Money that is "kept back" for emergencies or for unexpected business opportunities.
What is a reserve fund?
100
Money from your own assets such as savings or investments.
What is personal financing
100
The letter of the alphabet associated with obtaining credit.
What is the letter "C"?
100
The three major parts of a business plan.
What are strategic, financial, and marketing?
100
Revenue (Sales) minus the Cost of Goods Sold
What is Gross Profit on Sales?
200
Pre-approved amount that a business my borrow from the bank in increments as needed. Interest is only charged on the amount that is actually borrowed.
What is a line of credit?
200
Money borrowed based on the difference between the current market value of a house and the amount owed to the bank. Borrowing money based on the part of your mortgage you have paid back already.
What is a home equity loan?
200
The five C's of credit
What are Character, Capacity, Capital, Collateral, and conditions?
200
Loans made for 30, 60, or 90 days.
What are short term loans?
200
Expenses that remain the same regardless of the number of sales.
What are fixed expenses?
300
Money borrowed from a bank that MUST be backed by collateral
What is a secured loan?
300
Private financing is a preferred method because it often requires zero of this...property or other assets used to secure a loan.
What is collateral?
300
Your reputation in the business community, your prior history with the bank, and proof of your skills.
What is Character?
300
The percentage of businesses in the US that are run by one owner.
What is 80%?
300
It's what GAAP stands for.
What is Generally Accepted Accounting Principles?
400
An independent agency of the federal government that offers assistance to people who are starting small businesses and to those who want to expand their small business.
What is the Small Business Administration?
400
They are highly experienced in dealing with small businesses. They offer a wide variety of loan plans. They offer advice and other business services. They are community-oriented and are interested in seeing local businesses succeed.
What are the advantages of small banks?
400
The financial statement used to prove that you have the capacity to pay back a loan.
What is the statement of cash flow. (Income Statement is also acceptable since it mentions reporting profits).
400
The three types of capital needed to start a business.
What are start up costs, operating costs and reserve funds?
400
A major disadvantage of sole proprietorship. If the business fails the person is responsible for all the losses.
What is Unlimited Liability?
500
A company that provides private funding for small businesses that need a substantial amount of immediate cash. They expect a large return (25-40%)
What is a Venture Capital Firm?
500
The market value of a home times 80%
What is the adjusted market value?
500
The percentage of capital needed to start a business that banks expect to come from personal financing.
What is 30%?
500
The rate financial institutions are charged to borrow funds from Federal Reserve Banks?
What is the Discount Rate?
500
A level of competition characterized by a few large businesses in a market and many consumers that want or need those firms' products.