Assignment
Part 1
Answer the following:
1. How are most small businesses initially financed?
2. What are the advantages of trade credit over a bank loan?
3. What is collateral? How is it used in a small business loan?
4. Identify the two ways in which eBay's growth was financed?
5. What is an IPO?
6. What is the general principle of matching of assets and financing?
7. Describe Growth 2 of the Life-Cycle of Financing
Part 2
1. What are Money Markets?
2. Define the Primary Market
3. Define the Secondary Market
4. What are the major features of common stock?
5. What is preferred stock?