Chapters 2D and 2G

Question 1

Identify one cost of purchasing an existing business.

Accepted Answer

Previous success from old owner

Question 2

Grant - Sam does not mind having less control over her company, as long as she is receiving a reasonable sum of money.

Accepted Answer

False

Question 3

Identify one benefit of starting up a business from scratch.

Accepted Answer

Owners have complete control

Question 4

One cost of starting up a business from scratch is that it takes time to build a customer base.

Accepted Answer

True

Question 5

Hayley wants a short-term source of finance and doesn't mind if interest rates are high. This is an overdraft facility.

Accepted Answer

True

Question 6

Money put into a business by an investor in return for a share.

Accepted Answer

Equity Capital

Question 7

Money that can be withdrawn below $0 through an agreement, but paid with high interest quickly.

Accepted Answer

Overdraft Facility

Question 8

Money you loaned and eventually need to pay back with interest over different terms.

Accepted Answer

Debt Capital

Question 9

One benefit of purchasing an existing business is the relationships between the business and its customers.

Accepted Answer

True

Question 10

Money gifted to a business for a specific purpose and does not need to be paid back.

Accepted Answer

Grant

Questions 10