take a company public.

30 days
one year
60 to 180 days
two weeks

Question 15
________ governs private placements and is designed to reduce the registration requirements for small companies going public.

Regulation D
Form SB
Form S-1
Regulation A.