In Order to Qualify for a Microloan from the SBA

question 61

True/False

In order to qualify for a microloan from the SBA, an entrepreneur must have adequate collateral and a proven track record of success.

Understand the principles of accounting systems and their importance in business management.

Identify the significance of separating personal and business finances.

Grasp the basic concepts and terminology of accounting and financial management.

Acknowledge the common reasons for small business bankruptcy and the importance of strategic financial planning and management.

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Definitions:

Brainstorming

A method of generating creative ideas by encouraging free thought and discussion within a group.

Groupthink

A psychological phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.

Social Facilitation

The tendency for individuals to perform tasks better when they are in the presence of others.

Delphi Technique

A structured communication technique or method, which relies on a panel of experts to forecast or make decisions through rounds of anonymous questionnaires.