College of Business Administration

Colon St., Cebu City

Tel No.: 416-8321/416-8336
 

NAME :RONECEL O. CAJES COURSE & YEAR :BSA-1

SUBJECT : CBM 111 TIME/DAYS/ROOM: 1:00-2:30pm/MW/206V

INSTRUCTOR : PHILIP M. ALMANON, MBA DATE SUBMITTED: 6/24/18

Topic : An Overview of Marketing

1. What are the five stages of a business life cycle? Do all companies go through
all five stages?

 The five stages of a business life cycle are Start-up, Growth, Maturity,
Decline, and Closing.
 No, not all companies go through all the five stages. Business life cycle vary
considerably. Some firms go through the early stages fairly rapidly and
then settle into maturity for a long time, while others skip to the closing
stage in a few years.

2. According to the U.S. Census Bureau’s Business Information Tracking System,

what is the failure rate of companies over the first six years?

 The U.S. Census Bureau’s Business Information Tracking System estimates

that roughly 60% of business that employ others besides the owners will
close within their first 6 years.

3. What is the function of the Small Business Administration in regard to business

loans? Who receives the guaranty on the loans?

 The Small Business Administration (SBA) is a government agency with

three different loan programs designed to cover a wide array of businesses
and their particular need.
 The partners are commercial banks that receive some guaranty from the
SBA.
4. What is the difference between an angel investor and a venture capitalist?
What event do these investors want to see happen? Why?

5. What is a letter of credit or line of credit? How does it work?

 A letter of credit or line of credit is a preapproved borrowing amount that

works much like a credit card. The company can borrow money at a preset
rate from the bank at anytime without seeking additional approval of the
loan each time it needs funds.

6. What is the role of investment bank in selling bonds?

 An investment bank is an agent that works with the firm to meet all the
listing requirements of the bond issue, the design of the bond terms, the
marketing of the bond, and auction of the bond.

7. What is the role of investment bank in selling stock?

 The investment bank partners with the company and guides it through the
selling process. They are require to perform due diligence in making sure
all information released during the process is accurate and all material
information has been released. Failing to perform this due diligence task
puts the investment bank and the company at risk for litigation after the
sale of the stock.

8. What is commercial paper? Why does it not need SEC approval?

 Commercial paper is issued for commercial purposes; it is a discounted

note sold by a company directly to an investor with both principal and
interest repaid within 270 days.


9. Bankers acceptance supports lending for what type of activities? Explain how
collateral works in a banker’s acceptance arrangement.

10. What is the difference between Chapter 7 and Chapter 11 bankruptcies? Why
might Chapter 11 be better for claimants than Chapter 7?

 Chapter 7 of the federal bankruptcy Reform Act (1978) is the process that
has to be followed when a firm decides to close its business and liquidate
its assets