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WorksheetsEcon Indicators, Bus Financing Options and Cash Flow
Total questions: 25
Worksheet time: 13mins
A long-term loan from the Small Business Administration
Asset-based loan
504 loan
Crowdfunding
Bank term loan
A person who contributes his/her own money as start-up capital for a business, usually in exchange for a share of ownership.
Angel investor
Venture capitalist
Bank lender
Equipment leasor
A loan that is secured by things the company owns, such as equipment, real estate, or vehicles.
Equipment lease
Asset-based loan
Institutional venture capital
Bank term loan
A bank term loan
usually is backed by the Federal government
usually is backed by a company's future earnings
usually has a variable interest rate and is open-ended
usually has a fixed interest rate for a pre-determined period of time
A business owner can improve cash flow by (check all that apply):
extending extra credit to customers, giving them more time to pay
buying enough inventory to last a year
buying just enough inventory to meet current needs
contacting customers to get them to pay their bills faster
ending relationships with non-paying customers
An entrepreneur may turn to ________________ to finance a business if he/she wants to use social media to appeal to a large number of individual investors, including family, friends, colleagues and others.
An SBA loan
Angel Investors
Crowdfunding
Equipment leasing
When the construction company owner obtained the use of a new cement-mixer, with an agreement to pay for it over time, she was using ___________ to finance the purchase.
equipment leasing
asset-based loan
crowdfunding
504 loan
___________ are a group of investors, investment bankers and other financial institutions that typically invest large sums of money in start-up firms or small businesses that offer long-term growth potential.
Angel Investors
Institutional Venture Capitalists
Community Development Financial Institutions
Crowdfunders
An organization that provides financial services specifically to underserved areas is
Institutional Venture Capital firm
Angel Investor group
Federal Government Venture Capital firm
Community Development Financial Institution
A loan from the US government to develop a start-up business is called___________________.
an SBA loan
Federal Government Venture Capital
504 loan
Asset-based loan
The economic indicator that measures everything produced by all companies in the country is known as
Producer Price Index
Consumer Price Index
A leading indicator
Gross Domestic Product
_____________ is a survey of 5,000 households that tracks how optimistic people feel about the state of the economy.
Consumer Confidence Index
Consumer Opinion Poll
Consumer Price Index
Consumer Happiness Index
This measures changes in the prices manufacturers charge retailers.
Consumer Price Index
Gross Domestic Product
Producer Price Index
Non-farm Payroll
____________ is the report that only includes single-family homes (not multi-family) and is used to predict GDP. Manufacturers and financial institutions use this report to plan their business needs.
Home Sales - Existing
Housing Starts
New Residential Sales
Unemployment Rate
Economic Indicator that changes before the economy has changed, and therefore can sometimes predict changes that are coming:
Leading Indicator
Lagging Indicator
Coincident Indicator
An economic indicator that changes directly with changes in the economy, thus showing the current status of the economy:
Leading Indicator
Lagging Indicator
Coincident Indicator
An economic indicator that confirms a long-term economic trend, changing after changes take place in the economy:
Leading Indicator
Lagging Indicator
Coincident Indicator
Indicates the strength of the labor market by tracking the number of people who are out of work but actively looking for work:
Non-Farm Payroll
GDP
Consumer Price Index
Unemployment Rate
This economic indicator is considered to be the best measure of the economic health of US companies.
Producer Price Index
Gross Domestic Product
S & P 500
Unemployment Rate
The ______________ tracks changes over time in the average prices paid for a list of consumer goods and services.
Consumer Price Index
Consumer Confidence Index
Producer Price Index
Gross Domestic Product
To get an idea of how strong the US labor market is -- the number of people working -- the ____________ report is a good indicator to watch.
Unemployment Rate
Consumer Confidence Index
Non-farm Payroll
Gross Domestic Product
In the Cash Conversion Cycle, ____________ is an example of Cash In:
A business owner paying rent
A business customer paying for services
A business owner sending an invoice to a customer
A business owner ordering raw materials to make the company's products for sale
In the Cash Conversion Cycle, ____________ is an example of Cash Out:
A business owner paying rent
A business customer paying for services
A business owner sending an invoice to a customer
A business owner ordering raw materials to make the company's products for sale
It is critically important for business owners to manage the Cash Conversion Cycle because
if there is more money flowing out of the business than flowing in, the business could fail if there is no cash to pay the bills
If there is more money flowing into the business than flowing out, the business could fail if there is no cash to pay the fills
A profitable business could still fail if the business
has negative cash flow
has positive cash flow
