Intro to Business Spring Final Part 2

Luke works in an accounting firm that offers services such as tax preparation and external auditing to corporate companies. Luke is currently providing consultation to a client that deals in automobile parts. In this scenario, Luke is most likely a:

Public accountant

Which of the following statements is true of loyal customers?

They forgive marketers mistakes

What is a disadvantage of being an entrepreneur?

You do not always receive a regular paycheck

The assets of Prosial Italia, a marble and granite company, amount to $400 million, and its liabilities add up to $180 million. Based on the accounting equation, Prosian Italia's owners' equity is equal to __________.

$220 million

Miller is the owner of a restaurant that has several franchises. One of the franchisees owes Miller a sum of $18,000 for the goods that he had bought from Miller on credit. In this scenario the money owed to MIller is known as _________.

Accounts receivable

In the context of balance sheets, resources owned by a firm as known as __________.

Assets

What information should NOT be included in a business plan?

Assets and Liabilities

The three kinds of basic financial statements that are prepared in financial accounting are:

Balance sheet, income statement, and statement of cash flows.

Businesses adopt and identify target markets for their products to

Maximize the impact of the cost of marketing

What is a characteristics of a great entrepreneur?

Motivated Passionate Hard Working

What is the purpose of a business plan?

States the purpose and vision of your company Create an effective strategy for growth Determine future financial needs

The management of an electronics company created the annual budget on a single assumed level of sales. The level of sales is to remain constant for the whole year. Later, the management finds it difficult to accurately measure the financial progress of the firm as the values in the estimated budget vary significantly from the actual sales. In the given scenario, the management most likely created a _____________.

Static budget

Why do you need a business plan?

To raise capital Gives an objective look at what you are doing and why Gets everyone involved to focus on the same goals

An organizational chart identifies roles, relationships, and responsibilities.

True

Increasing the value of your existing customers is a great way to drive growth.

True

Through the use of technology, marketers can lower costs and deliver greater value to their customers.

True

Your target market is the group of people who are most likely to buy your product.

True

The current liabilities of a company are reflected in the:

Wages owed to the workers for work that they have already completed.

Top-Down Budgeting is

When CEO's or Owners make a budget without input from managers or staff

In the accounting equation, assets are equal to:

liabilities plus owners' equity.