Deck 5: Finances: How Will I Manage the Money

Question 1

Money loaned to entrepreneurs by relatives and friends is called:

A)sweat equity.
B)family fund equity.
C)personal equity.
D)love money.

Answer 1

D

Question 2

Personal finance and business finance involve largely the same ideas.

Answer 2

True

Question 3

Loans under the Canada Small Business Financing program are negotiated through regular chartered banks.

Answer 3

True

Question 4

Almost all businesses have some seasonal fluctuation in sales.

Question 5

Financial Statements that predict future performance of a company are called:

A)ad-hoc financial statements.
B)minimum value financial statements.
C)pro forma financial statements.
D)all of the above.

Question 6

BDC stands for:

A)Business Department of Commerce.
B)Business Development Bank of Canada.
C)British Development Corporation.
D)Banking for Developing Companies.

Question 7

There is basically a single, precise accounting term for each accounting concept.

Question 8

Venture capital companies are particularly interested in providing start-up capital for new firms.

Question 9

"Posted" interest rates at the bank are negotiable.

Question 10

The Financial Statement that shows the financial position of a company at a particular moment in time is the:

A)balance sheet.
B)income statement.
C)cash flow statement
D)all of the above.

Question 11

A new small business is only likely to sell shares through:

A)a stock exchange.
B)private placement.
C)the securities commission.
D)going public.

Question 12

Credit Bureaus:

A)are provincially regulated.
B)are owned by their members.
C)must allow individuals to see their own files.
D)all of the above.

Question 13

The break-even point is where:

A)all of a company's overhead is covered.
B)a company starts to make net profit.
C)the income from sales is equal to all of a company=s costs and expenses.
D)all of the above.

Question 14

The Sales of a company minus its Cost of Goods Sold are equal to:

A)the operating expenses.
B)the gross profit.
C)the net profit.
D)the variable expenses.

Question 15

Assets can depreciate even if they are not being used in a business.

Question 16

"Cash" is an example of a fixed asset.

Question 17

A break-even number is a very precise financial tool.

Question 18

Liabilities are:

A)legal debts.
B)nuisance situations.
C)negative personality attributes.
D)favours that you owe.

Question 19

The amount of collateral required for a bank loan is negotiable.

Question 20

Equity is:

A)the amount of claim an owner has on an asset.
B)how rich someone is.
C)the difference between assets and liabilities.
D)all of the above.

Question 21

Discuss the advantages and disadvantages for each of the major sources of start-up financing.

Question 22

Discuss the process and need for cash-flow planning.