Please Answer ASAP

1.Mohammed wants to use equity financing but does not want to go back to investors to ask for more funds. He could rather use this other source of equity financing to fund his company's upcoming project.

		Crowdfunding
		Retained earnings
		Venture capital

2.

What is the debt-to-equity ratio of Mr. Kim's operations if he has the following

Total Liabilities = $60,000

Owner's Equity = $40,000

(formula Total Liabilities / Owner's Equity).

What is the answer and what does it mean?

		1.5, meaning that for every $1.00 of equity, Mr. Kim's business owes $1.50
		1.5, meaning that for every$1.00 of liability Mr. Kim has equity of $1.50
		1.5, meaning that Mr. Kim uses equal debt and equity in financing his business.

3.

The formula for calculating the funds required to start a business is:

Start-up costs + initial operating requirements owner's equity.

If Sarah has the following data, how much equity would she need to contribute to the business?

Total funds needed = $50,000

Start- up cost = $80,000

Operating cost = $25,000

		-$55,000.
		$105,000
		$55,000

4.

The formula for calculating the funds required to start a business is:

Start-up costs + initial operating requirements owner's equity.

If Sarah has the following data, how much equity would she need to contribute to the business?

Total funds needed = $50,000

Start- up cost = $80,000

Operating cost = $25,000

		-$55,000.
		$105,000
		$55,000

5.

Alison is a small business owner in Pickering. If she wants to know her liquidity, and measure her ability to meet short-term obligations with her most liquid assets, which ratio would she have to calculate?

		debt-to-equity ratio
		current ratio
		quick ratio
		solvency ratio

6.

With this kind of financing, the bank will allow Rashida to withdraw and deposit funds on an ongoing basis as long as the total amount withdrawn at any point in time, does not exceed the approved amount. This type of credit facility is called a

		mortgage.
		traditional bank loan.
		personal guarantee.
		line of credit.

7.

If you opted for equity financing for your business, you would have to deal with ----------

		dilution of ownership interest
		the pressure to pay interest
		frequent decision making

8.

What is the year 2 depreciation amount for an equipment with an original purchase price of $60,000. Use a 15% captial cost allowance for the calculation.

		$9,000
		$7,650
		$43,350

9.

Kwame is thinking of starting a new small business but he needs to find out if his idea is of viable commercial value. He will need ______capital to conduct research and look further into this idea.

		start-up
		seed
		venture

10.

Fatima is having challenges finding financing her small business. Among other things, this could be due to

		her family's wealthy background
		punitive conditions in government grants
		her lack of knowledge regarding financing sources
		her misunderstanding of taxation