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
to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will
Click it to see your results. Good luck!
Question 11.Which of the following funding sources is an agency of the United States government?
Question 22.Which of the following funding sources is most likely to allow an entrepreneur to retain total personal control over his or her business?
Question 33.Which type of funding source is primarily interested in backing businesses that have a high growth potential?
Question 44.What is an angel investor?
Question 55.What is a risk of working with an angel investor?
Question 66.What is an important characteristic of a business owner to lure an angel investor?
Question 77.Which statement is correct regarding start-up budgets?
Question 88.What is a start-up budget?
Question 99.Which parties typically request and research the start-up budget?
Question 1010.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 1111.Why is financial feasibility an important step in financial planning?
Question 1212.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 1313.Which of the following BEST defines long-term financing?
Question 1414.Why are government grants considered the cheapest form of long-term financing?
Question 1515.How is a secured loan different from an unsecured loan?
Question 1616.Which of the following is TRUE of asset-based loan product lenders?
Question 1717.Which of the following is typically an acceptable asset used to guarantee an asset-based loan?
Question 1818.Which of the following is a common use for the proceeds of asset-based lending?
Question 1919.Which of the following is the best explanation of short-term financing?
Question 2020.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 2121.Why might a business choose trade credit over other forms of short-term financing?
Question 2222.When is bootstrapping used?
Question 2323.What are the two methods of bootstrapping?
Question 2424.What is one type of bootstrapping that cannot be used for a business strat-up?
Question 2525.Which type of funding source involves making an appeal to the general public to raise funds?
Question 2626.What is one way angel investors vary from venture capitalists?
Question 2727.Which of the following might NOT be included in a start-up budget?
Question 2828.What type of budget provides an estimation of costs and revenue regarding a long-term business venture or fixed asset?
Question 2929.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 3030.Which of the following is TRUE of a company that is young and lacks significant assets?
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!