Entrepreneurship Ch. 9 Review

Your company's debt-to-equity ratio measures how much money a company can safely borrow over time.

An income statement shows revenues that you have received and expenses that you have paid.

A bank may turn down a loan application for a new business because the entrpreneur

To calculate your net worth, you should prepare pro forma financial statement.

A high debt to equity ratio indicates that a business

The cost of the inventory that a business sells during a particular period is called cost of goods sold.

On a balance sheet, buildings and furniture would be included as

Loans and account payable are examples of liabilities.

Interest earned from bank accounts is considered revenue.

A business that has more assets than liabilities has negative net worth.

Inventory is a type of fixed asset because it is used up in normal business operations.

Unsecured loans are

The Small Business Administration (SBA) does not make direct loans

The assets, liabilities, and owner's equity of a business are shown on a

Businesses can avoid all possible risks by purchasing insurance

Net worth is the difference between items of value that your own and amounts you owe to others.

Which of the following is NOT a risk associated with doing business in another country?

In the accounting equation, assets must always equal

Before you can approach a lender or investor about financing your business, you must prepare all of the following except

Venture capitalists are individuals or companies that

Items of value that you own are called

A mortgage is a type of

a bank usually will loan a business up to 50 % of the accounts receivable value if it feels that it's a good credit risk

An income statement is sometimes called a profit/loss statement

Depreciation is included on a business balance sheet to show that some

Conducting a risk assessment involves all of the following actions except

Entreprenuers who do not qualify for financing may turn to other sources for equity capital. All apply except.....

Banks require collateral for most unsecured loans.

Venture capitalists are interested in companies that have potential of earning hundreds of dollars within a few years.

A cash flow statement shows a business's revenues and expenses over a period of time resulting in profit or loss

Equity capital does not include money invested by the owner of the business.

Debt capital is money invested in a business in return for a share in the profits of the business

If you are leasing a building for your business operation, you do not need to buy insurance, the owner carries it.