Financial Basics for Young Entrepreneurs

What is a common source of funding for starting a new business?

• Birthday money

• Bank loan

• Buying toys

Which of the following is important for managing cash flow in a business?

• Counting stars

• Keeping track of money coming in and going out

• Collecting stamps

What is budgeting for growth?

• Planning how to spend more time playing

• Planning how to use money to make a business bigger

• Planning a birthday party

What is the difference between debt and equity financing?

• Debt is borrowing money, equity is sharing toys

• Debt is borrowing money, equity is selling part of the business

• Debt is saving money, equity is spending money

Which of the following is a financial forecasting technique?

• Predicting the weather

• Estimating future sales and expenses

• Guessing the number of candies in a jar

What is a startup?

• A new type of toy

• A new business just beginning

• A new game to play

Why is cash flow management important?

• To make sure you have enough toys

• To ensure a business can pay its bills on time

• To keep track of your favourite colours

What does a budget help a business do?

• Plan a picnic

• Plan how to spend and save money

• Plan a treasure hunt

What is equity in a business?

• A type of candy

• Ownership in the business

• A new game

What is a financial forecast?

• A weather report

• A prediction of future financial performance

• A magic trick