Have an account?
Skip to Content
Build your own quiz
Suggestions for you
10 questions
Show Answers
See Preview
- 1. Multiple Choice
Which of the following best describes capital?
What a business is worth
The monetary funds invested in a project
The level of experience the manager of a business has
What equipment a business needs
- 2. Multiple Choice
Which of the following is a disadvantage of equity capital?
You must repay or face the possibility of bankruptcy
Your credit standing may be lowered by the use of equity capital
You must offer collateral in the form of valuable property
. You must contend with the investor as a co-owner of the business
- 3. Multiple Choice
Which of the following are the largest lending agencies in the United States?
Credit unions
. Banks
Suppliers
Business Owners
- 4. Multiple Choice
Which of the following best describes a credit union?
A community organization providing business owners with education and donations
A government foundation created to improve people’s credit, particularly the credit of business owners
A members-only cooperative created by labor unions or groups of employees
A public establishment for the custody, loan and exchange of funds
- 5. Multiple Choice
Colin is borrowing money from his uncle to start his business. In order to help avoid misunderstandings regarding the loan, Colin should do which of the following?
Hire a lawyer
Hire his uncle as the financial director of the business
Put all agreements in writing
Involve other family members as witnesses
- 6. Multiple Choice
Which of the following is NOT a type of business risk?
Routine risk
Human risk
Economic risk
Natural risk
- 7. Multiple Choice
Which type of risks occur from fluctuations in business conditions?
Routine risk
Human risk
Economic risk
Natural risk
- 8. Multiple Choice
Employee screening and training are considered which method of handling risk?
Risk retention
Risk avoidance
Risk prevention and control
Risk transfer
- 9. Multiple Choice
Which of the following is TRUE of external theft?
It is a routine risk which is always preventable
It is the costliest human risk to businesses
It is an economic risk and should be covered by insurance
. It is the only risk which businesses have full control over
- 10. Multiple Choice
Some businesses avoid risks by doing which of the following?
Only doing business online
Purchasing multiple insurance policies
Keeping records of all transactions and customers
Considering market research
- Answer choicesTagsAnswer choicesTags