Unit quiz: Building and reading a capital stack for a concrete operating need

Check understanding, separately from reading

5 questions · 80% to pass · no timer. This quiz checks the lessons in this unit. These authored questions assess recognition and application of the taught distinctions, not professional qualification. You may review the lessons and retry. Repeat attempts reuse the question bank; a remembered answer is not proof of transfer to a new situation.

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Question 1

A broker proposes a $20,000 advance to a merchant whose existing revenue-linked remittance of $2,750 a week still has ten weeks to run, and describes the new cash as 'breathing room'. Both obligations collect from the same card settlements and debits total $5,350 a week while the new net proceeds are $38,500. What must the layer analysis show before this is called relief?Both claims on the same receipts, the $5,350 combined weekly outflow and the roughly 7.2 weeks of net proceeds that would cover it, plus whether the existing agreement permits the new obligation.The combined weekly figure of $3,350, because the new remittance partly offsets the old one and only the difference leaves the account.

Question 2

A wholesaler funds a $70,000 refrigeration unit expected to run for twelve years using a 26-week product at an assumed 1.2 factor, arguing that its $84,000 total is lower than a longer amortising facility's total. What is the strongest correction?The 26-week product is superior because a lower total dollar cost always indicates a better financing decision.Compare instruments by duration fit: a six-month schedule attached to a twelve-year asset leaves the merchant financing replacements and renewals long before the asset stops producing value.

Question 3

A funding statement says the merchant was advanced $50,000, but $48,000 arrived and no deductions are itemised. The merchant asks what to do before the first debit. Which response is correct?Ask for the itemised deductions that reconcile $50,000 to $48,000, and confirm in writing the total remittance, the cadence and the treatment of early payment.Treat the difference as a rounding or processing matter, since the scheduled weekly payment is already fixed and known.

Question 4

Under one reading of the receipts definition a merchant was over-collected by $425 a week, and under another reading the over-collection is $200 a week, because the provider did not deduct documented refunds. What determines the correct figure, and how should it be used?The larger figure governs, because a merchant should always claim the highest defensible number and reconcile later if the provider disagrees.The executed agreement's definition of eligible receipts determines the figure; the computed amount is recorded as a pending adjustment until a refund or credit is actually implemented and seen in the bank record.

Question 5

A provider's marketing says no personal guarantee and no blanket filing. The document presented for signature contains a limited guarantee and a filing covering all assets after acquired property. The merchant also has an existing purchase-money equipment loan. What should the adviser do?Point to the specific contradictions between the marketing and the documents, have counsel review the guarantee and filing, and check with the filing office whether the purchase-money lender's interest was perfected within the statutory window.Reassure the merchant that the guarantee will not be enforced and that the earlier filing takes priority over everything filed later.

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