Bank A offers 3% interest on savings and charges 6% interest on loans. Unfortunately, a borrower advanced a loan of 1,000 has defaulted. How many similar loans to "good" borrowers must the bank lend out to recover all the lost money? 50 20 34 1 1 QUESTION 19 Which of the following is not a form of bootstrapping: Securing business angel investment Getting credit from suppliers Getting customers to pay up front Using your own savings Selling your car to buy second-hand equipment in a liquidation sale QUESTION 20 Which of the following would a government grant typically be classified as in business accounts: Fixed asset Equity Retained earnings Cost of sales Other income If a business has sales of 200,000 and cost of sales of 50,000, what is its gross margin? Select one: 75%150,000250,00020%25% QUESTION 22 Which of these is a current liability? Stocks Cash Debtors Creditors VAT repayable Which of the following are not allowable against corporation tax? Dividends R&D costs Interest Marketing costs Cost of sales QUESTION 24 Which of the following is true? Business angels prefer debt to equity investments Business angels are often related to the entrepreneurs they invest in Organisations can act as business angels too Business angels invest most of their wealth in other people's businesses Business angels are usually experienced businessmen QUESTION 25 Which of the following is not an example of financial bootstrapping? Credit cards Taking out a business loan from a bank Bartering Sweat equity Selling property and renting instead