Entrepreneurial Finance Fundamentals Quiz

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What is the term for the owner's own money, which fulfills a limited requirement of the enterprise?

Retained Profit

Internal Source (correct)

External Source

Working Capital

Which type of capital is the money invested in current assets like raw material, finished goods, machinery, equipment, and furniture?

Retained Profit

Fixed Capital (correct)

Personal Savings of the Owner

Working Capital

What is the term for the money required for the day-to-day operations of a business or enterprise?

Sale of Assets

Working Capital (correct)

External Source

Fixed Capital

Which source of finance involves profit earned by an entrepreneur and may be used to finance the future needs of a firm?

Retained Profit Signup and view all the answers

What may be used for fund, such as PF, insurance policy, investment, and building, by the owner?

Personal Savings of the Owner Signup and view all the answers

What involves taking goods, machinery, or plant on credit basis for a particular time period by giving bank security to the supplier?

Deferred Credit Signup and view all the answers

What factors do lenders consider when assessing a business's financial projections and ability to repay a loan?

Cash flow, ability to return to work, and other income sources Signup and view all the answers

In case of a failed venture, what do lenders assess regarding collateral?

The insurance coverage and marketability of the collateral Signup and view all the answers

What do lenders consider when assessing business conditions?

Economic trends, community trends, and seasonality Signup and view all the answers

Why are lenders more likely to invest in a new business if there is a substantial financial commitment from the owner?

To easily back out if the venture fails Signup and view all the answers

What can insufficient personal capital lead to in a business?

Equity or debt in a business Signup and view all the answers

What are commercial loans divided into?

Short-term, long-term, and intermediate-term (1-5 years) Signup and view all the answers

What does Venture Capital provide to companies?

Seed, start-up, and first-stage finance Signup and view all the answers

What is the term for the money invested in current assets like raw material, finished goods, machinery, equipment, and furniture?

Fixed Capital Signup and view all the answers

What is the term for the money required for the day-to-day operations of a business or enterprise?

Working Capital Signup and view all the answers

Which source of finance involves profit earned by an entrepreneur and may be used to finance the future needs of a firm?

Retained Profit Signup and view all the answers

What involves taking goods, machinery, or plant on credit basis for a particular time period by giving bank security to the supplier?

Deferred Credit Signup and view all the answers

What can insufficient personal capital lead to in a business?

Greater risk of insolvency Signup and view all the answers

What do lenders assess when considering the ability of a new business to repay a loan?

Economic trends Signup and view all the answers

Which type of loan covers operational expenses like rent, insurance, advertising, inventory, or salaries?

Short-term loan Signup and view all the answers

What is the term for the money invested in current assets like raw material, finished goods, machinery, equipment, and furniture?

Working capital Signup and view all the answers

What type of finance provides seed, start-up, and first-stage finance to companies with business potential but lack access to public securities markets or credit-oriented institutions?

Venture Capital funding Signup and view all the answers

What do lenders assess when determining if collateral will cover a loan?

Insurance policies Signup and view all the answers

Entrepreneurial Finance Fundamentals Quiz

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Questions and Answers

What is the term for the owner's own money, which fulfills a limited requirement of the enterprise?

Which type of capital is the money invested in current assets like raw material, finished goods, machinery, equipment, and furniture?

What is the term for the money required for the day-to-day operations of a business or enterprise?

Which source of finance involves profit earned by an entrepreneur and may be used to finance the future needs of a firm?

What may be used for fund, such as PF, insurance policy, investment, and building, by the owner?

What involves taking goods, machinery, or plant on credit basis for a particular time period by giving bank security to the supplier?

What factors do lenders consider when assessing a business's financial projections and ability to repay a loan?

In case of a failed venture, what do lenders assess regarding collateral?

What do lenders consider when assessing business conditions?

Why are lenders more likely to invest in a new business if there is a substantial financial commitment from the owner?

What can insufficient personal capital lead to in a business?

What are commercial loans divided into?

What does Venture Capital provide to companies?

What is the term for the money invested in current assets like raw material, finished goods, machinery, equipment, and furniture?

What is the term for the money required for the day-to-day operations of a business or enterprise?

Which source of finance involves profit earned by an entrepreneur and may be used to finance the future needs of a firm?

What involves taking goods, machinery, or plant on credit basis for a particular time period by giving bank security to the supplier?

What can insufficient personal capital lead to in a business?

What do lenders assess when considering the ability of a new business to repay a loan?

Which type of loan covers operational expenses like rent, insurance, advertising, inventory, or salaries?

What is the term for the money invested in current assets like raw material, finished goods, machinery, equipment, and furniture?

What type of finance provides seed, start-up, and first-stage finance to companies with business potential but lack access to public securities markets or credit-oriented institutions?

What do lenders assess when determining if collateral will cover a loan?

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