Exam 7: Financing Your Business and Accounting Practices

Many Canadians believe that Ontarians pay the highest HST rates in Canada, however, which of the following provinces actually pays more than those living in the province of Ontario?

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

It is estimated that between 75 and 85 percent of new startups use some form of bootstrapping to help finance themselves.

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(True/False)

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Question 2

Correct Answer:

Verified

True

Why is "capacity" considered the most critical of the 5 C's of credit?

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(Essay)

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Question 3

Correct Answer:

Verified

The lender will want to know exactly how you intend to repay the loan. They will consider the current or expected level of income from the business and your income that may come from any other sources.

The rate of interest that banks charge their "best customers" is called:

(Multiple Choice)

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Question 4

Collateral is a secondary source for repayment of the loan if your cash flow from the business in insufficient to fulfill the obligation

(True/False)

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Question 5

______ is when a business raises money by selling stock to investors.

(Multiple Choice)

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Question 6

Which industries are increasingly using crowdfunding to raise funds?

(Multiple Choice)

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Question 7

Explain the concept of "bootstrapping".

(Essay)

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Question 8

Capital is the cash and other liquid assets you personally have or are prepared to invest in the business; it is undoubtedly the most critical of the five factors.

(True/False)

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Question 9

By registering for an HST or GST account on income before it reaches $30,000 your business is able to claim for the HST/GST refund that you have paid on your purchases.

(True/False)

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Question 10

Which of the following sources of financing is used most frequently by entrepreneurs?

(Multiple Choice)

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Question 11

Debt financing is when a firm raises money by selling all of the following, except:

(Multiple Choice)

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Question 12

The ______ of the loan is the total amount of money you have been loaned.

(Multiple Choice)

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Question 13

______ is the cash and other liquid assets you personally have or are prepared to invest in the business.

(Multiple Choice)

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Question 14

All provinces in Canada are required to participate in the harmonized sales tax (HST) program.

(True/False)

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Question 15

Bank loans, both operating and term loans, are demand loans so that regardless of the term, the bank can and will demand they be paid back if it feels the company is getting into trouble.

(True/False)

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Question 16

The problem with using debt to finance business activities is that it can be difficult to service and a burden on your cash flows.

(True/False)

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Question 17

What are the 5 C's of Credit?

(Short Answer)

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Question 18

The supplies of real property (e.g., land, buildings, and interests in such property) are exempt from GST in Canada.

(True/False)

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Question 19

Describe the advantages of using debt to raise money for capital expenditures.

(Essay)

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Question 20

Showing 1 - 20 of 53

Many Canadians believe that Ontarians pay the highest HST rates in Canada, however, which of the following provinces actually pays more than those living in the province of Ontario?

It is estimated that between 75 and 85 percent of new startups use some form of bootstrapping to help finance themselves.

Why is "capacity" considered the most critical of the 5 C's of credit?

The rate of interest that banks charge their "best customers" is called:

Collateral is a secondary source for repayment of the loan if your cash flow from the business in insufficient to fulfill the obligation

______ is when a business raises money by selling stock to investors.

Which industries are increasingly using crowdfunding to raise funds?

Explain the concept of "bootstrapping".

Capital is the cash and other liquid assets you personally have or are prepared to invest in the business; it is undoubtedly the most critical of the five factors.

By registering for an HST or GST account on income before it reaches $30,000 your business is able to claim for the HST/GST refund that you have paid on your purchases.

Which of the following sources of financing is used most frequently by entrepreneurs?

Debt financing is when a firm raises money by selling all of the following, except:

The ______ of the loan is the total amount of money you have been loaned.

______ is the cash and other liquid assets you personally have or are prepared to invest in the business.

All provinces in Canada are required to participate in the harmonized sales tax (HST) program.

Bank loans, both operating and term loans, are demand loans so that regardless of the term, the bank can and will demand they be paid back if it feels the company is getting into trouble.

The problem with using debt to finance business activities is that it can be difficult to service and a burden on your cash flows.

What are the 5 C's of Credit?

The supplies of real property (e.g., land, buildings, and interests in such property) are exempt from GST in Canada.

Describe the advantages of using debt to raise money for capital expenditures.

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