SBA Financial Management & Funding Resources

Question 1

What is the primary goal of financial management in a small business?

Accepted Answer

Ensure profitability and financial health

Answer

Expand staff unnecessarily

Answer

Focus only on marketing

Answer

Avoid keeping financial records

Question 2

Which document shows a company's assets, liabilities, and equity at a specific point in time?

Accepted Answer

Balance sheet

Answer

Income statement

Answer

Cash flow statement

Answer

Budget proposal

Question 3

What is a common funding option for small businesses?

Accepted Answer

SBA loans

Answer

Personal credit cards only

Answer

Lottery winnings

Answer

Raffle contests

Question 4

Why is budgeting important for small businesses?

Accepted Answer

Plan expenses and manage resources

Answer

Increase spontaneous spending

Answer

Avoid paying taxes

Answer

Delay payrolls

Question 5

What is the main purpose of a cash flow statement?

Accepted Answer

Track cash inflows and outflows

Answer

Estimate company valuation

Answer

Determine brand awareness

Answer

Record customer complaints

Question 6

What is a venture capitalist?

Accepted Answer

Equity investor in startups

Answer

Business accountant

Answer

Loan officer

Answer

Marketing consultant

Question 7

Which financial ratio measures a company's ability to meet short-term obligations?

Accepted Answer

Current ratio

Answer

Debt-to-equity ratio

Answer

Gross margin

Answer

Net profit margin

Question 8

Why is it important to maintain a good credit score for business financing?

Accepted Answer

Improves loan opportunities and interest rates

Answer

Reduces competition

Answer

Eliminates the need for budgeting

Answer

Guarantees government contracts

Question 9

Which is an example of an alternative funding source?

Accepted Answer

Crowdfunding

Answer

Bank deposits

Answer

Employee bonuses

Answer

Internal audits