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Small Business Financing Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What is a start-up budget?

Question 2 2. Name two additional expenses that should considered for inclusion in the start-up budget.

Question 3 3. Which parties typically request and research the start-up budget?

Question 4 4. What is a benefit of working with an angel investor?

Question 5 5. What is an angel investor?

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Question 6 6. What is a risk of working with an angel investor?

Question 7 7. 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 8 8. Which of the following funding sources is an agency of the United States government?

Question 9 9. Which type of funding source is primarily interested in backing businesses that have a high growth potential?

Question 10 10. Which of the following is TRUE of asset-based loan product lenders?

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Question 11 11. Which of the following is a common use for the proceeds of asset-based lending?

Question 12 12. Which of the following is an example of a form of asset-based lending?

Question 13 13. What are the two methods of bootstrapping?

Question 14 14. Which are types of bootstrapping?

Question 15 15. What is bootstrapping used for?

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Question 16 16. 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 17 17. Which type of credit involves the bank allowing a borrower to borrow money on an as needed basis up to a preset maximum?

Question 18 18. 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 19 19. What type of financing involves investors becoming creditors?

Question 20 20. Which of the following BEST defines long-term financing?

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Question 21 21. 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 22 22. 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?

Question 23 23. Financial planning can best be defined as a process for making sure that _____.

Question 24 24. 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 25 25. Which of the following might NOT be included in a start-up budget?

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Question 26 26. What is one way angel investors vary from venture capitalists?

Question 27 27. Which of the following funding sources is most likely to allow an entrepreneur to retain total personal control over his or her business?

Question 28 28. Which of the following is typically an acceptable asset used to guarantee an asset-based loan?

Question 29 29. When is bootstrapping used?

Question 30 30. Why might a business choose trade credit over other forms of short-term financing?

Small Business Financing Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!

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