Entrepreneurship Ch 9 Review

Your personal financial statement should consist of actual figures for your personal assets and liabilities.

• True

• False

The only way to get equity capital is through people you know or through venture capitalists.

• True

• False

The reason a bank may turn down your loan application is

• you have previously owned a business

• a startup business is less likely to default on a loan

• your business plan is poorly written

• you have invested too much of your own money

Secured loans are a type of debt capital, and unsecured loans are equity capital.

• True

• False

If you are turned down for a loan by a bank, the SBA may be able to help you get financing for your business.

• True

• False

Place a T for True or an F for False in the Answers column to show whether the following statement is true or false. SBICs are licensed by the SBA to make loans to and invest capital with entrepreneurs.

• True

• False

Net cash flow is negative if cash receipts are

• less than disbursements

• equal to disbursements

• greater than disbursements

• none of these

A cash flow statement deals with actual cash coming in and going out of a business.

• True

• False

To create a pro forma cash flow statement, you will need to estimate your monthly cash receipts and monthly cash disbursements.

• True

• False

Cash receipts + Cash disbursements = Net cash flow.

• True

• False