QUESTION Which of the following is NOT associated with financial institutions? A) credit unions B) the Small Business Administration C) banks D) peer-to-peer lending networks E) savings and loans ANSWER Answer: D Explanation: D) Peer-to-peer lending groups are associated with private organizations or Web-based communities and offer microloans to support new businesses.
QUESTION Which of the following is NOT a rationale for creating a business plan? A) to outline the goals of a proposed company B) to secure funding for a proposed company C) to lay out methods to achieve the proposed company’s goals D) to clarify the business model for the proposed company E) to state […]
QUESTION Yuri utilized every possible financing option to get his new business started. Now, after two years and fantastic growth, he is preparing to sell the business at a substantial profit. Which of the following will NOT realize additional profit from Yuri’s sale of the business? A) family investors B) bank lender C) angel investors […]
QUESTION Which of the following has the LEAST need for creating a complex business plan? A) opportunity entrepreneur B) classic entrepreneur C) micropreneur D) necessity entrepreneur E) entrepreneurial team ANSWER Answer: C Explanation: C) Micropreneurs tend to operate home-based businesses to make a living and have a balanced lifestyle. The scale of their operation […]
QUESTION Which of the following would NOT commonly secure funding through a venture capitalist firm? A) medical device company B) biotech company C) green energy company D) landscaping company E) software company ANSWER Answer: D Explanation: D) Venture capitalists provide little financing for small companies, and tend to focus on software, medical devices, biotech, […]
QUESTION What is the most important information that potential investors review to determine whether to provide capital for a new business? A) business model B) owner resume C) business website D) business plan E) owner certifications ANSWER Answer: D Explanation: D) A business plan outlines a company’s goals, methods for achieving them, and standards […]
QUESTION Josh needs financial support to get his new custom kite business off the ground. Which of the following options does NOT involve a direct, up-front commitment of resources from Josh? A) credit cards B) second mortgage C) second job D) peer-to-peer lending E) personal savings ANSWER Answer: D Explanation: D) Peer-to-peer lending is […]
QUESTION The comprehensive analysis required in preparing a business plan can help an entrepreneur identify what critical factor related to success or failure in business? A) keeping good records B) adequate management skills C) credit D) government paperwork E) hiring good employees ANSWER Answer: B Explanation: B) Because a business plan requires detailed thinking […]
QUESTION In which type of business support do tax credits play a significant role? A) public stock offerings B) Small Business Administration loan guarantees C) enterprise zones D) supplier bartering arrangements E) peer-to-peer lending networks ANSWER Answer: C Explanation: C) In enterprise zones, governments try to encourage businesses to locate in a designated area […]
QUESTION Which of the following is NOT part of the business model for a proposed enterprise? A) the business operations B) anticipated revenues and expenses C) business components and functions D) market need to be filled E) qualifications of the owner ANSWER Answer: E Explanation: E) A business model defines the basic idea behind […]
