Chapter 6 Quiz:

A break-even analysis is a: a. breakdown of how many children need to be enrolled to break even financially and make a profit. b. comparison of local pricing to set tuition rates to break even financially. c. contrast of personal assets invested into the center to projected profit. d. financial analysis ensuring each investor shares an even profit margin

A

A statement showing the amount of outstanding tuition owed is an example of which type of report? a. accounts receivable b. budget comparison report c. income statement d. statement of financial position

A

Which of the following would be considered variable costs for operating a child care program? a. classroom disposable supplies like paper, crayons, and paint b. food for child snacks and meals c. the cook's salary d. property insurance e. teacher salaries

A,B,E

hat are the potential consequences of a center losing reserve funds? a. closure of the center b. diminished program quality c. loss of program accreditation d. mandated reduction of program capacity e. reduction in staff

A,B,E

What should a center consider when determining tuition rates? a. a break-even analysis presuming full tuition from each child b. local comparable centers' rates c. payroll for staff d. profit margins when the center is 100% filled e. the type of program and what is reasonable for familie

B,C,E

Which of the following could provide resources to support the start-up costs of a center? a. accreditation agencies b. company sponsorships c. government grants d. licensing specialists e. philanthropic groups

B,C,E

Which of the following would be considered fixed costs for operating a child care program? a. assistant teacher salaries b. classroom disposable materials like soap, cleaning products, and napkins c. electricity, Internet, phone, and other utilities d. rent or mortgage payments e. the director's salary

C,D,E

A good fund raising campaign will focus on: a. a general request for donations allowing contributors to choose the amount. b. the mission of the center and how donations will help overall. c. a problem that the center is facing and the need for the donation. d. the value of the contribution towards the specific fundraising project.

D

Why is infant care more expensive than other age groups? a. Equipment in an infant classroom, such as cribs, is more expensive. b. Infants' share of fixed costs is higher than the fixed costs of older children. c. Parents of infants are willing to pay more than parents of older children are for care. d. The teacher-to-child ratio in infant rooms is higher than in other classrooms.

D

Busy Bee Daycare and Growing Minds Daycare collaborated to submit a proposal in order to hire a specialist to teach their students about gardening. How have these two programs worked together to secure funding? a. They approached donors together to increase chances of success. b. They hired a consultant to create a joint fund raising plan. c. They prepared a grant to implement a joint program together. d. They shared payroll resources to hire a gardening expert.

They prepared a grant to implement a joint program together

What does the U.S. Small Business Administration (SBA) recommend as the first step to take when starting a child care business? a. answer a set of basic questions about your start-up business b. apply for a loan c. establish a board of trustees d. secure funds through personal assets

a. answer a set of basic questions about your start-up business

Start-up capital is the money available: a. before the center is open and during initial program operation. b. for the first 6 months of the center's operation. c. prior to the director being hired. d. through loans and outside investments

a. before the center is open and during initial program operation.

If a family does not pay their tuition, the director should approach the situation as a: a. business leader and work with the family to collect payment. b. curriculum leader and refer the family to the financial board member. c. care giver and ensure the top priority is that the child not lose access to the program. d. social worker and find out if the family is facing financial hardships with which the center can help.

a. business leader and work with the family to collect payment

While researching a child care business to purchase, it is essential to maintain: a. candidness. b. confidentiality. c. detachment. d. independence.

b. confidentiality.

Who should be involved in center fund-raising? a. the director, alone b. the director and staff c. the director, staff, and the board d. the director, staff, the board, and families

d. the director, staff, the board, and families