Test 5: Financing Your Business

What is a company description?

A detailed description of your business and what it does
A fictional story about a magical kingdom
A list of your favorite foods

What’s the biggest benefit of being a business owner?

The unlimited earning potential
The ability to work in your pajamas
The free office supplies

What is financing?

The process of obtaining funding for a business
The process of selling a business
The process of marketing a business

What is a competitive analysis?

An analysis of your competitors and how your business compares to them
A study of the best way to win a race
A list of your favorite animals

What are the main sources of financing for a business?

Personal savings, bank loans, and venture capital
Social media marketing, SEO, and email marketing
Celebrity endorsements, influencer marketing, and product placement

What is a SWOT analysis?

An analysis of your business's strengths, weaknesses, opportunities, and threats
A type of martial art
A recipe for chicken tikka masala

What is a business loan?

Money borrowed from friends or family members to start a business
Money borrowed from a bank or other financial institution to start or grow a business
Money earned from the sale of a business

Who should write a business plan?

The founder of the business
The founder's cat
The founder's neighbor's dog

What are financial projections?

Estimates of your future revenue, expenses, and profits
A list of your favorite TV shows
A detailed plan for a trip around the world

What is collateral?

A type of loan that does not require any assets to be pledged
A type of loan that requires assets to be pledged as security
A type of investment that provides a guaranteed rate of return

What is market analysis?

Research on your target market and competitors
A study of how to perform magic tricks
A recipe for chicken tikka masala

What is a business credit score?

A score that measures a company's creditworthiness
A score that measures the number of social media followers a company has
A score that measures a company's environmental impact

What is a grant?

Money that does not need to be repaid and is typically awarded by a government agency or nonprofit organization
Money that needs to be repaid with interest and is typically obtained from a bank or financial institution
Money that is earned from the sale of a business

What is equity financing?

The process of obtaining funding by selling shares of ownership in a company
The process of obtaining funding by taking out a loan
The process of obtaining funding by using personal savings

What is venture capital?

Money invested in a new or growing business by a group of investors in exchange for an ownership stake
Money borrowed from a bank or financial institution to start or grow a business
Money earned from the sale of a business

What are the main components of a business plan?

Executive summary, company description, market analysis, financial projections, and more
A funny joke, a picture of a cat, and a recipe for chicken tikka masala
Just a list of products you want to sell

What is bootstrapping?

The process of starting and running a business without external funding
The process of obtaining funding from friends and family members
The process of obtaining funding from a bank or other financial institution

What is crowdfunding?

The process of obtaining funding by selling shares of ownership in a company
The process of obtaining funding by borrowing money from a bank or other financial institution
The process of obtaining funding by soliciting contributions from a large number of people, typically through an online platform

What is a business line of credit?

A loan that is used to finance the purchase of a business
A credit account that a business can draw funds from up to a certain limit
A type of insurance that protects a business in case of a financial loss

What is collateral?

A type of financing used by businesses to purchase equipment
Property or assets that are pledged to secure a loan
A type of loan that does not require any security

What is the difference between equity financing and debt financing?

Equity financing involves selling ownership in the company, while debt financing involves borrowing money that must be paid back with interest
Debt financing involves selling ownership in the company, while equity financing involves borrowing money that must be paid back with interest
There is no difference between equity financing and debt financing

What is an executive summary?

A brief overview of the key points in your business plan
A fancy way of saying "introduction"
A summary of your favorite books and movies

Why is a business plan important?

It helps you clarify your business goals and strategies
It's just a formality that banks require
It's a good way to show off your writing skills

What is an angel investor?

A wealthy individual who invests in a startup company in exchange for ownership or equity
A type of loan that is used to finance the purchase of a business
A government agency that provides funding to small businesses

What is a business plan?

A document outlining your business goals and strategies
A book on how to become a millionaire
A recipe for chicken tikka masala

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