WorksheetsBell Ringer: Chapter 7 Financial Planning Lessons 4-5
Total questions: 10
Worksheet time: 5mins
What is one type of bootstrapping that cannot be used for a business start-up?
Bartering, factoring, and use of credit cards
Factoring, personal loans, and bank loans
Bank loans, credit card debt, and leasing equipment
Trade credit, crowdfunding, and bartering
What are two methods of bootstrapping
Minimizing waste and acquiring new resources
Applying for a bank loan and using crowdfunding
Efficiently utilizing the resources you have and minimizing waste
Efficiently utilizing the resources you have and acquiring new resources.
What is bootstrapping used for
It is an inventory management tool.
It is used to avoid paying taxes on business financing
Gaining financial resources to start and grow your business
It is used as an employee incentive.
What is one type of bootstrapping that cannot be used for a business start-up?
Factoring
Personal loans
Bartering
Credit card debt
When is bootstrapping used?
Anytime that a small business needs to raise cash or access resources
It is only used to purchase inventory
It is only used to buy real estate
During the start up phase of a business.
Which of the following is typically an acceptable asset used to guarantee an asset-based loan?
Client lists
Intellectual property
Credit score
Accounts receivable
Which of the following is TRUE of a company that is young and lacks significant assets?
A young company is more likely than an established company to use asset-based lending
It will have difficulty obtaining financing with asset-based lending
It can obtain an asset-based loan solely on the basis of the owner's credit score
The only asset-based loan available will be a line of credit
Which of the following is TRUE of asset-based loan product lenders?
As the loan amount increases, it costs the lender more to originate and service the loan
Asset-based lenders focus solely on the value of the pledged assets
It costs about the same to manage a large loan as it does a small one
Asset-based lenders only consider highly liquid assets such as inventory.
Which of the following is a common use for the proceeds of asset-based lending?
Purchase inventory for upcoming high demand period
Make payroll during a slow business period
All of these answers are correct
Purchase tools and equipment to launch a new product
Which of the following is an example of a form of asset-based lending?
Mortgage
Bonds
Line of credit
Signature credit card
