Establishing a Business - Assessment II

Which of the following is a regulatory issue for an entrepreneur?

• Using a credit card to transact business
• Offering hire purchase options to customers
• Paying taxes to the government
• Advertising the business locally and regionally

Cash used to secure a loan at the bank is referred to as

• collateral
• fixed assets
• current assets
• fixed deposits

The condensed version of the business plan is contained in the

• executive summary
• keynote summary
• marketing plan
• feasibility study

Which of the following is NOT an element of a typical business plan?

• Legal plan
• Financial plan
• Marketing plan
• Operational plan

If a secured loan is not repaid to a financial institution, the financial institution has the authority to...

• Sue the borrower
• Unsecure the loan
• Seize the borrower's collateral
• Repay the loan for the borrower

Which section of the business plan contains the name, address, legal structure, aims and objectives of a business?

• Financial forecast
• Operational plan
• Executive summary
• Marketing plan

Which of the following is a PRIMARY source of information?

• An entrepreneur taking risks
• An entrepreneur talking to the bank about a loan
• An entrepreneur doing a survey to find out information from potential customers
• An entrepreneur using the newspapers to find information

The location of a business can be influenced by

• Social factors
• Geographical factors
• Monetary policy
• All of the above

The most important use of collateral security to the lender is that it...

• establishes financial position of the borrower
• can be seized if the borrower fails to pay
• improves the borrower's chance of getting a loan
• gives the lender an idea of the state of the business

Sources of information already published that can be used for market research by companies is called...

• Primary sources
• Secondary sources
• Qualitative data
• Quantitative data