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Question 11.Kevin is an investment banker who wants to wine and dine with prospective clients. He may not have all of the cash he requires to pay. Why should he use a credit card?
Question 22.Which of the following funding sources is an agency of the United States government?
Question 33.How is a secured loan different from an unsecured loan?
Question 44.Which of the following BEST defines long-term financing?
Question 55.Which parties typically request and research the start-up budget?
Question 66.Financial planning can best be defined as a process for making sure that _____.
Question 77.Which are types of bootstrapping?
Question 88.Why might a business choose trade credit over other forms of short-term financing?
Question 99.Which of the following funding sources is most likely to allow an entrepreneur to retain total personal control over his or her business?
Question 1010.What is bootstrapping used for?
Question 1111.Which of the following might NOT be included in a start-up budget?
Question 1212.Name two additional expenses that should considered for inclusion in the start-up budget.
Question 1313.Which type of funding source involves making an appeal to the general public to raise funds?
Question 1414.Which type of credit involves the bank allowing a borrower to borrow money on an as needed basis up to a preset maximum?
Question 1515.Which type of funding source is primarily interested in backing businesses that have a high growth potential?
Question 1616.Barry takes out a 12 month loan from a bank to buy some new office equipment. The bank requires that Barry put up the equipment he is purchasing as collateral. What type of credit arrangement is involved?
Question 1717.Which type of funding source involves 'thinking outside the box' and trading goods and services to get the resources an entrepreneur needs for his or her business?
Question 1818.Why is financial feasibility an important step in financial planning?
Question 1919.What type of financing involves investors becoming creditors?
Question 2020.Why are government grants considered the cheapest form of long-term financing?
Question 2121.Which of the following is the best explanation of short-term financing?
Question 2222.Tom works in accounting, and he has to prepare a budget that will take into account all of the activities of the company. There will be a strong investment from the acquisitions department that will impact their budget but is worth less than 2% of the company's value. Should Tom wait for a new report from the acquisition's department?
Question 2323.What is a start-up budget?
Question 2424.John is the owner of a small IT company. In exchange for a financial investment, he gave his friend Katerina 10% of the company. This is an example of what type of financing?
Question 2525.What are the two methods of bootstrapping?
Question 2626.When is bootstrapping used?
Question 2727.Which statement is correct regarding start-up budgets?
Question 2828.What type of budget provides an estimation of costs and revenue regarding a long-term business venture or fixed asset?
Question 2929.What is one type of bootstrapping that cannot be used for a business strat-up?
Question 3030.After allocating the resources, a company CEO is trying to control and monitor the acquisition, allocation and utilization of the financial resources. Should the CEO even perform financial control?
Small Business Financing Chapter Exam Instructions
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