Front

Which 2 should be included when calculating start up cost for a business? Rent and utilities, Business cards and permits, licenses, and incorporation fees, payroll and rent, utilities and business cards

Back

Business cards and permits, licenses, and incorporation fees

Front

What are 2 benefits of equity funding?

Back

Can be used to raise working capital and investors do not get paid if the business does not make a profit.

Front

Which 2 are benefits of using Angel investors to help start a business? Options: Payback of the loan is predictable and angels often accept a lower return on investment, Angels often accept a lower return on investment and typically do not expect to be paid until the business starts making money, Angels have no say in the management of the business and no need for collateral, Payback of the loan is predictable and no need for collateral

Back

Angels often accept a lower return on investment and typically do not expect to be paid until the business starts making money

Front

Equity financing requires a business owners to give up control of the business to obtain funding

Back

True

Front

Bootstrapping requires the owner of the company to provide all the funding

Back

True

Front

Lenders do not require owners to identify the purpose of the loan

Back

False

Front

The business owner's personal credit score does not affect their ability to qualify for a loan

Back

False

Front

A law was passed increasing the minimum wage by 30%. What is the minimum amount the owner of a small business must now charge customers for labor to balance increased operational expenses?

Back

30%

Front

The formula to determine equity is Assets - Liabilities = Equity

Back

True

Front

You operate a small insurance office with a partner. Which expense is a fixed cost? Options: Paycheck for an hourly administrative assistant, water bill for an office, property lease for the office, cost of paper supplies

Back

property lease for the office