©NINJANERD 2024/2025. YEAR PUBLISHED 2024.
Finance Accounting Final Exam Review
Questions and Answers 100% Solved
When hiring a third party service provider, which of these are important
things to establish before beginning any work? - ✔✔Establish active lines
of communication
Intellectual property rights and uses (who owns the work once it is all
completed)
Pricing and timeline, along with expected tasks to be completed (scope of
work
When hiring a freelancer, it is important to protect your valuable intellectual
property because _______. - ✔✔They may copy or steal your proprietary
information.
Grants are usually given as "Awards" or "Gifts" and do not have to be paid
back to the issuer ever. - ✔✔True
This type of funding usually requires some sort of collateral or proof of
income in order to be considered. - ✔✔Debt
,©NINJANERD 2024/2025. YEAR PUBLISHED 2024.
How many companies actually receive capital from outside investors, such
as angel funds or venture capitalists? - ✔✔Less than 5%
Which of these is usually not a reason that you would consider using
outsourcing for your business? - ✔✔To find new investors
Which of these is considered a disadvantage of using equity to finance a
business? - ✔✔You have to give up a portion of existing ownership
(dilution), which may ultimately be worth much more in the future
Which of these is a disadvantage of debt? - ✔✔You have to pay back debt
with interest. If it is a high rate or compounds frequently, it could result in
significant interest expense over the life of a debt.
Which of these is not a benefit of a priced round or offering (meaning the
investor and company agreed to a specific price per share of equity sold to
the investor at the time of investment)? - ✔✔Requires significant
negotiation and legal documentation, more time.
Which of these is not an advantage to using a convertible note (meaning
the company and investor will agree to broader terms, but equity will not be
issued to the investor until the company raises a priced round in the future
or the note reached maturity)? - ✔✔There are terms, but it is difficult to
, ©NINJANERD 2024/2025. YEAR PUBLISHED 2024.
understand what was received for the investment until it is converted to
equity in the future.
What is crowdfunding? If you were to use this strategy, what steps would
be important to a successful crowdfunding campaign?
Briefly, what is the primary difference between equity crowdfunding in
comparison to "traditional" crowdfunding? - ✔✔Sourcing funds from the
public, either through donations or pre-orders, or by offering specialized
opportunities (sponsorship/naming rights/temporary roles/limited edition
items or apparel/long-term discounts).
Equity crowdfunding is a much more modern approach that allows
investors to participate in early stage opportunities, even if they are non-
accredited investors.
What is an accredited investor? Who regulates that investors need to be
accredited (federal agency) in order to participate in riskier investments?
Briefly describe. List three of the ways someone would qualify as an
accredited investor. - ✔✔SEC regulates.
Net worth over $1M not including primary residence.
Finance Accounting Final Exam Review
Questions and Answers 100% Solved
When hiring a third party service provider, which of these are important
things to establish before beginning any work? - ✔✔Establish active lines
of communication
Intellectual property rights and uses (who owns the work once it is all
completed)
Pricing and timeline, along with expected tasks to be completed (scope of
work
When hiring a freelancer, it is important to protect your valuable intellectual
property because _______. - ✔✔They may copy or steal your proprietary
information.
Grants are usually given as "Awards" or "Gifts" and do not have to be paid
back to the issuer ever. - ✔✔True
This type of funding usually requires some sort of collateral or proof of
income in order to be considered. - ✔✔Debt
,©NINJANERD 2024/2025. YEAR PUBLISHED 2024.
How many companies actually receive capital from outside investors, such
as angel funds or venture capitalists? - ✔✔Less than 5%
Which of these is usually not a reason that you would consider using
outsourcing for your business? - ✔✔To find new investors
Which of these is considered a disadvantage of using equity to finance a
business? - ✔✔You have to give up a portion of existing ownership
(dilution), which may ultimately be worth much more in the future
Which of these is a disadvantage of debt? - ✔✔You have to pay back debt
with interest. If it is a high rate or compounds frequently, it could result in
significant interest expense over the life of a debt.
Which of these is not a benefit of a priced round or offering (meaning the
investor and company agreed to a specific price per share of equity sold to
the investor at the time of investment)? - ✔✔Requires significant
negotiation and legal documentation, more time.
Which of these is not an advantage to using a convertible note (meaning
the company and investor will agree to broader terms, but equity will not be
issued to the investor until the company raises a priced round in the future
or the note reached maturity)? - ✔✔There are terms, but it is difficult to
, ©NINJANERD 2024/2025. YEAR PUBLISHED 2024.
understand what was received for the investment until it is converted to
equity in the future.
What is crowdfunding? If you were to use this strategy, what steps would
be important to a successful crowdfunding campaign?
Briefly, what is the primary difference between equity crowdfunding in
comparison to "traditional" crowdfunding? - ✔✔Sourcing funds from the
public, either through donations or pre-orders, or by offering specialized
opportunities (sponsorship/naming rights/temporary roles/limited edition
items or apparel/long-term discounts).
Equity crowdfunding is a much more modern approach that allows
investors to participate in early stage opportunities, even if they are non-
accredited investors.
What is an accredited investor? Who regulates that investors need to be
accredited (federal agency) in order to participate in riskier investments?
Briefly describe. List three of the ways someone would qualify as an
accredited investor. - ✔✔SEC regulates.
Net worth over $1M not including primary residence.
