ELE 3010 Quiz 4
Which of the following is not one of the five C's of lending? - ✔️✔️Caution
Compensation for board members can take the form of all of the following
except: - ✔️✔️Perks, such as vacations
The sales budget: - ✔️✔️Should be prepared before developing the pro forma
income statement
Equipment would be included on the balance sheet in which section? -
✔️✔️Fixed assets
Which type of ownership is the least expensive to start? - ✔️✔️Sole
proprietorship
Liability is one of the most critical reasons for establishing a: - ✔️✔️Corporation
An entrepreneur focuses on the operating cost before completion of the sales
budget. - ✔️✔️False
Which of the following would be considered a variable expense? - ✔️✔️Raw
Materials
Which of the following is not one of the main functions of the management team
according to text? - ✔️✔️Help the entrepreneur write the business plan
____________ financing does not require any collateral. - ✔️✔️Equity
When borrowing from friends and family, the entrepreneur should avoid putting
agreements in writing to avoid future disagreements. - ✔️✔️False
The formula for break-even analysis is: - ✔️✔️Total fixed cost divided by selling
price minus variable cost per unit.
Private offerings: - ✔️✔️Must comply with Regulation D
the SBA's Microloan program provides short-term loans of up to $100,000 to
small businesses for working capital or purchase of inventory. - ✔️✔️False
Fixed expenses: - ✔️✔️are incurred regardless of sales volume
Which of the following is not one of the five C's of lending? - ✔️✔️Caution
Compensation for board members can take the form of all of the following
except: - ✔️✔️Perks, such as vacations
The sales budget: - ✔️✔️Should be prepared before developing the pro forma
income statement
Equipment would be included on the balance sheet in which section? -
✔️✔️Fixed assets
Which type of ownership is the least expensive to start? - ✔️✔️Sole
proprietorship
Liability is one of the most critical reasons for establishing a: - ✔️✔️Corporation
An entrepreneur focuses on the operating cost before completion of the sales
budget. - ✔️✔️False
Which of the following would be considered a variable expense? - ✔️✔️Raw
Materials
Which of the following is not one of the main functions of the management team
according to text? - ✔️✔️Help the entrepreneur write the business plan
____________ financing does not require any collateral. - ✔️✔️Equity
When borrowing from friends and family, the entrepreneur should avoid putting
agreements in writing to avoid future disagreements. - ✔️✔️False
The formula for break-even analysis is: - ✔️✔️Total fixed cost divided by selling
price minus variable cost per unit.
Private offerings: - ✔️✔️Must comply with Regulation D
the SBA's Microloan program provides short-term loans of up to $100,000 to
small businesses for working capital or purchase of inventory. - ✔️✔️False
Fixed expenses: - ✔️✔️are incurred regardless of sales volume
