Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
unit4 test
test review
| Question | Answer |
|---|---|
| - 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 | Cost of baking ingredients |
| - Buoy's Restaurant sets aside $400 a month to cover unexpected expenses. This represents a/n | Contingency fund |
| - Expenses that do NOT remain the same from month to month are | Variable costs. |
| Deposits paid prior to opening the business to connect utility services for a new business are considered: | Start-up costs |
| - Expenses that are NOT affected by sales volume are called | Fixed costs |
| - One factor that affects start-up costs of a new business is: | Whether the business is a retail or wholesale organization |
| - Miscellaneous expenses incurred by the entrepreneur for clothing, travel and entertainment are | Personal expenses |
| - Initial inventory for the business is which type of cost? | Start-up cost |
| As she prepared to open her new flower shop, Jamesia made several trips to talk with an accountant. The fees paid for those consultations would be classified | Start-up costs. |
| Advertising and promotion expenses for an ongoing business are: | Variable costs. |
| - Which is NOT a factor that affects start-up costs? | Number of customers who purchase goods/services on opening day |
| - A short-term loan is repayable in: | One year. |
| When seeking a loan, an entrepreneur who has capacity: | Demonstrates the ability to repay the debt |
| - One advantage of entering into a partnership with people or with other companies having compatible goods is that a partnership: | Increases the borrowing power of the business |
| - An advantage of using family and friends as sources of funding | The availability of money with little or no restriction |
| A line of credit is: | A prearranged loan at an established rate available whenever the business owner needs it |
| State-sponsored venture capital funds are provided to entrepreneurs by the state to encourage economic development and: | Create jobs. |
| Funding that is borrowed from family or friends is sometimes called | Love money |
| - What is a disadvantage of using a partnership as a source of funding | Loss of some of the control and ownership |
| - The most common source of business financing is a: | Bank |
| A source of funding that requires money borrowed to be paid back with interest is referred to as | Debt. |
| - One disadvantage of using personal savings as a source of funding is that it | Provides unlimited liability |
| What is trade credit? | A form of short-term financing from within the industry |
| What is collateral | Something of value that the lender can claim if the debt is not repaid |
| - When an entrepreneur visits a bank to apply for a loan, he/she should be ready to: | Discuss his/her business plan |
| - A loan that is granted to a bank's most credit-worthy customers and is not guaranteed by collateral is a/an: | Unsecured loan |
| - A federal agency that provides grants to cities for loans to private developers to help improve impoverished areas is: | HUD |
| - Who are angels | Wealthy individuals functioning as non-professional investors who are willing to invest in local businesses |
| A government agency that uses a commercial bank to make loans to businesses and then guarantees up to 90% of the loan if the business fails is the | SBA. |
| - Ability and willingness to invest personally in a business venture satisfies the credit requirement for: | Capital. |
| - The repayment of a long-term loan is expected to take | More than one year |
| - Money invested in a business by private investors is: | Equity funding. |
| - Capital contributed by the owner(s) of a business is | Equity. |
| - One advantage of using personal savings to fund a sole proprietorship is that | The owner retains all the profits |
| What are start-up costs | One-time expenses incurred by the entrepreneur when beginning a business |
Created by:
niyo
Popular Business sets