Business and Personal Finance © 2007

Chapter 18: Developing a Financial Plan

Practice Tests

1
_______ is the money you need to establish a business, operate it for the first few months, and expand it once it stabilizes.
A)capital
B)operating capital
C)fixed expenses
D)start-up costs
2
_______ is the money required to start your business.
A)reserve capital
B)start-up capital
C)fixed expenses
D)capital
3
An example of a one-time start-up cost is _______.
A)rent
B)permits
C)inventory
D)office furniture
4
A _______ is an example of an asset that is unique to a particular business.
A)desk
B)delivery truck
C)hydraulic lift
D)computer
5
The amount of capital needed to operate a business for the first few months or years is called _______.
A)start-up capital
B)projected income
C)fixed expenses
D)operating capital
6
Statements that predict the financial position of a business in the months and years to come are called _______.
A)charts of accounts
B)financial forecasting
C)projected financial statements
D)statements of cash flows
7
_______ are expenses that may change.
A)fixed expenses
B)start-up costs
C)cash flows
D)variable expenses
8
Money that is set aside for unexpected costs or opportunities is called _______.
A)reserve capital
B)operating capital
C)start-up capital
D)capital
9
A(n) _______ helps a business owner estimate a business's future worth.
A)projected statement of cash flows
B)projected balance sheet
C)projected income statement
D)statement of required start-up capital
10
A list of all the general ledger accounts that a business will use is called the _______.
A)projected balance sheet
B)chart of accounts
C)projected income statement
D)financial plan
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