30 Questions
Which of the following is a benefit of obtaining a bank loan for startups?
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What is invoice factoring?
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What type of companies are MRR lines of credit primarily for?
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What should startups consider before seeking debt financing?
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Which of the following is NOT a common legal challenge faced by startup founders?
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What is one of the services offered by CGL?
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What is the purpose of the disclaimer in the text?
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What is a key advantage of CGL's fully-distributed model?
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Which type of financing relies on private investors who pay funds into a startup in exchange for equity?
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What is one benefit of VC investment?
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Why is VC financing accessible for early-stage companies?
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What is one drawback of VC financing?
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Which of the following is a drawback of debt financing for startups?
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What is a major benefit of convertible notes as a type of debt financing?
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What is a key difference between SAFEs and convertible notes?
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Why do banks tend to be hesitant to provide traditional debt financing to startups?
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Which entity structure is preferred by investors for startups seeking VC or angel investor funding?
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Which entity structure provides limited liability and allows owners to take on debt and other legal obligations, while shielding their personal assets?
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Which entity structure is subject to double taxation, meaning founders need to pay taxation at the company level and again as personal income when company revenue is paid to them?
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Which entity structure is commonly chosen by accounting, tax, and law firms, as well as manufacturers like Pepsi-Cola, Nike, and IBM?
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Under federal taxation law, what requirements must a corporation meet to qualify for S-Corp status?
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What is the purpose of a Benefit Corporation?
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What are the benefits of B-Corp status?
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What are the benefits of debt financing for startup founders?
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Which type of investors may want to interfere in day-to-day management of a startup?
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What is a potential risk for founders when receiving a terms sheet from an investor?
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What is the cost of equity compared to debt?
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What is a potential solution to mitigate the risk of founders not understanding the terms sheet?
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Who should founders partner with to understand the terms sheet?
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What is a potential downside of ceding too much equity to investors?
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Quiz: Test Your Knowledge on Understanding Legal Terms for Startups
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