Personal finance true or false

False

Inventory is the goods retailers buy to resell.

True

Business owners use reserve capital to grow their businesses.

True

American Express is an example of a publicly held corporation.

False

Financial forecasting is the process of predicting your business's profits.

False

Fixed expenses change with business conditions and other situations.

True

Agency power legally obligates a partnership to a contract signed by one of the parties.

False

A board of trustees oversees the general affairs of a corporation.

False

A business cannot have too much inventory.

False

A closely held corporation sells its shares openly in stock markets.

True

A document that shows where a business's cash has gone is a statement of cash flows.

True

A financial plan determines how a business will keep track of its money.

True

A financial plan includes a projected 12-month balance sheet.

False

A general partner has no decision-making authority.

False

A marketing plan is a written proposal that describes a new business.

True

A parent corporation is a company that sells franchises.

True

A profit is the amount of money earned above the amount spent to keep the business operating.

True

A transaction is any activity that has an effect on the financial situation of a business.

True

Supplies, office equipment and products to sell are assets.

True

When you apply for a commercial loan, the bank will want to see a projected income statement.

True

You should estimate your business' projected revenues on the low side and its expenses on the high side.