BUS402 Week 8 Quiz 2017 - $20.49   Add to cart

Exam (elaborations)

BUS402 Week 8 Quiz 2017

Question 1 2 out of 2 points When a small business is refused a loan because it is not profitable and deemed a poor credit risk, the owner can usually turn to ________ as a source of short-term funds. A) venture capital companies B) trade credit C) stockbrokers D) loans from insurance companies Question 2 2 out of 2 points The SBA's ________ program offers short-term capital to growing companies seeking to finance seasonal buildups in inventory or accounts receivable. A) The Direct Loan B) CDC C) Immediate Participation Loan D) CAPLine Question 3 2 out of 2 points The ________ loan is based not on creditworthiness, but on the borrower's reputation and A) reliability. B) Line of credit C) Discounted installment contract D) Character Question 4 2 out of 2 points SBICs: A) were chartered by the SBA to help start-up companies find private financing from commercial banks and finance companies. B) provide short-term debt-based capital to small businesses through the sale of the debt to private investors. C) cannot invest in or lend money to a business for more than five years. D) were created by the Small Business Investment Act to use a combination of private and federal guaranteed debt to provide long-term capital to small businesses Question 5 2 out of 2 points The most common form of secured credit is: A) accounts receivable financing. B) inventory financing. C) floor planning. D) discounted installment contracts. Question 6 2 out of 2 points Insurance companies typically make two types of loans: A) policy loans and mortgage loans. B) asset-based, inventory and discounted accounts receivable. C) short-term and policy loans. D) mortgage loans and unsecured loans. Question 7 2 out of 2 points The most common method used by commercial finance companies to provide credit to small businesses is: A) asset-based. B) insurance-based. C) unsecured lines of credit or "character loans." D) balance-sheet based. Question 8 2 out of 2 points A ________ is an agreement with a bank that allows a small business to borrow up to a predetermined specified amount during the year without making an application each time. A) term loan B) factor C) line of credit D) floor plan Question 9 2 out of 2 points Typically, a minimum loan amount from a Savings & Loan is: A) $50,000 B) $2 million C) $1 million D) $100,000 Question 10 2 out of 2 points The most common method of SBIC financing is the: A) equity instrument. B) debt instrument combined with equity investment. C) debt instrument. D) line of credit Question 11 2 out of 2 points Savings and loan associations typically specialize in loans for: A) equipment. B) inventory. C) real property. D) accounts receivable. Question 12 2 out of 2 points ________ were created by the SBA in 1992 to provide loans under $35,000 that are normally shunned by banks. A) Microloans B) Preferred loans C) Seasonal line of credits D) 8(a) program loans Question 13 2 out of 2 points A loan from a stockbroker, based on the stocks and bonds in the customer's portfolio: A) tends to be at a higher rate than a bank but easier to obtain. B) can be "called" for payment in a matter of hours or days. C) is for a maximum of $50,000. D) has a fixed repayment schedule and must be paid within 90 days. Question 14 2 out of 2 points Asset-based borrowing permits small businesses: A) to borrow up to 100 percent of the value of their inventory or their accounts receivable for the money they need for long-term goals. B) to use normally unproductive assets such as accounts receivable and inventory. C) to obtain loans more easily but with less borrowing power than using unsecured lines of credit. D) access to a source of funds ideally suited for long-term financing needs. Question 15 2 out of 2 points A(n) ________ is a private nonprofit financial institution that will make small loans to its members for the purpose of starting a business. A) SBIC B) private placement C) credit union D) insurance company Question 16 2 out of 2 points The Americans with Disabilities Act of 1990 requires that: A) businesses with more than 25 employees comply fully with the Act by June 1993. B) all buildings be remodeled to accommodate any disabled customer or employee. C) all businesses must accommodate all disabled customers or job candidates, regardless of the cost. D) buildings occupied after January 23, 1993 must be designed to accommodate disabled customers and job candidates. Question 17 2 out of 2 points The value of the floor space in a retail store depends upon: A) the merchandise in that area B) the number of salespeople servicing the area C) its proximity to aisles and entrances D) the type of store and customer Question 18 2 out of 2 points The manufacturing layout that groups workers and equipment according to the general function performed, and that works best with short production runs or when there are considerable variations in the finished product, is called: A) process layout. B) fixed-position layout. C) function layout. D) product layout. Question 19 2 out of 2 points A(n) ________ layout divides a store into a series of individual shopping areas, each with its own theme. This layout can create a distinctive image for a business. A) free-form B) grid C) angled D) boutique Question 20 2 out of 2 points Generally speaking, the one location that most small businesses have difficulty surviving in and therefore should avoid is: in outlying areas Question 21 2 out of 2 points Approximately ________ of a store's customers will go more than halfway into the store. A) three-fourths B) one-fourth C) one-third D) one-half Question 22 2 out of 2 points A(n) ________ layout arranges displays in a rectangular fashion with parallel aisle. It is a formal layout that controls the traffic flow through the store. A) free-form B) grid C) angled D) boutique Question 23 2 out of 2 points A(n) ________ layout has the advantage of creating a relaxed, friendly shopping atmosphere encouraging shoppers to linger and increasing the number of impulse purchases. A) free-form B) grid C) angled D) boutique Question 24 2 out of 2 points The manufacturing layout that arranges workers and equipment according to sequence of operation and is best suited for highly standardized or mass-produced products is called: A) process layout. B) fixed-position layout. C) function layout. D) product layout Question 25 2 out of 2 points The area from which a small business expects to draw customers over a reasonable time span is its: A) trading area. B) metropolitan statistical area. C) enterprise zone. D) incubator. Question 26 2 out of 2 points An interstate trucking firm would be most concerned with which selection criterion at the state level? A) Business climate B) Proximity to markets C) Proximity to raw materials D) Wage rates Question 27 2 out of 2 points Incubator facilities are established in order to: A) enhance economic development and diversify the local economy. B) revitalize central business districts. C) centralize types of businesses and provide tax breaks to those businesses. D) encourage businesses to locate in economically depressed areas of a city. Question 28 2 out of 2 points A major factor that could increase the wage rate in an area would be: Unions Question 29 2 out of 2 points The ________ serves a large trading area (10 to 15 miles or more), contains from 50 to 100 stores, and has several major department stores as its anchors. A) neighborhood shopping center B) community shopping center C) regional shopping mall D) central business district Question 30 2 out of 2 points Some cities develop ________ in cooperation with private industry for the benefit of manufacturers. A) incubators B) central business districts C) industrial parks D) high visibility locations

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