Question 1

"Cash" is an example of a fixed asset.

Accepted Answer

A) True 
 B)False  False

Question 2

Personal finance and business finance involve largely the same ideas.

Accepted Answer

A) True 
 B)False  True

Question 3

The Financial Statement that shows the financial position of a company at a particular moment in time is the:

Accepted Answer

A)  balance sheet.
B)  income statement.
C)  cash flow statement
D)  all of the above. A

Question 4

Financial Statements that predict future performance of a company are called:

Accepted Answer

A)  ad-hoc financial statements.
B)  minimum value financial statements.
C)  pro forma financial statements.
D)  all of the above.

Question 5

"Posted" interest rates at the bank are negotiable.

Accepted Answer

A) True 
 B)False

Question 6

The Sales of a company minus its Cost of Goods Sold are equal to:

Accepted Answer

A)  the operating expenses.
B)  the gross profit.
C)  the net profit.
D)  the variable expenses.

Question 7

Almost all businesses have some seasonal fluctuation in sales.

Accepted Answer

A) True 
 B)False

Question 8

A break-even number is a very precise financial tool.

Accepted Answer

A) True 
 B)False

Question 9

Money loaned to entrepreneurs by relatives and friends is called:

Accepted Answer

A)  sweat equity.
B)  family fund equity.
C)  personal equity.
D)  love money.

Question 10

BDC stands for:

Accepted Answer

A)  Business Department of Commerce.
B)  Business Development Bank of Canada.
C)  British Development Corporation.
D)  Banking for Developing Companies.

Question 11

Discuss the process and need for cash-flow planning.

Accepted Answer

The answer of Discuss the process and need for cash-flow...

Question 12

Equity is:

Accepted Answer

A)  the amount of claim an owner has on an asset.
B)  how rich someone is.
C)  the difference between assets and liabilities.
D)  all of the above.

Question 13

Venture capital companies are particularly interested in providing start-up capital for new firms.

Accepted Answer

A) True 
 B)False

Question 14

Credit Bureaus:

Accepted Answer

A)  are provincially regulated.
B)  are owned by their members.
C)  must allow individuals to see their own files.
D)  all of the above.

Question 15

Assets can depreciate even if they are not being used in a business.

Accepted Answer

A) True 
 B)False

Question 16

A new small business is only likely to sell shares through:

Accepted Answer

A)  a stock exchange.
B)  private placement.
C)  the securities commission.
D)  going public.

Question 17

The break-even point is where:

Accepted Answer

A)  all of a company's overhead is covered.
B)  a company starts to make net profit.
C)  the income from sales is equal to all of a company=s costs and expenses.
D)  all of the above.

Question 18

Loans under the Canada Small Business Financing program are negotiated through regular chartered banks.

Accepted Answer

A) True 
 B)False

Question 19

Discuss the advantages and disadvantages for each of the major sources of start-up financing.

Accepted Answer

The answer of Discuss the advantages and disadvantages for each...

Question 20

The amount of collateral required for a bank loan is negotiable.

Accepted Answer

A) True 
 B)False

Exam 5: Finances: How Will I Manage the Money

"Cash" is an example of a fixed asset.

Personal finance and business finance involve largely the same ideas.

The Financial Statement that shows the financial position of a company at a particular moment in time is the:

Financial Statements that predict future performance of a company are called:

"Posted" interest rates at the bank are negotiable.

The Sales of a company minus its Cost of Goods Sold are equal to:

Almost all businesses have some seasonal fluctuation in sales.

A break-even number is a very precise financial tool.

Money loaned to entrepreneurs by relatives and friends is called:

BDC stands for:

Discuss the process and need for cash-flow planning.

Equity is:

Venture capital companies are particularly interested in providing start-up capital for new firms.

Credit Bureaus:

Assets can depreciate even if they are not being used in a business.

A new small business is only likely to sell shares through:

The break-even point is where:

Loans under the Canada Small Business Financing program are negotiated through regular chartered banks.

Discuss the advantages and disadvantages for each of the major sources of start-up financing.

The amount of collateral required for a bank loan is negotiable.