Suppose You Want to Finance Your Own Restaurant

question 54

Multiple Choice

Suppose you want to finance your own restaurant. Which of the following methods of obtaining seed money would best be described as crowdfunding?

• A) Obtaining a business loan from a bank
• B) Asking your parents for the money
• C) Using a government program to obtain the money
• D) Posting the potential location, menu, and business plan to Kickstarter with an appropriate funding goal

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Definitions:

Tax Deductible

An expense that is tax deductible can reduce taxable income, thereby lowering the amount of tax owed to the government.

CRA Guidelines

Rules and recommendations provided by the Canadian Revenue Agency for tax filing and compliance.

True Lease

A leasing arrangement where the lessor retains substantial risks and rewards of ownership of the leased asset.

Down Payments

Initial payments made when purchasing costly items on credit, representing a fraction of the purchase price.