True or False
* Grants are the best funding programmes available.
* True
* False
Explanation: Whether grants are the “best” depends on the specific needs and circumstances of the individual or business. For some, loans might be a better option.
* All grants have conditions you must meet.
* True
* False
Explanation: Most grants come with stipulations or criteria that recipients must fulfill.
* You must already be very successful to qualify for a government grant.
* True
* False
Explanation: While some grants might require proven success, many are designed specifically to help startups or struggling businesses.
* Government loans are the most common type of government funding for businesses available.
* True (This could vary depending on the context and the country)
* False
* A business plan is not required to apply for government funding.
* True
* False
Explanation: In most cases, a business plan is necessary to show how funds will be used and the potential for success.
Multiple Choice
6. Which of the following is typically a non-repayable form of financing?
* Business Loan
* Credit Card
* Mortgage
* Grant
Explanation: Grants are typically non-repayable, given they meet all conditions.
* What primary factor differentiates a grant from a loan?
* The size of the funding
* The interest rate applied
* The need for collateral
* Repayment requirement
Explanation: The main difference is that loans need to be repaid, while grants typically do not.
* For which of the following reasons might a business prefer a grant over a loan?
* A grant always has a higher amount
* A grant typically doesn’t require repayment
* A loan has more flexibility in usage
* All businesses automatically qualify for grants
Explanation: The primary appeal of a grant is that it typically doesn’t require repayment.
* Which document might a business be asked to provide when applying for both grants and loans?
* Business Card
* Social Media Profile
* Business Plan
* Product Sample
Explanation: A business plan outlines a business’s goals and how they plan to achieve them.
* If a business fails to meet the conditions of a grant, what could be a possible consequence?
* The grant turns into a loan
* They might be required to repay the grant
* They will be awarded more funds
* The business is automatically eligible for another grant
Explanation: If the conditions of a grant are not met, the grantee might be required to repay the funds.
