PF Ch 16 Test

PF Ch 16 Test
1. Seventy-five percent of new business ventures are funded by___________________________________.
2. Money used to expand a business comes out of _____________________________________________.
3. What is the highest percentage of market value a home equity loan will provide?____________________
4. A home equity loan is an example of _______________________________________________________.
5. For unexpected costs, businesses often use __________________________________________________.
6. Comments from creditors are helpful to a bank when assessing a would-be borrower’s
7. Less paperwork and a shorter response time are the advantages of applying for a loan through the
8. A disadvantage of funding a business with business credit cards is _______________________________.
9. Which source of funding expects to have a major voice in a business’s decisions? _____________________
10. Which entrepreneur went bankrupt with Laugh-O-Gram Corporation but later accomplished great things?
11. __________________________ is borrowing money from a bank to finance a new or ongoing business
12. A _________________________________ is a private investment firm that works with the Small Business
Administration to provide longer-term funding for small businesses
13. _____________________________ is the ongoing expense that a person expects to have operating a
14. ________________________________________________ are the costs of setting up a business
15. ______________________________________ is a loan that does not require collateral from the borrower
16. An arrangement in which bank customers can borrow a certain amount of money from the bank
immediately is called ___________________________________________________
17. A loan based on the difference between the current market value of a home and the amount still owed on the
mortgage is __________________________________________________________________
18. _______________________________________________________ is an independent agency of the federal
government that guarantees commercial loans offers assistance to people who are starting small
businesses and to those who want to expand existing businesses
19. ______________________________________________ is a company that provides private funding for
small businesses that need a substantial amount of immediate cash
20. __________________________________________ is money borrowed from friends and family