VB-Lesson 8-Savings & Bank Loans Review

A bank loan is what form of financing?

• Debt

• Equity

Selling shares of stock in your company is what form of financing?

• Debt

• Equity

Crowdfunding is characterized by:

• A small number of investors contributing large amounts of money

• A large number of investors contributing small amounts of money

• A major bank investing

• A pension fund investing

The income statement shows:

• Revenue, expenses, and profit

• Assets, liabilities, and equity

• Cash flow from financing

• Debt repayment streams

When a venture capitalist offers an entrepreneur $100,000 for shares representing 20% of a company, it is a form of:

• Bank loan

• Debt financing

• Promissory note

• Equity financing

The balance sheet shows:

• Amortization tables

• Revenue, expenses, and profit

• Assets, liabilities, and equity

• Payroll taxes

A charge that is a percentage of the loan amount, usually payable monthly, is called:

• Interest

• Balance

• Debenture

• Liability

A secured loan is:

• Guaranteed by the government

• Protected from ever defaulting

• Not required to be paid back

• Backed by collateral

Lenders generally prefer a debt to equity ratio that is:

• High

• Low

• Equal to 10

• Around 5

A share of stock represents:

• A portion of ownership in the company

• The right to be repaid a fixed dollar amount

• An option to purchase part of the company

• A promise to pay the company fixed monthly amounts