Entrepreneurship and small business test 3
Match each figure to the correct location in the income statement worksheet
$107,245- A $73,725- B $16,355- C $30,371- D
What is the ending cash balance?
$26,125
What will be the company's beginning cash flow in July?
$85,000
Which type of intellectual property protection will safeguard a song?
Copyright
What is legal reason to practice ethics in your business?
To avoid lawsuits
Which are two benefits of using angel investors to help start a business?
Angels often accept a lower return in investment Angel investors typically do not except to be paid until the business begins making money
What is the most practical source of funding for the materials needed to complete his customers job?
Asking for an advance payment from the customer whose large order is the reason the materials are needed
What is the primary drawback of a sole proprietorship?
Unlimited liability
Match each classification with the corresponding cost
Variable cost- credit card processing Variable cost- products sold for customers to take Fixed cost- monthly lease of credit card machine Fixed cost- weekly advertising in a local newspaper
Which factor is the owner concerned about?
Variable costs
Which factor will help the HVAC repairman choose the best candidate that meets his human capital need?
Whether the performance of the candidate can be assessed
How many prospects should he landscaper have in the pipeline at all times at a minimum?
16
How many haircuts will it take to break even each month?
200
Which strategy will best identify those customers when they arrive at the diner?
Accept coupons used by competitors when customers pay their bill
Match each asset or liability with the proper category on the balance sheet
Bank loans- current liabilities Equipment- long term assets Inventory- current asserts Mortgage payment- long term liability
Which method of segmentation is the owner using?
Behavioral
Which responsibility would be included in this outsourcing?
Benefits administration
Match each business opportunity to its associated benefit and drawback
Buy a franchise - benefit:branding success Start a new business - benefit:build your own way Buy and existing business - benefit: has customers
What are three characteristics of entrepreneurs?
Disciplined, honest, responsible
Which characteristic would be beneficial to an entrepreneur?
Doesnt give up easily
Which are three rewards of entrepreneurship?
Doing work your way, potential for greater wealth, helping the community
Drag each marketing outlet to match it with the associated benefit and drawback
Email-cost effective, but easily ignored Newspaper - targets local community but has shrinking subscriber base Social media- inexpensive to produce, but requires ongoing maintenance Television- strong impact but its expensive Web banners- highly flexiblr
Which are three reasons to buy a franchise instead of starting a business from scratch?
Exclusive geographic area, proven system, easier financing
Which are the two greatest entrepreneurial risks being taken to start this business?
Financial uncertainty, loss of free time
Match the correct figure to the appropriate location in the break-even formula
Fixed costs= $147,400- A Average price= $30- B Variable cost= $6- C Break even point in units= 6,142- D
This is an example of which exit strategy?
Harvesting
Which two questions should the painter research?
How many competitors are in the area? What are the spending patterns of potential customers in the area?
Match each primary target audience with its type of business plan
Investors- executive summary Investors- oral presentation Investors- investors business plan Business owner- operational business plan
How would a perspective entrepreneur benefit from a personality self-assessment?
It can identify strengths and weaknesses in the entrepreneurs leadership style
Which part of the supply chain needs to be addressed?
Negotiated costs
Based on he estimates provided by the entrepreneur, will the bank approve her loan?
No, because her debt ratio is too high
Which action would be most likely to increase he sustainability of the business?
Offer a punch card hat awards one free grooming
What is a strategy he restaurant owner could use to achieve this goal?
Offer customers to signup for a free meal on their birthday
Match each type of intellectual property protection with the products the photographer might create
Patent-unique type of potable tripod Copyright- website gallery of stock photos Copyright- photographs of a wedding Trademark- a logo representing the photographers company brand
Which operating policy should the owner establish to possibly keep these customers and acquire their business?
Payment terms on approved credit
What will she need to obtain before adding the kennel?
Permit
Match each method of segmentation to its potential customers
Psychographic-home owners with but lifestyles that don't have time to clean Behavioral- home owners who are looking for promotions and discounts Demographic- home owners with higher incomes Geographic- home owners who live in neighborhoods
Where should she go for help?
SCORE
What should he partners measure to help track he growth of the business during he first year?
Sales
Which cruise add on should be promoted from a revenue perspective?
Shore excursions
Which variable should be used by the automotive mechanic to attract these customers?
Speed of service
What is considered a value proposition that would address the concerns of the target market?
Staff undergoes extensive background checks and driving records
What is the major reason the lender denied the loan?
The applicants credit report
What are the tax implications for his structure?
The corporation pays taxes and each of the share holders pays taxes
Which choice should the entrepreneur make based on this failure?
The entrepreneur should evaluate why the business failed and identify the strengths and weaknesses of the business.
