Chapter 6 Review

Private investors who fund start-up businesses are called ____.

• banks

• angel investors

• investment funds

• entrepreneurs

A(n) ____ is a written statement of goals and objectives for a business with a strategy to achieve them.

• financial statement

• summary

• business plan

• resume

The movement of money into and out of a business is called ____.

• cycle of money

• spending

• cash flow

• transfer of funds

____ is an asset pledged that will be claimed by a lender if the loan is not repaid.

• collaterall

• goods

• principle

• interest

A person who starts a new business or purchases an existing business is a(n) ____.

• capitalist

• manager

• entrepreneur

• boss

Capital brought into a business in exchange for a percent of ownership in the business is called ____.

• funding

• debt management

• liabilities

• equity financing

____ are critical skills necessary to perform the required work-related tasks of a position.

• procedures

• job-specific skills

• critical steps

• management skills

A ____ is someone with experience who can provide advice, suggestions, and ideas.

• professor

• manager

• mentor

• teacher

____ is the process of gathering and analyzing of information about a business.

• surveying

• market research

• analysis

• financial reporting

The ____ is a sentence in a business plan that describes the purpose of the business.

• mission statement

• objective

• summary

• opening