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B.E. Chapter 19 - Financing Your Business Flashcards | StudBud
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B.E. Chapter 19 - Financing Your Business
B.E. Chapter 19 - Financing Your Business
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B.E. - Chapter 19 - Financing Your Business
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Answers
1
An IPO is
an Individual Private Offering
an Initial Possible Offering
an Initial Public Offering.
an Investment Private Offering
2
A lender lends up to a specific amt. at a certain interest rate for a definite time period.
A line of credit
An equity loan
A capital loan.
A short term loan.
3
Who provides funding to bus. owners who are at least 51% ethnic minority, female or disabled?
MESCIBs
MSEBICs
MESBICs
MBSCIEs
4
The money used to support operations in the short term is called
short term capital.
personal capital.
operating capital.
debt capital.
5
Security in the form of assets that a company pledges to a lender is called
equipment
credit
collateral
capital
6
Operating costs are often referred to as
capital expenses.
start-up costs.
liabilities.
working capital.
7
Which of the following would not be estimated in your start-up costs?
Working Capital
Contingency Funds
Capital Expenditures
Insurance Costs
8
Cash raised for a business in exchange for an ownership stake in the business is called
capital
risky.
equity capital.
partnership.
9
Which of the following is not one of the five 'Cs' Bankers use to grant a loan?
Character
Credit
Collateral
Capacity
10
If the Small Bus. Admin. approves your request for a loan, it guarantees repayment of up to
a maximum of 50% of the loan.
a maximum of 80% of the loan.
a maximum of 90% of the loan.
a maximum of 75% of the loan.
11
An example of a capital expenditure would be
equipment.
utilities.
insurance.
property taxes.
12
The main source of start-up money for an entrepreneur is
personal resources.
partners.
local Banks.
private investors.
13
What is usually the greatest single expense of a business?
Employees.
Spouse.
Equipment.
Facilites
14
When a business does borrow money, entrepreneurs should contribute
more than half of the start-up capital.
less than half of the start-up capital.
at least 75% of the start-up capital.
no more than 25% of the start-up capital.
15
A nonprofessional private investor who funds start-up companies is called
an angel.
partner.
a risk taker.
savior.
16
In order for a Bank to make a loan it will examine a company's
cash flow.
credit rating.
accounts receivable.
equity.
17
An agent who handles an entrepreneur's accounts receivable for a fee is called a
CPA
factor.
Purchasing Agent.
Accountant.
18
Money raised by taking out loans is called
debt capital.
equity capital.
non-cash capital.
credit capital.
19
Businesses grant -- -- to other businesses for purchase of goods or services.
Trade credit
Business credit
Credit lines
Equity loans
20
When you operate as frugally as possible and cut all unnecessary expenses it is called
conservation.
being cheap.
bootstrapping.
shoestrapping
21
There were two types of skill sets suggested that should be aquired early up in a new business
they were an Accountant & a Supply Chain Manager.
they were a CEO & a COO.
they were an Accountant & an Attorney.
they were a H.R. Manager & an Accountant.
22
An investigation and analysis a prudent investor does before investing is called a
Business Plan analysis.
credit report
due diligence.
due allegiance.
23
When entering a partnership, always
shake hands after spitting in your palms.
put an agreement in writing & reviewed by an attorney.
do a background check on your partner.
have a witness to the verbal agreement.
24
Once you have undertaken an IPO, your company is no longer
public.
sophisticated.
protected.
private.
25
One time expenses like equipment, furniture, and fixtures are called
start-up costs.
capital expenditures.
capital investments.
business expenses.
26
Normal Venture Capitalists want at least
10 times return on their investment in about 5 to 7 years.
15 times return on their investment in about 5 to 7 years.
2 times return on their investment in 3 to 5 years.
5 times return on their investment in about 4 to 8 years.
27
What is not part of the financial road map for a business?
Income statements
Credit rating
Cash flow statements
Balance Sheets
28
Source of equity financing with exceptional growth potential & experienced senior management is
a venture capitalist.
a credit union.
a family friend.
an angel.
29
An extra amount of money requested, saved and used only in an emergency is called
nest egg fund.
slush fund.
an emergency fund.
a contingency fund.
30
A type of security that signifies ownership in a corporation is called
deed.
collateral.
stock.
capital.
