Entrepreneurship--Lesson 6-2 Slides

Multiple Choice

What is debt capital in the context of business loans?

• Money given to a business as a gift

• Money loaned to a business that must be repaid with interest

• Money earned by a business from sales

• Money invested by shareholders

Multiple Choice

Which of the following is NOT considered a form of collateral for a secured loan?

• Real estate

• Savings accounts

• Life insurance policies

• Business plan

Multiple Select

Select all the types of secured loans listed below.

• Line of credit

• Short-term loan

• Long-term loan

• Unsecured loan

Multiple Choice

Which of the following is NOT a reason a bank may refuse to lend money to a business?

• Business is a start-up

• Lack of solid business plan

• Owner invests reasonable amount of own money

• Lack of confidence in borrower