Financial Management: Core Concepts, Third Edition

Prepping for Exams

1. In the life cycle of a business, we most closely identify a stable business with           .

   1. old age

   2. youth

   3. maturity

   4. infancy

2. Banks and other lending institutions           .

   1. frown on family funding for start-up businesses

   2. have lending models better fitted for start-up businesses compared with established businesses

   3. are in competition with the Small Business Administration for start-up loans

   4. are often the next sources of financing for businesses after personal and family contributions

3. If the SBA makes a loan guarantee, the guarantee is only           . If the original borrower defaults, the government will repay the obligation up           .

   1. to the borrower; to the loan balance

   2. to the public at large; to ...