Intro Ch 6 Review

Private investors who fund start-up businesses are called ____.

• banks

• angel investors

• investment funds

• entrepreneurs

A(n) ____ is a written statement of goals and objectives for a business with a strategy to achieve them.

• financial statement

• summary

• business plan

• resume

The cycle of money spending cash flow transfer of funds movement of money into and out of a business is called ____.

• cycle of spending money

• spending

• cash flow

• transfer of funds

___ is an asset pledged that will be claimed by a lender if the loan is not repaid.

• Collateral

• Goods

• Principle

• Interest

A person who starts a new business or purchases an existing business is a(n) ____.

• capitalist

• manager

• entrepreneur

• boss

Capital brought into a business in exchange for a percent of ownership in the business is called ____.

• funding

• debt financing

• liabilities

• equity financing

___ are critical skills necessary to perform the required work-related tasks of a position.

• Procedures

• Job-specific skills

• Critical steps

• Management skills

A ____ is someone with experience who can provide advice, suggestions, and ideas.

• professor

• manager

• mentor

• teacher

___ is the process of gathering and analyzing of information about a business.

• Surveying

• Market Research

• Analysis

• Financing reporting

The ____ is a sentence in a business plan that describes the purpose of the business.

• mission statement

• objective

• summary

• opening