Capital sources that trade cash for some portion of ownership in the business; sometimes called risk capital because the investor puts his/her money at risk.
What is Equity sources?
100
Cooperatives formed by labor unions or employees for the benefit of the members.
What is Credit unions?
100
A local doughnut shop incurs a number of expenses during the month to keep the business running. Which is an expense that will change from week to week or month to month?
1-Cost of baking ingredients
2-Insurance fees
3-Office salaries
4-Rent payments
What is Cost of baking ingredients?
100
A line of credit is:
1-A prearranged loan at an established rate available whenever the business owner needs it.
2-An interest-free loan.
3-An unsecured loan.
4-Funding that requires no collateral.
What is A prearranged loan at an established rate available whenever the business owner needs it?
200
Cash that is set aside for unexpected needs of the business.
What is Contingency fund?
200
Willing and able to repay a debt.
What is Credit-worthy?
200
A loan that is backed by collateral.
What is Secured loan?
200
Expenses that do NOT remain the same from month to month are:
1-Fixed costs.
2-Fixed revenue.
3-Variable costs.
4-Variable sales.
What is Variable costs?
200
Borrowed money that is repayable over a period longer than a year.
What is Long-term loan?
300
The cost of doing business; all business expenses except the cost of goods sold.
What is Expenses?
300
Operated by the government to provide technical assistance, counseling, grants, or other means of financial assistance at low-interest rates.
What is Government agencies?
300
Borrowed money that must be repaid within one year.
What is Short term loan?
300
Expenses that are NOT affected by sales volume are called:
1-Fixed costs.
2-Fixed revenue.
3-Variable costs.
4-Variable sales.
What is Fixed costs?
300
21.The most common source of business financing is a:
1-Bank.
2-Credit union.
3-Family member.
4-Government agency.
What is Bank?
400
One-time expenses an entrepreneur incurs when starting a business.
What is Start up costs?
400
Short-term financing that allows an entrepreneur credit from vendors within the business’s industry or trade.
What is Trade credit?
400
A loan that is not guaranteed by collateral.
What is Unsecured-loan?
400
Initial inventory for the business is which type of cost?
1-Fixed cost
2-Personal cost
3-Start-up cost
4-Variable cost
What is Start-up cost?
400
25.What is collateral?
1-Evidence of a good financial plan
2-Responsibility shown by repaying bills in the past
3-Short-term financing
4-Something of value that the lender can claim if the debt is not repaid
What is Something of value that the lender can claim if the debt is not repaid?
500
Expenses that may change from month to month depending on the needs of the business; costs that increase and decrease with the quantity of the good or service produced/sold.
What is Variable costs?
500
The monetary value of the business; assets minus liabilities.
What is Net worth?
500
Individuals or firms that invest money professionally to make money, expect a large capital gain, and look for high growth potential.
What is Venture capitalists?
500
When seeking a loan, an entrepreneur who has capacity:
1-Considers environmental conditions before applying for the loan.
2-Demonstrates the ability to repay the debt.
3-Has insurance to cover business losses.
4-Has made a personal investment in the business.
What is Demonstrates the ability to repay the debt?
500
28.A federal agency that provides grants to cities for loans to private developers to help improve impoverished areas is:
1-HUD
2-IRS.
3-SBA.
4-SCORE.