01
True or false
1 point
True or false: A business can record a sale as revenue before receiving the customer's cash payment.
Free Practice Quiz Question List
8 Startup Finance and Funding Online Quiz Questions
Use this free practice quiz with 20 questions to review 8 Startup Finance and Funding, test your knowledge, and prepare for your next test or exam.
20 questions
02
Choose one
1 point
Which expense is most likely to rise as a business sells more products?
- A
Monthly rent
- B
Materials used to make each product
- C
Annual business license fee
- D
A one-time website development fee
03
Fill in the blank
1 point
Complete the revenue formula: Revenue=×.
04
Choose one
1 point
A founder wants to raise funds without selling ownership and accepts the obligation to repay principal and interest. Which funding source best fits those preferences?
- A
Angel investment
- B
Reward crowdfunding
- C
A loan
- D
A grant
05
Written response
1 point
A shop sells 200 items for $80 each, and each item costs $35 to make and sell. What is the total contribution toward fixed costs, in dollars?
06
Choose all
1 point
Which factors should a founder compare when assessing the full cost and terms of financing? Select all that apply.
- A
Interest
- B
Fees
- C
Collateral
- D
Personal guarantees
- E
Repayment schedule
- F
Ownership dilution
- G
Investor rights
- H
The founder's preferred office location
- I
The color of the product packaging
- J
The business's social media handle
07
Fill in the blank
1 point
Complete the cash-flow equation: Ending cash=beginning cash+−.
08
Choose one
1 point
A business has fixed monthly costs of $8,000, sells each item for $80, and has a variable cost of $35 per item. About how many items must it sell monthly to break even? Round to the nearest whole item.
- A
45 items
- B
160 items
- C
178 items
- D
225 items
09
True or false
1 point
True or false: Because grants may not require repayment, a startup can count on receiving grant funding.
- A
True
- B
False
10
Written response
1 point
A venture has $45,000 in available cash and an average monthly burn rate of $9,000. What is its runway in months?
11
Choose all
1 point
Which changes should a founder test as alternative scenarios in a cash-flow forecast? Select all that apply.
- A
The launch is delayed
- B
Costs rise
- C
Customers pay later than expected
- D
The business changes its logo color
- E
The founder prefers a different office layout
12
Written response
1 point
What is the term for a venture's average monthly net cash outflow when it spends more cash than it receives?
13
Open ended
1 point
A founder needs funding for equipment and product development and is comparing a loan with selling equity to investors. Explain one important tradeoff of each option and identify at least one factor the founder should use to decide between them.
14
Choose one
1 point
Under the material's description of U.S. Regulation Crowdfunding, which condition applies to an offering?
- A
It is exempt from securities regulation if the company is small
- B
It requires an SEC-registered intermediary and required disclosures
- C
It allows founders to promise investors guaranteed profits
- D
It requires founders to repay every investor like a lender
15
Choose one
1 point
A founder is preparing a funding request. Which approach best connects the request to the business plan?
- A
Connect the amount requested to specific milestones the funding will support
- B
Request an amount based only on a competitor's funding
- C
Avoid defining how the money will be used
- D
Treat the forecast as fixed even when new evidence changes assumptions
16
Choose one
1 point
A startup is classifying its expenses for a launch budget. Which expense is most likely to be a variable cost that rises as sales increase?
- A
Monthly rent for the business premises
- B
Packaging for each product sold
- C
An annual business license
- D
A deposit paid before opening
17
Written response
1 point
What is the standard term for funds included in a startup budget to cover the period when expenses have begun but sales are not yet sufficient?
18
Choose one
1 point
A founder needs to estimate monthly sales for a new product. Which approach best grounds the forecast in evidence?
- A
Choose the sales total that makes the business appear profitable.
- B
Assume every potential customer will buy immediately.
- C
Use preorders or a small pilot to support the sales estimate.
- D
Leave out limits on how many orders the team can fulfill.
19
Choose one
1 point
A startup estimates its launch costs and working capital at a subtotal of $71,000. If it adds a 10% contingency to that subtotal, what is the estimated funding need?
- A
$78,100
- B
$71,710
- C
$77,100
- D
$78,000
20
True or false
1 point
True or false: A business can report an accounting profit and still run short of cash if customers pay after expenses such as wages and rent are due.
- A
True
- B
False