Entrepreneurship Final Exam
A royalty fee is a ( n ) Select one: a. Single fee paid when a franchise agreement expires b. Ongoing payment based on a percentage of sales c. Single fee paid when the franchise agreement is signed d. Ongoing payment based on the value of the business
B
All ideas are good business opportunities Select one: a. True b. False
B
All motivational techniques are expensive. Select one: a. True b. False
B
An entrepreneur should prepare a cash flow statement Select one: a. Daily b. Monthly c. Quarterly d. Yearly
B
Angels and venture capitalists are not interested in making a profit. Select one: a. True b. False
B
Borrowing money to start up a business is called equity financing. Select one: a. True b. False
B
Building rapport with customers is bad for business. Select one: True False
B
By definition, an entrepreneur Select one: a. earns less than an employee. b. risks more than an employee. c. works in a larger company than an employee. d. has fewer benefits than an employee.
B
By donating much of his fortune to building libraries, the American industrialist Andrew Carnegie demonstrated his belief in Select one: a. Sponsorship b. Philanthropy c. Sustainability d. Ethical sourcing
B
Cash reserves is money that you spend on start-up equipment. Select one: a. True b. False
B
Consumers buy more of a product when: Select one: a. The price is high b. The price is low c. The supply is low d. All of the Above
B
Consumption taxes are paid on Select one: a. Business property b. Goods and services sold c. Imported goods d. Employees' wages
B
Corporate social responsibility is only practiced by large companies. Select one: a. True b. False
B
Deductions increase the amount of tax you must pay. Select one: a. True b. False
B
Entrepreneurs should prepare income statements Select one: a. Daily b. Monthly c. Quarterly d. Yearly
B
Entrepreneurs should use competing suppliers as bargaining chips to lower prices. Select one: a. True b. False
B
Every sales lead turns into a prospect. Select one: True False
B
Fair-trade sales have fallen in the last decade. Select one: a. True b. False
B
Fixed expenses increase when the number of products sold increases. Select one: a. True b. False
B
GoDaddy is an example of a website that will help you register a domain name. Select one: a. False b. True
B
Greenwashing is an ethical practice. Select one: a. True b. False
B
Greenwashing is unethical because it Select one: a. Infringes on copyright b. Misleads consumers c. Creates conflict of interest d. All of the above
B
If your rent goes up then the rent is no longer a fixed expense. Select one: a. True b. False
B
One advantage of using an independent insurance agent is Select one: a. Lower premiums b. A wider choice of policies c. Superior credentials d. Familiarity with the company the agent represents
B
One disadvantage of being a B2B company is that companies tend to have smaller budgets to work with than most individuals. Select one: a. True b. False
B
Property tax rates are set by the federal government. Select one: a. True b. False
B
SBICs and MSBICs often charge higher interest rates than banks. Select one: a. True b. False
B
Salespeople often make a sale to their first contact. Select one: True False
B
Successful salespeople interrupt their customers a lot. Select one: True False
B
The amount owed by a business to its suppliers for credit purchases is called Select one: a. Accounts receivable b. Accounts payable c. Merchandise payable d. Purchases on account
B
The federal government charges a sales tax on all purchases. Select one: a. True b. False
B
The most important quality in an insurance package is that it Select one: a. Is inexpensive b. Meets the needs of the policy holder c. Is sold by an exclusive agent d. Covers catastrophic risk
B
The one-time investment of starting a business is called Select one: a. Financing b. Start-up investment c. Venture capital d. Working capital
B
The only purpose of training is to improve employee skills. Select one: a. True b. False
B
The percentage of a target market population that is buying a particular product or service from your business is called Select one: a. Mind share b. Market share c. Market size d. Markup percentage
B
The type of economy in which the government controls the production, allocation, and prices of goods and services. Select one: a. Mixed economy b. Command economy c. Market Economy d. Federalist economy
B
This is a fee, similar to a tax, that importers must pay on the goods they import. Select one: a. Quota b. Tariff c. Rate d. Trade fee
B
This is where the supply curve and the demand curve intersect. Select one: a. Demand point b. Equilibrium point c. None of the above d. Supply point
B
This section of the Employee Policies and Procedures Manual details when pay is distributed. Select one: a. Privacy b. Payday c. Professional Conduct d. Dress Code Feedback
B
This section of the Employee Policies and Procedures Manual explains that the employer does not unlawfully discriminate against employees or applicants for employment on the basis of an individual's race, color, religion, creed, sex, national origin, age, disability, marital status, veteran status, or any other status protected by applicable law. Select one: a. Privacy b. Equal Opportunity Employment c. Professional Conduct d. Company Property
B
This section of the Employee Policies and Procedures Manual outlines the business' rules with respect to drugs and alcohol. Select one: a. At-will employment b. Drug Free / Alcohol Free c. Equal Opportunity Employer d. Non-Harrasment
B
This type of insurance covers losses to employees due to job-related injury or illness. Select one: a. Liability Insurance b. Workers' Compensation Insurance c. Property Insurance d. Car Insurance
B
Trade barriers make it easier for entrepreneurs to import and export. Select one: a. True b. False
B
Using credit cards for your start-up investment is always a good idea. Select one: a. True b. False
B
Venture capital is typically a source of which type of financing? Select one: a. Debt financing b. Equity financing c. Bootstrapping d. Government-sponsored financing
B
Volume discount means you pay less per item when you buy fewer items. Select one: a. True b. False
B
What are the 5 P's of marketing? Select one: a. Product, Price, Place, Profit, People b. Product, Price, Place, Promotion, People c. Product, Practice, Place, Profit, People d. Product, Price, Place, Promotion, Profit
B
What does each "B" stand for in B2B? Select one: a. Bargain b. Business c. Back d. Borrow
B
When choosing this type of business creation, you may need a business broker. Select one: a. Starting a new business b. Buying an independent business c. Buying a franchise d. Becoming an inventor
B
Which of the following is not a current liability? Select one: a. Accounts payable b. Mortgage c. Bank loan d. Collected state sales taxes
B
Which of the following is not a form of media advertising? Select one: a. Outdoor billboard b. Press release c. Web banner d. Catalog
B
Which of the following is not an example of data that would be included in a B2C customer profile? Select one: a. Geographic location of customer b. Number of employees c. Age of customer d. Education level of customer
B
Which of the following is not considered an intermediary? Select one: a. Agent b. Manufacturer c. Retailer d. Distributor
B
Which of the following is true about sole proprietorships? Select one: a. Sole proprietorships are owned by stockholders b. Sole Proprietorships are the easiest type of business ownership to set up c. Sole proprietorships sell stock to raise funds d. Sole proprietorships have limited liability
B
Which of these forms of business creation is the least risky? Select one: a. Starting a new business b. Buying a franchise c. Becoming an inventor d. None of the above
B
Who is the intended audience for the oral presentation type of business plan? Select one: a. Potential employees b. Potential investors c. Newspaper reports
B
Which of the following is true about a business plan? Select one: a. Developing it is a simple and straightforward. b. Once developed, it doesn't change. c. It has a set format. d. It will need to be changed from time to time.
D
Which of the following types of business plans is meant to use within the business only? Select one: a. Brief summary b. Oral presentation c. Investor's business plan d. Operational business plan
D
Which section of the Employee Policies and Procedures Manual explains that equipment, vehicles, telephones, computers, and and software that belongs to the company are not for private use. Select one: a. Privacy b. Payday c. Professional Conduct d. Company Property
D
You can recognize potential business ideas from which of the following sources? Select one: a. New discoveries b. Problems that need solving c. Changes in laws d. All of the above
D
You can tell you are dealing with a secure website if Select one: a. https:// is displayed in the address bar b. a closed padlock is displayed at the bottom of your screen c. an unbroken key is displayed d. All of the above
D
What qualities should businesses put into practice to have a responsible relationship with their customers? Select one: a. Honesty b. Respect c. Accessibility d. Attention e. All of the above
E
Which of the following is true about American entrepreneurs? Select one: a. They are all ages. b. They work hard. c. Many work from home. d. All of these are true.
D
Which element of the marketing mix includes a detailed customer profile Select one: a. Product b. Price c. Place d. Promotion e. People
E
Select one: a. .com b. .biz c. .net d. .us
A
Visual merchandising refers to Select one: a. how products appear in Internet advertising b. products shown in an infomercial c. how products are displayed in a store
C
When there are not enough to meet the demand, the result is a ( n ) _____ of those goods and services. Select one: a. Decrease b. Elasticity c. Scarcity d. Increase
C
Which element of the marketing mix details the selling and delivery methods of your business. Select one: a. Product b. Price c. Place d. Promotion e. People
C
Which of the following is generally NOT a personal characteristic of a successful entrepreneur? Select one: a. Courage b. Creativity c. Cautiousness d. Curiosity
C
Put the main steps in the selling process in order from the first step to the last. Preparing for a sales call Making the sales call Finding and qualifying the sales lead Closing a sale and following up
2,3,1,4
A "green" company Select one: a. aims at protecting the environment b. earns a lot money c. is also called a dot-com company d. is always located in a corporate office park
A
A brief summary of a business plan should take no more than Select one: a. 30 seconds to 3 minutes b. 3 to 5 minutes c. 5 to 10 minutes d. 10 to 15 minutes
A
A business owner with unlimited liability Select one: a. Could have to sacrifice personal money and possessions to pay business debt b. Is not personally responsible for the debts of the business c. Is a shareholder of a corporation d. Would not have to sacrifice personal money and possessions to pay business debt
A
A cost of goods sold section is included in a Select one: a. Merchandising business income statement b. Service business income statement c. Cash flow statement d. Balance sheet
A
A local economy is best described as Select one: a. The flow of goods and services within a community b. The flow of goods and services in international trade c. An economic system based on foreign exchange rates d. An economic system dominated by non-profit organizations
A
A salesperson is more likely to sell to a prospect than to a sales lead. Select one: True False
A
A small, non-manufacturing business is defined as having fewer than how many employees? Select one: a. 100 b. 50 c. 10 d. 20
A
An RFP is issued by a business interested in buying something. Select one: True False
A
An employer matches the FICA payments of his or her employees. Select one: a. True b. False
A
Bootstrapping is typically the most desirable way to start a business. Select one: a. True b. False
A
Burger King is a direct competitor to Select one: a. McDonalds b. Taco Bell c. Any fast food restaurant
A
Businesses can sell to consumers or other businesses. Select one: a. True b. False
A
Cold calling is trying to sell something to people you do not know. Select one: True False
A
Credit unions and banks may require someone to co-sign a loan for you. Select one: a. True b. False
A
Debt financing means you borrow money that has to be paid back. Select one: a. True b. False
A
Employee-paid payroll taxes are withheld from each paycheck. Select one: a. True b. False
A
Employees usually value flexibility in their work schedules. Select one: a. True b. False
A
Entrepreneurs estimate taxes so they can Select one: a. Pay what they owe over the course of the year b. Reduce their overall tax liability c. Avoid paying taxes on dividends d. All of the above
A
Entrepreneurs should calculate what their start-up expenditures will be. Select one: a. True b. False
A
Entrepreneurs should show respect to their investors and creditors. Select one: a. True b. False
A
Every sale has related expenses. Select one: a. True b. False
A
Global trade provides opportunities for entrepreneurs. Select one: a. True b. False
A
If the Subway restaurant in your town's direct competitor is a sandwich shop in the next town over, what would you consider Subway's competitive advantage? (if their target market was the people in your town) Select one: a. Location b. Price c. Selection d. Service
A
In section 3.1, "Professional Conduct", which of the following is addressed? Select one: a. Employees should be respectful, courteous, and mindful of others' feelings. b. Employees are allowed a certain number of breaks throughout the day. c. Some employees are able to earn overtime d. Employees will participate in a review process at various times during the year.
A
It may be necessary to fire an unproductive or troublesome employee. Select one: a. True b. False
A
Lawful tax deductions for entrepreneurs include Select one: a. Cost of goods sold b. Your personal car c. A spouse's retirement fund
A
Liability insurance provides protection when Select one: a. A business's action or lack of action insures someone b. A business's vehicles are damaged c. Electronic data or software is lost due to a computer malfunction d. A business has a fire or damage from the weather
A
More than 50% of people in America have purchased a product online. Select one: a. True b. False
A
One benefit of being a B2B company is that businesses tend to be more consistent in their buying habits than consumers. Select one: a. True b. False
A
Owner's equity is calculated by Select one: a. subtracting total liabilities from total assets b. Dividing total liabilities by total assets c. Subtracting total assets from total liabilities d. Dividing total assets by total liabilities
A
Personal selling is a good way to deal with customer objections. Select one: True False
A
Providing a safe workplace is a legal and ethical responsibility. Select one: a. True b. False
A
Recycling helps a business be more energy-efficient. Select one: a. True b. False
A
Sales commissions and packaging expenses are variable expenses. Select one: a. True b. False
A
Salvage value is what an item sells for at the end of its business life. Select one: a. True b. False
A
Scenario: After a series of bad years, "Radgear Helmets", an entity that sold protective gear like helmets and other types of pads for extreme sports, went out of business. There were thousands of investors in Radgear, and all of them lost the money that they invested in the company. On a positive note, that is all that the share holders lost when Radgear went out of business. Question: This scenario represents one of the advantages of which type of business ownership? Select one: a. A corporation b. A sole proprietorship c. A partnership d. A non-profit
A
Scenario: Dakei and Scott have been best friends for years and always wanted to run a business together. They finally started their business together. Everything went well for the first few and these two split profits mostly 50/50. Unfortunately, their business had a string of bad years and Scott was unable to cover his share of the loan that they took out. Because of this, Dakei found himself having to cover not only his share of the debt but also Scott's. Question: This scenario represents a disadvantage of which type of business ownership? Select one: a. Sole proprietorship b. A corporation c. A limited liability corporation d. A partnership
A
Scenario: Karin is the owner of a landscaping company. While working, a rock just went through a customer's window and she has to pay for it out of her own, personal finances because she has unlimited liability. Question: This scenario is most likely faced by owners of which type of business? Select one: a. Sole proprietorship b. Partnership c. An LLC (limited liability corporation) d. A non-profit
A
Suppliers often _______ when demand is high. Select one: a. Charge higher prices b. Charge lower prices c. Cut back on employment d. Go out of business
A
Sustainable design considers the long-term impacts of a product Select one: a. True b. False
A
Sustainable design considers the long-term impacts of a product. Select one: a. True b. False
A
Taxes buy government services. Select one: a. True b. False
A
Taxes fund public schools, city buses, and law enforcement. Select one: a. True b. False
A
The Internet makes it easier to participate in international trade. Select one: a. True b. False
A
The _____ system is the best economic system for entrepreneurs: Select one: a. Free enterprise b. Command c. Communist d. Socialist
A
The main difference between B2B and B2C is that B2B sells to other businesses while B2C sells to consumers. Select one: a. True b. False
A
The monthly cost of internet access is an example of a fixed expense. Select one: a. True b. False
A
The most common source of equity financing is giving a percentage of the ownership of a business to a partner. Select one: a. True b. False
A
The profit motive typically encourages entrepreneurs to start businesses. Select one: a. True b. False
A
The start-up investment should be more than the start-up expenditures. Select one: a. True b. False
A
The system in which prices are responsive to consumer demand, individual freedom, and voluntary exchange. Select one: a. Free enterprise System b. Command System c. Socialist System d. Federalist System
A
The type of business that provides the greatest amount of entrepreneurial freedom is a(n) Select one: a. Business you start from scratch b. Independent business you purchase c. Franchise d. Family business
A
What does the "C" stand for in B2C? Select one: a. Consumer b. Company c. Currency d. None of the above
A
Which element of the marketing mix includes a description of the product(s) or service(s) your company plans to offer? Select one: a. Product b. Price c. Place d. Promotion e. People
A
Which of the following is not a one-on-one effort for promoting a product? Select one: a. Infomercial b. Personal selling c. Telemarketing d. Direct mail
A
Which of the following is not one of the six key elements in a promotional mix? Select one: a. Networking b. Advertising c. Publicity d. Personal selling
A
Which of the following would not be considered a bootstrapping strategy Select one: a. Borrowing money from a bank b. Using personal savings c. Using credit cards d. Getting by without any start-up costs at all
A
Which type of business ownership provides limited liability for the owners? Select one: a. Corporation b. Sole proprietorship c. General partnership d. All of the above
A
Your business should have insurance coverage before it even opens. Select one: a. True b. False
A
his type of equity financing is partially financed through guaranteed loans from the government. Select one: a. Small Business Investment Companies b. Minority Enterprise Small Business Investment Companies c. Micro-Loans d. Credit Unions
A
A balance sheet includes Select one: a. Assets b. Liabilities c. All of the above
C
A carbon footprint measures Select one: a. Your sustainable energy b. The amount of carbon in the environment c. The amount of carbon you use d. The amount of carbon offsets you have purchased
C
A cover letter sent with a press release is called a Select one: a. Feature letter b. Promo letter c. Pitch letter d. Direct mail letter
C
A premium is Select one: a. A level of radio and TV advertising b. A fee paid for product placement c. A free gift with a company name printed on it
C
A statement that includes a column showing the changes in percentages from the first period to the ending period is called a Select one: a. Balance sheet b. Comparative balance sheet c. Same-size balance sheet analysis d. Competitive balance sheet
C
Adding E-Commerce to your website allows you to Select one: a. Display more diverse items on your site b. Market better on social networks c. Sell products or services on your website d. Show up at the top of search engine results
C
Companies that sell to other companies are called Select one: a. C2C b. B2C c. B2B d. None of the above
C
Competitive Intelligence refers to Select one: a. The knowledge base of a competitive business owner b. The experience of a competitive company c. The data collected about competitive businesses d. The ability to think analytically about a business
C
Data from chapter 11 (pg. 297) of online textbook. Ann's T-Shirts Income Statement Month Ended March 31,20_ _ Revenue Dollar Amount Gross Sales $7,500 Sales Returns $30 Net Sales $7,470 Cost of Goods Manufactured and Sold Materials Dollar Amount T-Shirts $1,494 Inks/Pains 249 Total Materials - $1,743 Labor - $2,490 Cost of Goods Manufactured and Sold - $4,233 Gross Profit - $3,237 Operating Expenses Dollar Amount Advertising $100 Insurance $200 Interest $300 Rent $400 Salaries $400 Telephone $200 Total Expenses - $1,600 Pre-Tax Profit - $1,637 Taxes (15%) - 246 Net Profit - $1,391 Take a look at Ann's T-Shirts Income Statement for March. Based on this Income statement, how much did Ann's T-Shirts make in March? Select one: a. $1,600 b. $1,743 c. $1,391 d. $1,637
C
In an income statement, subtracting the cost of goods sold from the net sales provides the Select one: a. Revenue b. Net operating income c. Gross profit d. Net income
C
Most businesses in the United States are Select one: a. Corporations b. Partnerships c. Sole proprietorships d. Cooperatives
C
Tasty Treats Ice Creamery donates $0.25 from the sale of each ice cream to the local homeless shelter. This is an example of Select one: a. Sustainable design b. Fair trade c. Purchase-triggered donation d. philanthropy
C
The cash flow equation is Select one: a. Cash Outflow - Cash Inflow = Net Profit b. Cash Outflow - Cash Inflow = Gross Profit c. Cash Inflow - Cash Outflow = Net Cash d. Cash Inflow - Cash Outflow = Net Profit
C
The type of distribution that gives a retailer the sole right to sell a product is called Select one: a. Intensive b. Selective c. Exclusive d. Restrictive
C
This is a type of small loan that is ideal for start-up companies because it doesn't require much capital or an extensive credit history. Select one: a. Small Business Investment Companies b. Minority Enterprise Small Business Investment Companies c. Micro-Loans d. Credit Unions
C
This is a way to buy a business in the name of another company and sell that company's products or services in a particular location for a specified length of time. Select one: a. Starting a new business b. Buying an independent business c. Buying a franchise d. Becoming an inventor
C
This is the value of one currency unit in relation to another. Select one: a. Quota b. Tarriff c. Foreign Exchange Rate d. Trade Fee
C
This section of the Employee Policies and Procedures Manual details the expectation of employees' personal appearance and hygiene. Select one: a. At-will Employment b. Non-Harrassment c. Dress Code d. Work Performance
C
This type of insurance protects a business's possessions in the event of fire, theft, or damage from the weather. Select one: a. Liability Insurance b. Workers' Compensation Insurance c. Property Insurance d. Car Insurance
C
Which of the following is the least effective price strategy? Select one: a. Charge a slightly higher price than the competition when your product has more benefits. b. Set a high price when introducing a new, unique product into the market. c. After market share is gained, lower prices to improve profits. d. Lower prices to increase sales volume.
C
Which of the following statements about corporations is true? Select one: a. Corporations are easier to set up than sole proprietorships b. A limited partnership is a type of corporation c. Corporations sells stock to raise money d. A cooperative is a type of corporation
C
Who is the intended audience for the oral presentation type of business plan? Select one: a. Potential employees b. Potential investors c. Newspaper reports
C
A patent Select one: a. Is issued by the U.S. government b. Provides a legal means for protecting an invention c. Involves research to avoid duplication d. All of the above
D
An entrepreneur Select one: a. must employ more than five employees. b. works for someone else. c. must take college level courses. d. is responsible for his or her business success.
D
Combining the price of several different items into one price is called Select one: a. A package b. A flat rate c. A unit rate d. Bundling
D
Entrepreneurs can benefit their local economies by Select one: a. Opening an account at a local bank, credit union, or other financial institution b. Paying local taxes that benefit schools and other public services c. Supplying goods and services to local consumers d. All of the above
D
FICA taxes are paid by Select one: a. Sole proprietors b. Corporations c. Employees d. All of the above
D
If a goat bites a visitor at a petting zoo, the owner would be covered by Select one: a. Workers' compensation b. Property insurance c. Renter's insurance d. None of the above
D
Marketing plan goals should Select one: a. Have a time frame b. Be measurable c. Be action-oriented d. All of the above
D
One advantage of a corporation as compared to a sole proprietorship is Select one: a. A corporation is easier to set up and requires less paperwork b. A corporation provides limited liability for its owners c. A corporation has fewer shareholders d. A corporation has a partnership agreement
D
One advantage of a general partnership over a sole proprietorship is a general partnership Select one: a. Provides limited liability b. Is a corporation c. Provides unlimited liability d. Can rely on more than one person for financial backing
D
Starting a business by yourself, without any outside investment, is called Select one: a. Start-up investment b. Payback c. Capital control d. Bootstrapping
D
Taxes pay for Select one: a. Roads b. The National Guard c. Unemployment Insurance d. All of the Above
D
The major source of debt financing is a(n) Select one: a. Credit union b. Angel c. Customer d. Bank
D
The rate at which the business needs to spend cash to cover overhead costs before beginning to generate a positive cash flow is called the Select one: a. Start-up rate b. Overhead rate c. Cash flow rate d. Burn rate
D
To determine your competitive advantage, which of the following would you want to know? Select one: a. What products your competitor carries b. The type of customer service your competitor offers c. What your competitor charges for the products d. All of the above
D
What is not an example of data that would be included in B2B customer profile? Select one: a. Company size b. Type of industry c. Geographical location d. Gender
D
When choosing this type of business creation, you will likely create a prototype. Select one: a. Starting a new business b. Buying an independent business c. Buying a franchise d. Becoming an inventor
D
Which element of the marketing mix describes the process you will use to make potential customers aware of your product or service and to influence them to buy? Select one: a. Product b. Price c. Place d. Promotion e. People
D
Which of the following challenges poses a business risk to entrepreneurs who want to conduct international trade? Select one: a. Tariffs that must be paid to import goods b. Cultural differences between nations c. Trade barriers d. All of the above
D
Which of the following is NOT a risk of being an entrepreneur? Select one: a. losing time with family b. making a bad business decision c. not making much money d. getting fired
D
Which of the following is not a long-term asset? Select one: a. Building b. Equipment c. Machinery d. Accounts receivable
D
Which of the following is not a potential differentiator? Select one: a. Selling method b. Mix of products c. Unique service d. Carrying capacity
D
Which of the following is not considered a product "feature"? Select one: a. Quiet b. Colorful c. Soft d. Fun
D
Jake opened a mobile car washing business. He travels around to the largest employers in Greenville County. On Monday, he goes to the Hospital... on Tuesday, the BMW Plant... on Wednesday, he visits Michelin, etc. He has regular customers that know he will be there that day to wash their car, and he has an automatic payment plan set up that will draft money out of their account to pay for his service. He has gotten so busy that he hired 3 full time employees that travel with him and work 40 hours per week (this is not hourly labor). He also has two employees that he calls just when he gets busy and he pays them by the hour, just for the hours that they work. He has insurance through Nationwide that will cover him just in case he dents or scratches a customer's car. Questions: Look at the list of some of his expenses below and determine if they are fixed or variable costs. Car soap Rainex Insurance Employee salary Business cards Facebook ad Wax Answer Armor All cleaner Leather interior cleaner Depreciation on tools
Variable Variable Fixed Fixed Fixed Fixed Variable Variable Variable Fixed
Directions: Please read the following scenario and then answer the questions that follow: Caitlyn sells monogrammed tumbler cups. They come in various colors and she packages them in a white box with a sticker that has her logo on it. She sells them mostly from her website. Her cups have gotten so popular that she has recently leased a warehouse on Main St. that holds her inventory. Most of her customers are from out of state, so she has to ship almost every order. Questions: Look at the list of some of her expenses below and determine if they are fixed or variable costs. Tumbler cups Shipping boxes Monograms for cups Stickers for the packaging Rent on her warehouse Shipping fees Website hosting fee White boxes for packaging Instagram advertising Magazine ad Phone bill Computer depreciation
Variable Variable Variable Variable Fixed Variable Fixed Variable Fixed Fixed Fixed Fixed