Directions: Financial Aspects of BusinesS - Capital Answer the following questions. 1. Which of the following best describes capital? A. What a business is worth B. The monetary funds invested in a project C. The level of experience the manager of a business has D. What equipment a business needs 2. Which of the following is a disadvantage of equity capital? A. You must repay or face the possibility of bankruptcy B. Your credit standing may be lowered by the use of equity capital C. You must offer collateral in the form of valuable property D. You must contend with the investor as a co-owner of the business 3. Which of the following are the largest lending agencies in the United States? A. Credit unions B. Banks C. Suppliers D. Business owners

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