Strayer Bus402 quiz 8

Question 1

1. Typically, a minimum loan amount from a Savings & Loan is:

   Answer

   		$10,000.
   		$30,000.
   		$50,000.
   		$100,000.

2 points

Question 2

1. In asset-based borrowing, the ________ is the percentage of an asset's value that a lender will lend.

   Answer

   		prime rate
   		margin rate
   		advance rate
   		discounted rate

2 points

Question 3

1. A ________ is an agreement with a bank that allows a small business to borrow up to a predetermined specified amount during the year without making an application each time.

   Answer

   		term loan
   		factor
   		line of credit
   		floor plan

2 points

Question 4

1. Grants to small businesses, made to strengthen the local economy in cities and towns that are considered economically distressed, are made by:

   Answer

   		the Department of Housing and Urban Development.
   		a local development company.
   		the Farmers Home Administration.
   		the Economic Development Administration.

2 points

Question 5

1. This program was started to encourage small businesses that wanted to expand their research and development efforts. It has made over 36,000 awards in excess of $10 billion.

   Answer

   		Small Business Technology Transfer Act
   		Local development companies
   		The SBA Capline program
   		Small Business Innovation Research Program

2 points

Question 6

1. A(n) ________ is a hybrid between a conventional loan and a bond; at its heart it is a bond, but its terms are tailored to the borrower's individual needs, as a loan would be.

   Answer

   		private placement
   		industrial revenue bond
   		504 loan
   		zero coupon bond

2 points

Question 7

1. ________ is designed to provide working capital to small exporters by providing loan guarantees of 90 percent of the loan amount up to $1.5 million.

   Answer

   		A Capline program
   		A Section 504 loan
   		An LDC loan
   		An export working capital program

2 points

Question 8

1. A popular form of debt financing with large companies, a sort of corporate "IOU," which is becoming more accessible to a growing number of small companies is:

   Answer

   		stockbroker-based loans.
   		bonds.
   		commercial bank loans.
   		SBICs.

2 points

Question 9

1. ________ were created by the SBA in 1992 to provide loans under $35,000 that are normally shunned by banks.

   Answer

   		Microloans
   		Preferred loans
   		Seasonal line of credits
   		8(a) program loans

2 points

Question 10

1. Asset-based borrowing permits small businesses:

   Answer

   		to borrow up to 100% of the value of their inventory or their accounts receivable for the money they need for long-term goals.
   		to use normally unproductive assets–accounts receivable and inventory.
   		to obtain loans more easily but with less borrowing power than if they used an unsecured line of credit.
   		access to a source of funds ideally suited for long-term financing needs.

2 points

Question 11

1. Savings and loan associations typically specialize in loans for:

   Answer

   		equipment.
   		inventory.
   		real property.
   		accounts receivable.

2 points

Question 12

1. A ________ makes only intermediate and long-term SBA guaranteed loans. It specializes in loans many banks would not consider.

   Answer

   		small business investment company
   		local development company
   		small business lending company
   		MESBIC

2 points

Question 13

1. ________ is a method of financing frequently employed by retailers of "big ticket items"–autos and major appliances.

   Answer

   		Discounted installment contracts
   		Trade credit
   		Installment loans
   		Floor planning

2 points

Question 14

1. For small businesses, ________ are the heart of the financial market.

   Answer

   		banks
   		finance companies
   		private placement
   		insurance companies

2 points

Question 15

1. The most common method of SBIC financing is the:

   Answer

   		equity instrument.
   		debt instrument combined with equity investment.
   		debt instrument.
   		line of credit.

2 points

Question 16

1. A central business district is:

   Answer

   		the traditional center of town.
   		a plan that contains 12 to 50 stores and has a department store as a leading tenant.
   		a type of "mall" that has experienced 1500 percent growth over the last 5 years.
   		a shopping area that draws its customers primarily from the immediate local area.

2 points

Question 17

1. Which of the following sets of city factors does an entrepreneur need to consider when choosing a location for his/her new business?

   Answer

   		The business growth potential
   		Business climate and labor market
   		Proximity to the target market and raw materials
   		The availability of transportation, public services, and police and fire protection

2 points

Question 18

1. Some cities develop ________ in cooperation with private industry for the benefit of manufacturers.

   Answer

   		incubators
   		central business districts
   		industrial parks
   		high visibility locations

2 points

Question 19

1. ________ is a publication that provides important data to aid entrepreneurs in their search for the best location.

   Answer

   		Consumer Reports
   		Index of Retail Saturation
   		Survey of Buying Power
   		Sales Conversion Index

2 points

Question 20

1. The area from which a small business expects to draw customers over a reasonable time span is its:

   Answer

   		trading area.
   		metropolitan statistical area.
   		enterprise zone.
   		incubator.

2 points

Question 21

1. A Geographic Information System (GIS):

   Answer

   		is a software package combining the ability to draw detailed maps with the power to search through databases.
   		records data not available through the census and includes eleven indicators of economic growth.
   		contains the name of every street in the country and detailed block statistics for 345 urban areas.
   		breaks down the population, retail sales, etc., by census region.

2 points

Question 22

1. TIGER:

   Answer

   		is a software package combining the ability to draw detailed maps with the power to search through databases.
   		records data not available through the census and includes eleven indicators of economic growth.
   		contains the names of every street in the country and detailed block statistics for 345 urban areas.
   		breaks down the population, retail sales, etc. by census region.

2 points

Question 23

1. As the service economy has grown, a business location being used more and more by service businesses is:

   Answer

   		the industrial park.
   		home.
   		central business districts.
   		outlying areas.

2 points

Question 24

1. ________ is a system that divides a county or a city into small cells or districts to control the use of land, buildings, and sites.

   Answer

   		An enterprise zone
   		Zoning
   		TIGER
   		A central business district

2 points

Question 25

1. The value of the floor space in a retail store depends upon:

   Answer

   		the merchandise in that area.
   		the type of store and customer.
   		the number of salespeople servicing the area.
   		its proximity to aisles and entrances.

2 points

Question 26

1. Incubator facilities are established in order to:

   Answer

   		enhance economic development and diversify the local economy.
   		revitalize central business districts.
   		centralize types of businesses and provide tax breaks to those businesses.
   		encourage businesses to locate in economically depressed areas of a city.

2 points

Question 27

1. The manufacturing layout that groups workers and equipment according to the general function performed, and that works best with short production runs or when there are considerable variations in the finished product, is called:

   Answer

   		process layout.
   		fixed-position layout.
   		function layout.
   		product layout.

2 points

Question 28

1. A(n) ________ layout arranges displays in a rectangular fashion with parallel aisle. It is a formal layout that controls the traffic flow through the store.

   Answer

   		free-form
   		grid
   		angled
   		boutique

2 points

Question 29

1. When manufacturing large, bulky products, it is sometimes necessary to bring the materials to a specific spot and do the assembly in one place. This type of layout is know as a:

   Answer

   		process layout.
   		fixed-position layout.
   		function layout.
   		product layout.

2 points

Question 30

1. Approximately ________ of a store's customers will go more than halfway into the store.

   Answer

   		one-fourth
   		one-half
   		one-third
   		three-fourths