state test

What category on a balance sheet would 20 year loan on company property fall under?

Long Term Liabilities

Which of the following is an example of behavioral segmentation?

Homeowners who are highly price sensitive

Which of the following is an example of front line employees at a health fitness club?

Greets customers

Which of the following is an example of demographic segmentation?

Homeowners with higher incomes

A firm is analyzing cash flow from the previous year. Beginning inventory balance was $5350. New inventory purchases were $6560. $4760 of items were used on work for the clients. What was the ending inventory value?

$7150

A mechanic generates $1,000 in revenue per repair, with a gross margin of 40%. The mechanic needs to earn $10,000 in gross margin per month to break even. Through experience, he finds that 20% of active prospects buy within 30 days. How many prospects should the mechanic have in the active client listings at all times, at a medium?

125

Which is a benefit of buying a successful existing business?

A proven operation

An independent pizza operator wants to reach customers who eat pizza at a competing national chain. Which is a strategy for identifying those customers?

Accept competitor coupons

Which expense is fixed

Property lease

A competitor launches a new product that reduces your revenues, what type of risk would this fall under?

Business risk

If you are opening a new business and want to know more about potential competitors in that area, which resource would be useful for you?

Chamber of commerce

Which component of a business plan addresses a company's understanding of why that business would succeed in specific marketplace?

Competitive analysis

What category on a balance sheet does inventory fall under?

Current Assests

What are two traits of successful entrepreneurs?

Determined and proactive

What is a drawback of a public corporation?

Greater financial reporting obligation

Which exit strategy is used when a clothing manufacturing company sells shares of stock to the public?

Initial public offering

How can I reach price conscious consumers?

Offer coupons

Which of the following is an example of geographic segmentation?

Owners of homes in newly built neighborhoods

Which of the following is an example of psychographics segmentation?

Owners of homes who view their landscaping as their creative personalitiy

What is considered to be the primary risk for an entrepreneur who is launching a start-up company?

Personal Financial insecurity

What is a comm drawback of an existing business?

Potential for being misled on viability

What is a consequence for a real estate agent who violates confidentiality by discussing the client's personal income after work at a party?

Probable loss of current and future clients

A landscaper believes that if a value proposition can be identified that makes the business stand out, the business will grow. Which three strategies are considered potential value proposition to customers of a new business

Providing extended hours Establishing online interactive scheduling offering free consultation

A new auto repair shop has introduced a new technology that will save consumers money, the owner hopes the change is newsworthy so the local media will report it to the public. Which type of promotion is that?

Publicity

A chef has created a menu specializing in items from one supplier. The owner of the restaurant is concerned about the effectiveness of the supply chain associated with this menu. What is the concern of the owner?

Reliability of supply

Which is one impact that an entrepreneur might experience as a result of an ethical violation

Reputation damage and significant loss of customers' trust

Which business risk occurs when an owner prices products incorrectly?

Risk of financial failure

An individual owns a dog grooming business and must pay self- employment tax on individual earnings. Which type of legal structure makes self- employment tax a relevant concern?

Sole proprietorship

What is a drawback of equity funding?

The entrepreneur must share profits with other equity investors

A professional wood worker that makes custom cabinets has decided to offer credit to customers with a credit card. Why would the wood worker have to raise prices after this decision?

To offer any relevant processing fees

An entrepreneur opened a business and has sufficient money to move to a new neighborhood. which requirement will eliminate a location from consideration?

Zoning

Which expense is a variable?

shipping cost