Funding and Financial Statements - Ent.

The information in pro forma financial statements is based on...

• projections

• current interest rates

• your net worth

• financial data from the previous year

Things of value that you own are classified as...

• interest rates

• liabilities

• benefits

• assets

What is a liability?

• Something that you owe

• account receivables

• your family and friends

• Something of value that you own.

You have assets totaling $10,000 and all of your debts total $13,000. What is your net worth

• $3

• $23,000

• $3000

• $-3000

Which of the following is an example of debt financing a business?

• Selling shares of stock

• Borrowing money from your friend

• Collecting donations through a Go Fund Me

• claiming bankruptcy

Select each option that could be a source of equity finanacing for a business.

• family and friends

• a loan

• venture capitalists

• personal contributions

A secured loan...

• does not require collateral

• requires collateral

An unsecured loan is based on good faith and has no collateral

• True

• False

What could be a reason for being turned down for a business loan? (Select all that apply)

• you don't have a business plan

• you lack experience in running a business

• You were punctual and well dressed for your meeting with the lender.

• you have little to no personal investment in the business

Having a loan guaranteed by the SBA increases your chances of receiving a loan from a financial institution.

• False

• True