M3

Question 1

TYPES OF FINANCE

Answer 1

○ Banking
○ Leverage or debt
○ Investments
○ Money
○ Markets
○ Credit

Question 2

Who said this

“Money isn’t the most important thing in life, but it’s reasonably close to oxygen on the ‘gotta have it’ scale.”

Answer 2

ZIG ZIGLAR

Question 3

What did Zig Ziglar say

Answer 3

“Money isn’t the most important thing in life, but it’s reasonably close to oxygen on the ‘gotta have it’ scale.”

Question 4

YOU DON’T NEED MONEY TO MAKE MONEY

Answer 4

● Follow your passion
● Fake it ‘til you make it
● Entrepreneurs are born, not made
● It takes money to make money

Question 5

T/F “I assumed that raising money was even an option.”

Answer 5

FALSE : NOT EVEN

Question 6

T/F? “Access to start-up capital even when you don’t need it can stunt your growth.”

Answer 6

T

Question 7

T/F?
“It does not take money to make a whole lot of money.”

Answer 7

FALSE: It often takes money

Question 8

An involuntary fee levied on individuals or corporations and enforced by a government entity- whether local, regional, or national; in order to finance government activities.

Answer 8

TAX

Question 9

TYPES OF TAXES

Answer 9

○ Income tax
○ Corporate tax
○ Sales tax
○ Property tax
○ Tariff
○ Estate tax

Question 10

REASONS OF NOT PAYING TAXES

Answer 10

○ Having no idea on how to plan what is needed to be paid: ignorance
○ More concerned with perfecting the product
○ More concerned with selling the product
○ Greediness, confusion, forgetfulness

Question 11

PAYING TAXES IDEAS

Answer 11

○ Search for basic accounting information
○ Find an accountant
○ Have a plan

Question 12

T/F?

A CHECK IN HAND MEANS SOMETHING

Answer 12

F: IT MEANS NOTHING

Question 13

Is a document which orders a bank to pay a particular amount of money from a person’s account to another individual’s or company’s account in whose name the checkbook has been made or issued

Answer 13

CHECK

Question 14

Is a slang for a check that cannot be processed because the account holder has nonsufficient funds.

Answer 14

BOUNCED CHECK

Question 15

NSF MEANS

Answer 15

NONSUFFICIENT FUNDS

Question 16

WHY DO CHECK BOUNCE?

Answer 16

• YOU CAN WRITE ANYTHING
• ACCIDENTS HAPPEN
• CLOSE ACCOUNT
• STOP PAYMENT
• ISSUE WITH THE CHECK

Question 17

Also known as “money”, in physical form

Answer 17

CASH

Question 18

Essentially the movement of money in and out of your business.

Answer 18

CASH FLOW

Question 19

TYPES OF CASH FLOW

Answer 19

• OPERATING ACTIVITIES
• INVESTING ACTIVITIES
• FINANCING ACTIVITIES

Question 20

all the things a company does to bring its
product and services to market on an
ongoing basis.

Answer 20

OPERATING ACTIVITES

Question 21

refers to the purchase and sale of long term
assets and other business investment,
within a specific reporting period.

Answer 21

INVESTING ACTIVITIES

Question 22

activities that involve the inflow and
outflow of money ( buy and sell of product or asset, stocks loans, maintaining accounts.

Answer 22

FINANCING ACTIVITIES

Question 23

when you borrow money that has to be paid back usually with interest

Answer 23

LOAN

Question 24

TWO CATEGORIES OF LOAN

Answer 24

• UNSECURED LOANS
• SECURED LOANS

Question 25

is a loan that doesn’t require any type of collateral instead relying on a borrower’s assets as security (students loans, personal loans, credit cards)-interest and fees.

Answer 25

UNSECURE LOANS

Question 26

are business or personal loans that require collateral as a condition of borrowing. , lower interest rate, huge amount, ( mortgages and car loans)

Answer 26

SECURED LOANS

Question 27

TOP FOUR MOST COMMON TYPES OF BANK LOANS

Answer 27

○ Personal Loan ○ Credit Card ○ Home Equity Loan ○ Business Loan

Question 28

T/F? BORROW MONEY BEFORE YOU NEED IT

Answer 28

T

Question 29

T/F? “A bank is a place that will lend you money if you can prove that you need it.”

Answer 29

F: YOU DON'T NEED IT

Question 30

T/F? PREPAYMENT IS KING: REGARD STANDARD PAYMENT TERMS

Answer 30

F: REGARD

Question 31

Settlement of debt or installment loan in advance of its official due date.

Answer 31

PREPAYMENT

Question 32

STRATEGIES TO ENSURE FASTER PAYMENT

Answer 32

○ Build trust immediately ○ Be clear with your payment terms ○ Be aggressive with your timeline

Question 33

T/F? HIRING A PERSONAL ACCOUNTANT IS A MONEY WELL SPENT

Answer 33

T

Question 34

THREE REASONS TO HIRE AN ACCOUNTANT

Answer 34

○ Accountants save you money ○ Accountant save you time ○ Accountant are not that expensive

Question 35

T/F? THERE’S A DOWNSIDE ON HAVING INVESTORS

Answer 35

T

Question 36

is an asset or item acquired with the goals of generating income or appreciation

Answer 36

INVESTMENT

Question 37

In economic sense, it is the purchase of goods that are not consumed to day but are used in the future to create wealth

Answer 37

INVESTMENT

Question 38

In finance, it is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit

Answer 38

INVESTMENT

Question 39

TYPES OF INVESTORS

Answer 39

○ Banks ○ Angel Investors ○ Peer-to-peer Lenders ○ Venture Capitalists ○ Personal Investors

Question 40

ASSUMPTIONS ABOUT OUTSIDE INVESTORS

Answer 40

○ Finding investors will be easy ○ When you receive a yes from an investors, all your money problems will go away ○ Business will immediately get better

Question 41

Also called the total sales

Answer 41

REVENUE

Question 42

The income generated from sale of goods or services, or any other use of capital or assets, associated with the main operations of an organization before any costs or expenses are deducted

Answer 42

REVENUE

Question 43

Sales Price + Number of units sold

Answer 43

SALES REVENUE

Question 44

WHY SHOULD A BUSINESS FOCUS ON BUILDING REVENUE?

Answer 44

○ Attracts more investors ○ Profitability ○ Employees ○ Customers

Question 45

Who said this? “If I have nothing to sacrifice, I have nothing to gain.”

Answer 45

CATHERINE NDERBA

Question 46

What did Catherine Nderba say?

Answer 46

“If I have nothing to sacrifice, I have nothing to gain.”

Question 47

T/F? Use only one bank to minimize risk

Answer 47

FALSE: USE DIFFERENT BANKS