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Econ Indicators, Bus Financing Options and Cash Flow

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

A long-term loan from the Small Business Administration

a)

Asset-based loan

b)

504 loan

c)

Crowdfunding

d)

Bank term loan

2.

A person who contributes his/her own money as start-up capital for a business, usually in exchange for a share of ownership.

a)

Angel investor

b)

Venture capitalist

c)

Bank lender

d)

Equipment leasor

3.

A loan that is secured by things the company owns, such as equipment, real estate, or vehicles.

a)

Equipment lease

b)

Asset-based loan

c)

Institutional venture capital

d)

Bank term loan

4.

A bank term loan

a)

usually is backed by the Federal government

b)

usually is backed by a company's future earnings

c)

usually has a variable interest rate and is open-ended

d)

usually has a fixed interest rate for a pre-determined period of time

5.

A business owner can improve cash flow by (check all that apply):

a)

extending extra credit to customers, giving them more time to pay

b)

buying enough inventory to last a year

c)

buying just enough inventory to meet current needs

d)

contacting customers to get them to pay their bills faster

e)

ending relationships with non-paying customers

6.

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.

a)

An SBA loan

b)

Angel Investors

c)

Crowdfunding

d)

Equipment leasing

7.

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.

a)

equipment leasing

b)

asset-based loan

c)

crowdfunding

d)

504 loan

8.

___________ 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.

a)

Angel Investors

b)

Institutional Venture Capitalists

c)

Community Development Financial Institutions

d)

Crowdfunders

9.

An organization that provides financial services specifically to underserved areas is

a)

Institutional Venture Capital firm

b)

Angel Investor group

c)

Federal Government Venture Capital firm

d)

Community Development Financial Institution

10.

A loan from the US government to develop a start-up business is called___________________.

a)

an SBA loan

b)

Federal Government Venture Capital

c)

504 loan

d)

Asset-based loan

11.

The economic indicator that measures everything produced by all companies in the country is known as

a)

Producer Price Index

b)

Consumer Price Index

c)

A leading indicator

d)

Gross Domestic Product

12.

_____________ is a survey of 5,000 households that tracks how optimistic people feel about the state of the economy.

a)

Consumer Confidence Index

b)

Consumer Opinion Poll

c)

Consumer Price Index

d)

Consumer Happiness Index

13.

This measures changes in the prices manufacturers charge retailers.

a)

Consumer Price Index

b)

Gross Domestic Product

c)

Producer Price Index

d)

Non-farm Payroll

14.

____________ 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.

a)

Home Sales - Existing

b)

Housing Starts

c)

New Residential Sales

d)

Unemployment Rate

15.

Economic Indicator that changes before the economy has changed, and therefore can sometimes predict changes that are coming:

a)

Leading Indicator

b)

Lagging Indicator

c)

Coincident Indicator

16.

An economic indicator that changes directly with changes in the economy, thus showing the current status of the economy:

a)

Leading Indicator

b)

Lagging Indicator

c)

Coincident Indicator

17.

An economic indicator that confirms a long-term economic trend, changing after changes take place in the economy:

a)

Leading Indicator

b)

Lagging Indicator

c)

Coincident Indicator

18.

Indicates the strength of the labor market by tracking the number of people who are out of work but actively looking for work:

a)

Non-Farm Payroll

b)

GDP

c)

Consumer Price Index

d)

Unemployment Rate

19.

This economic indicator is considered to be the best measure of the economic health of US companies.

a)

Producer Price Index

b)

Gross Domestic Product

c)

S & P 500

d)

Unemployment Rate

20.

The ______________ tracks changes over time in the average prices paid for a list of consumer goods and services.

a)

Consumer Price Index

b)

Consumer Confidence Index

c)

Producer Price Index

d)

Gross Domestic Product

21.

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.

a)

Unemployment Rate

b)

Consumer Confidence Index

c)

Non-farm Payroll

d)

Gross Domestic Product

22.

In the Cash Conversion Cycle, ____________ is an example of Cash In:

a)

A business owner paying rent

b)

A business customer paying for services

c)

A business owner sending an invoice to a customer

d)

A business owner ordering raw materials to make the company's products for sale

23.

In the Cash Conversion Cycle, ____________ is an example of Cash Out:

a)

A business owner paying rent

b)

A business customer paying for services

c)

A business owner sending an invoice to a customer

d)

A business owner ordering raw materials to make the company's products for sale

24.

It is critically important for business owners to manage the Cash Conversion Cycle because

a)

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

b)

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

25.

A profitable business could still fail if the business

a)

has negative cash flow

b)

has positive cash flow