Which of the Following Statements Is Not Correct Regarding the SBA

question 31

Multiple Choice

Which of the following statements is not correct regarding the SBA 7(A) Loan Guaranty Program?

• A) It is the most notable SBA program available to small businesses.
• B) The program accounts for 90 percent of the SBA's loan activity.
• C) The 7(A) guaranty program has a direct loan counterpart, the 7(B) direct loan program.
• D) Almost all small businesses are eligible to apply for it.
• E) A 7(A) guaranteed loan can be used for working capital.

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Definitions:

Fixed Manufacturing Overhead

Refers to the consistent, unvarying costs associated with manufacturing that do not fluctuate with production volume, like salaries of managerial staff and depreciation of factory equipment.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as salary of the factory manager and rent of the manufacturing facility.

Overhead Applied

The allocation of overhead costs to specific jobs or cost objects based on a predetermined rate.

Standard Direct Labor-Hours

The predetermined estimate of the labor hours required to produce one unit of a product.