1. 2 pt 3 pt 4 pt 5pt 1 pt 2 pt 3 pt 4 pt 5 pt 1 pt 2pt 3 pt 4pt 5 pt 1pt 2pt 3 pt 4 pt 5 pt 1 pt 2 pt 3 pt 4pt 5 pt 1pt SBE 4.02

2. A short-term loan is repayable in

3. One year.

4. When seeking a loan, an entrepreneur who has capacity:

5. #] Demonstrates the ability to repay the debt.

6. One advantage of entering into a partnership with people or with other companies having compatible goods is that a partnership:

7. Increases the borrowing power of the business.

8. An advantage of using family and friends as sources of funding is:

9. #] The availability of money with little or no restriction.

10. A line of credit is:

11. A prearranged loan at an established rate available whenever the business owner needs it.

12. State-sponsored venture capital funds are provided to entrepreneurs by the state to encourage economic development and:

13. #] Create jobs.

14. Funding that is borrowed from family or friends is sometimes called:

15. Love Money

16. What is a disadvantage of using a partnership as a source of funding?

17. Loss of some of the control and ownership

18. The most common source of business financing is a:

19. Bank

20. A source of funding that requires money borrowed to be paid back with interest is referred to as:

21. debt

22. One disadvantage of using personal savings as a source of funding is that it:

23. Provides unlimited liability

24. What is trade credit?

25. A form of short-term financing from within the industry

26. What is collateral?

27. Something of value that the lender can claim if the debt is not repaid

28. When an entrepreneur visits a bank to apply for a loan, he/she should be ready to:

29. Discuss his/her business plan.

30. A loan that is granted to a bank’s most credit-worthy customers and is not guaranteed by collateral is a/an:

31. Unsecured loan.

32. A federal agency that provides grants to cities for loans to private developers to help improve impoverished areas is:

33. HUD

34. Who are angels?

35. Wealthy individuals functioning as non-professional investors who are willing invest in local businesses

36. A government agency that uses a commercial bank to make loans to businesses and then guarantees up to 90% of the loan if the business fails is the:

37. SBA

38. Ability and willingness to invest personally in a business venture satisfies the credit requirement for:

39. Capital

40. The repayment of a long-term loan is expected to take:

41. More than one year

42. Money invested in a business by private investors is:

43. Equity funding

44. Capital contributed by the owner(s) of a business is:

45. Equity

46. One advantage of using personal savings to fund a sole proprietorship is that:

47. The owners retain all profit