AKS 6 Notes Review

Maya, Nora, and William are excited to start their own business. What is one of the first steps they should take?

• Get a loan

• Write a business plan

• Choose a location

• Advertise the business

Nora and William are starting a company and need to raise some money. What are the two main reasons they might need this money?

• Running operations and expanding facilities

• Marketing and running operations

• Buying supplies and hiring employees

• Running operations and expanding production

Evelyn, Anika, and Aiden are starting a lemonade stand! What will they use their initial capital for?

• Paying debts

• Covering startup costs

• Funding marketing campaigns

• Hiring employees

Mason and Aria are starting a business together! What is a key difference they should know between equity and debt funding?

• Equity funding requires full repayment

• Debt funding involves selling shares

• Equity funding comes from investors; debt funding requires repayment

• Debt funding offers ownership stakes in the company

Michael, Grace, and Daniel are brainstorming ways to fund their new business. Which of the following is NOT a valid source of a business loan?

• Family members

• Personal savings

• Office equipment as collateral

• Commercial finance companies

Olivia, Aria, and Mason are planning to secure a loan for their dream project. What should be the very first step they take?

• Checking your credit report

• Writing a loan package

• Finding collateral

• Applying to multiple lenders

Aiden, David, and William are planning to take out a loan. Which type of collateral can they use to secure their loan?

• Perishable inventories

• Cars

• Stocks and bonds

• Jewelry

Grace and Rohan are running a lemonade stand. They notice money coming in from sales and going out for buying lemons and sugar. What does "cash flow" refer to in their business?

• Profits made in a year

• Revenue generated during a specific period

• Money being transferred in and out of the business

• Total expenses paid by the company

Abigail and Elijah are applying for a business loan. What will the lender check to decide if they are eligible?

• Profit margins and inventory

• Business location and assets

• Credit score and financial statements

• Loan purpose and repayment history

Elijah, Avery, and Anika are working on a school project about businesses. They wonder: Why do businesses run market surveys?

• To test advertising effectiveness

• To understand customer needs and wants

• To find new locations for expansion

• To monitor competitor pricing