1. Which alternative is not a feature of Micro Credit or Micro Finance Institutions?

—>> The short span of business life

The smallness of savings collected (from the depositors)

The simplicity of operations

The absence of asset-based collateral

2. Identify a benefit of hire purchase

The businessman will have all the equipment, machine, and other assets from his savings

The businessman will be able to hire the equipment to others

The businessman will be able to employment every hand he needs

—>> The businessman would be able to expand his business faster than the sole reliance on his savings would allow

3. To arrive at a realistic capital requirement, the business man should not ask this question

Why do I need this capital?

When do I need the money?

—>> In what denominations do I need the money?

Where can I obtain the money?

4. Who is an Entrepreneur?

A partnershi

—>> A sole trader

A coropration

A government business

5. What is the main desire of NGOs in venturing into micro financing?

—>> To provide credit to a large portion or percentage of economically active population who are excluded from benefiting from the financial services of the banks or financial institutions of the formal sector

To compete with micro businesses

To protect their own interest

To provide funding to government

6. The Cooperative Association plays the following roles except

They come together in order to eliminate middle man who exploit buyers or sellers and money lenders who charge high interest

They do not aim to maximize profit like the private business man

They emphasize meeting the need of the members effectively and efficiently

—>> They aim to maximize profit like the private business man

7. These are some assets of the business that can be changed to money except

Equipment and tools

—>> Accounts payable

Motor vehicles

Stocks of goods ready for sale

8. Which of the following is not a basic source of start-up funds for the micro business owner?

—>> Bank borrowing

Hire purchase

Owner’s equity

Loan from family members

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