Question 1

No dividends can be paid to the common stockholders until preferred stock dividends have been paid.

Accepted Answer

A) True 
 B)False

Question 2

Preferred stockholders usually retain the right to vote for company directors.

Accepted Answer

A) True 
 B)False

Question 3

What is the purpose of small business investment companies?

Accepted Answer

Small business investment companies (SBI

Question 4

Short-term securities have a maturity period of one to five years.

Accepted Answer

A) True 
 B)False

Question 5

In the context of small businesses, which of the following is true of debt securities?

Accepted Answer

A)  Commercial banks prefer to make long-term loans. 
B)  Publicly issued debt is commonly used by small firms. 
C)  Small companies rely on loans from commercial banks. 
D)  Insurance companies prefer to make short-term loans. 
A)  Commercial banks prefer to make long-term loans. 
B)  Publicly issued debt is commonly used by small firms. 
C)  Small companies rely on loans from commercial banks. 
D)  Insurance companies prefer to make short-term loans.

Question 6

In the context of small businesses, which of the following statements regarding common stock is true?

Accepted Answer

A)  Common stockholders have an enforceable claim to dividends. 
B)  It represents the owners' interest. 
C)  Common stockholders are paid before preferred stockholders. 
D)  It conveys no voting rights to its holder. 
A)  Common stockholders have an enforceable claim to dividends. 
B)  It represents the owners' interest. 
C)  Common stockholders are paid before preferred stockholders. 
D)  It conveys no voting rights to its holder.

Question 7

In the context of small firms, differentiate between common stockholders and preferred stockholders.

Accepted Answer

Common stockholders are the real owners

Question 8

_____ are relatively permanent and are necessary for the functioning of the business.

Accepted Answer

A)  Trade credits 
B)  Fixed assets 
C)  Current assets 
D)  Accounts receivables 
A)  Trade credits 
B)  Fixed assets 
C)  Current assets 
D)  Accounts receivables

Question 9

Which of the following is true of the Small Business Administration?

Accepted Answer

A)  It offers environmentally friendly products for commercial sale. 
B)  It generally requires a substantial return as either equity or profit. 
C)  It helps small firms find financing at reasonable rates. 
D)  It allows small businesses to reap tax advantages by selling stock shares to workers. 
A)  It offers environmentally friendly products for commercial sale. 
B)  It generally requires a substantial return as either equity or profit. 
C)  It helps small firms find financing at reasonable rates. 
D)  It allows small businesses to reap tax advantages by selling stock shares to workers.

Question 10

_____ are wealthy individuals who invest part of their assets in high-risk, high-return ventures.

Accepted Answer

A)  Business incubators 
B)  Debt creditors 
C)  Trade creditors 
D)  Angel capitalists 
A)  Business incubators 
B)  Debt creditors 
C)  Trade creditors 
D)  Angel capitalists

No dividends can be paid to the common stockholders until preferred stock dividends have been paid.

Preferred stockholders usually retain the right to vote for company directors.

What is the purpose of small business investment companies?

Short-term securities have a maturity period of one to five years.

In the context of small businesses, which of the following is true of debt securities?

In the context of small businesses, which of the following statements regarding common stock is true?

In the context of small firms, differentiate between common stockholders and preferred stockholders.

_____ are relatively permanent and are necessary for the functioning of the business.

Which of the following is true of the Small Business Administration?

_____ are wealthy individuals who invest part of their assets in high-risk, high-return ventures.

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters

Exam 7: How to Obtain the Right Financing for Your Business

No dividends can be paid to the common stockholders until preferred stock dividends have been paid.

Preferred stockholders usually retain the right to vote for company directors.

What is the purpose of small business investment companies?

Short-term securities have a maturity period of one to five years.

In the context of small businesses, which of the following is true of debt securities?

In the context of small businesses, which of the following statements regarding common stock is true?

In the context of small firms, differentiate between common stockholders and preferred stockholders.

_____ are relatively permanent and are necessary for the functioning of the business.

Which of the following is true of the Small Business Administration?

_____ are wealthy individuals who invest part of their assets in high-risk, high-return ventures.

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters