Site MapHelpFeedbackMultiple Choice Quiz
Multiple Choice Quiz
(See related pages)

1
Which one of the following is a problem for bankers in making credit application acceptance or rejection decisions?
A)Regulations
B)Adverse selection
C)Business plans
D)Moral hazard
2
Which of the following is a TYPE II error that may be made by bankers?
A)Rejection of a proposal that is later successful
B)Rejection of a proposal that is later a business failure
C)Acceptance of a proposal that is later a business failure
D)Acceptance of a proposal that is later a success
3
Which one of the following should most help to increase consistency of banker decision-making?
A)Increased regulation
B)Training
C)Decentralisation
D)Credit-scoring
4
Which of the following may result from risk avoidance in decision-making by bankers?
A)Credit rationing
B)Credit glut
C)Credit references
D)Credit scoring
5
Which one of the following may be required by a banker to demonstrate commitment by the entrepreneur?
A)Security
B)Business plan
C)Equity stake
D)Other borrowings
6
Which one of the following would most be preferred by an entrepreneur as a source of finance?
A)Bank finance
B)Personal sources
C)Venture finance
D)Alternative finance
7
A State Scheme meant to provide security when entrepreneurs do not have access to normal sources of collateral.
A)SMART
B)Enterprise Investment Scheme
C)Small Firms’ Loan Guarantee Scheme
D)SPUR
8
An advantage of a Mutual Guarantee Scheme
A)Business meetings
B)Access to grants
C)Easier loans
D)Reduced need for security
9
A Government Award scheme to provide an alternative source of finance for technology-based small firms:
A)SMART
B)MGS
C)EIS
D)VCT
10
Which of the following concepts applies to bank decision-making?
A)Networking
B)Present value
C)Asymmetric information
D)Financial forecasting





To learn more about the book this website supports, please visit its Information Center.
(c)2006 McGraw-Hill Education Europe
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Education Europe is one of the many fine businesses of The McGraw-Hill Companies.


Entrepreneurship, Deakins 4eOnline Learning Center

Home > Chapter 4 > Multiple Choice Quiz