entrepreneurship exam

One free source of information on worker safety guidelines is

0SHA

The bank debt ration maximum is typically about what percentage

30%

A poem is in the public domain is

70 years have passed since the authors death

The trade credit term 1/10 net 15 means

A 1% discount is given for payment within first 10 days

which of the following is an example of organic growth

A business that sells more to existing

Which of the following best describes a business plan

A company's business model in written form

Which of the following is not a source or equity financing

A credit union

which of the following must be completed before the franchise agreement is signed

A franchise disclosure documentv

which is included on a purchase order

A list of the items to be purchased in their prices

A micromanager is

A manager who interferes too much in the decisions and tasks of employees

which of the following best describes productivity

A measure of business output compared to Business input

safety stock

A minimum level of inventory to prevent a stock out

and initial public offering occurs when

A privately held company still offers its stock for sale to the public

hey product with a perpetual life cycle is

A product with relative constant sale

A franchise royalty is

A regular ongoing payment based on the franchises sales

which of the following is a vendor

A wholesale business that sells merchandise to a retail store

One advantage of using an independent insurance agent is

A wider choice of policies

Checks and balances established by a business to provide employees with mandatory procedures are called

Accounting controls

If a business borrows money the effect of the accounts in its balance sheet will show an

Assets and liablities increase

The major source of debt financing is an

Bank

Starting A business by yourself, without any outside investment is called

Bootstrapping

Which of the following would not be considered a bootstrapping strategy

Borrowing money from the bank

Which of the following columns in an accounting worksheet would not be needed by a service business

COGS expenses

The first creating a bookkeeping system for a business is to create a

Chart of accounts

the scott company decided to sell stock to raise capital. Under what form of business organization does the company operate?

Corporation

The total amount spent to produce or buy the merchandise to be sold is called

Cost of goods sold

All accounting systems use

Double-entry accounting

Venture capital is typically of which type of financing

Equity financing

The part of the business plan that gives an overview of the entrie document is the

Executive summary

The independent agency that insures saving and checking accounts is the

FDIC

Costs which stay the same for a certain period of time such as rent or insurance are called

Fixed expenses

obsolescence occurs when

I didn't inventory are no longer popular with customers

The ______ is a summary of a bussiness income and expenses during a specific period, such as a month, quarter, or year

Income statement

Which one of the following is not prepared when using an accounting worksheet

Income tax return

An itemized list of goods delivered, or services rendered, and the amount due is called an

Invoice

An accounting term used to describe where all the transactions of a business are recorded is an accounting database or an accounting

Journal

Which of the following should be included in a business plans executive summary

Mission statement

Banks determine the bank ratio by using which of the following formulas

Monthly debt (divided) mothly income

Which of the following represents the most accurate picture of how a business is doing Financially

Net profit

______ is found by subtracting total expenses from gross profit

Net profit

Cost incurred by a bussiness for the day to day operation of that business is called

Operating expenses

To comepute net profit, which of the following is subtracted from gross profit?

Operating expenses

The most common reason that the ending balance on a banks checking account statement doesn't match the balance you show in your checkbook is

Outstanding checks

entrepreneurs estimate taxes so they can

Pay what they owe over the course of the year

When you pay someone with a check, this Person is the

Payee

The process of entering in data into a database or journal is called

Posting

zoning laws affect

Price Mark up

and auto dealer charges higher interest rate on Karlos two large companies and the belief that they have more money than smaller ones this could be an example of

Price discrimination

A detailed written proof of a purchase is called an

Receipt

which of the following is a planing activity

Setting goals

controlling is an ongoing process of

Setting in measuring performance standards

The one time investment of starting a bussiness is called an

Start up investment

Which of the following is e mathematical formula for payback?

Start up investment (diveded) net profit per month

A miniature you asked for employee input before making a decision is demonstrating

The Democratic leadership style

which of the following indicates good timing for business growth

The business is meeting it's customer satisfaction standards

which of the following is an advantage of franchising to the franchiseor

The franchiseor collect a fee in royalties from the franchisee

which of the following is a disadvantage of franchising to a franchisor

The franchisor may have difficulty finding a suitable franchisee

which of the following is the result of a management Buyout

The managers of the company take over ownership

how does the price of a product change as it moves along a distribution chain

The price increases to provide each business in the chain with a profit

If an owner of a business Seles a share of the business to a partner the effect on the balance sheet of the business will be that

The total of owners equity will increase

Which of the following sources of equity capital makes investments mainly to receive a high return on investment

Venture capitalists

corporations are governed by

a board of directors

the most important conclusion form the research on the background of entrepreneurs is

a can-do additude and desire to be an entrepreneur is more inportant that reserch findings

The purpose of orientation is to

acquaint a new employee with coworkers and job duties

and implied contract becomes ballad when it is

acted on

once entrepreneurs achieve their goals they began looking for new challenges because they are

action oriented

FICA taxes are paid bye

all of the above

how could a SW OT analysis be used when planning business growth

all of the above

inventory shrinkage occurs because

all of the above

production management is concerned with

all of the above

taxes pay for

all of the above

A restaurant owner offers to pay employees by giving them free meals but eating a meal and employee enters into

and implied contract

market penetration is

and intensive growth strategy

and owner may choose to fund an employee stock ownership plan

as part of an exit strategy

The goal of government regulation is to

balance the rights of different groups in society

obtaining debit capital to grow a business can also be described as

borrowing money

using the image of Donald Duck to sell raincoats of been example of

brand licensing

liability insurance provides protection when

businesses action or lack of action injure someone

entrepreneurial characteristics are habits that

can be strengthened

Accreditation is

certification by a professional group that a person possesses a certain skill or level of expertise

what are the three C's

character capability and capital

A lease is a type of

contract

Setting performance standards is closely associated with which management function

controlling

One of the primary goals one exiting a business is to

convert the business to cash

which form of business ownership generates 90% of the U.S sales

corporation

what category of expenses includes the money businesses spend to buy raw materials from which they make products to sell

cost of goods

lawful taxe deductions for entrepreneurs include

cost of goods sold

The importance of courtesy is most likely explained in a

customer service policy

motivation is associated with which management function

directing

good interpersonal skills are most important to a manager who is

directing employees

The most important question to ask when deciding whether to promoting employee is

does the employee have potential as a leader and manager

which of the following is a disadvantage or corporations

dual taxation

Enterprise zones are created to

encourage business development

many entrepreneurs were Influcened early in life by

entrepreneurial role models

ABC specialty wear is the only company that has written permission to use a national footballs team logo on its sportswear. This is an ex ample of a

exclusive licensing agreement

choose the best example of green procurement

find goods that are environmentally friendly

integrative growth strategy is best described as

find other companies in the same Industry

A payroll clerk who makes out employee payment by accessing the business is computer from home demonstrates

flexible work arrangements

A quantity discount is a discount

for buying a large amount of an item

A cash budget includes

foreshadowing an actual cash inflows and outflows

the seller of a franchise is called an

franchisor

one who set objectives that they plan to achieve are said to be

goal-oreientated

consumption taxes are paid on

goods and services sold

the money left over after cost of goods is subtracted from total income is called ______ profit

gross

A receiving department is responsible for

handling incoming goods

A positive workplace climate is associated with

happy employees

One possible argument against dismissing a particular employee is that he or she

has skills that could be useful in another position in the company

if fast food restaurant that begin selling toys is following which growth strategy

horizontal diversufucation

entrepreneurs who want to make their own decisions and not rely on others are

independent

when one wants to know as much as possible about whatever affects their venture, and conduct reserch and solve problems they are said to be

inquisitive

The stages of a production light cycle are

introduction growth maturity and decline

in application to register the face tasty corn as a trademark for a seller or canned corn would be rejected because that phrase

is not original

why stockout bad for business

it disappoints customer

The purpose of maintenance is to

keep equipment in good working order

A creditor is best defined as someone who

lends money

Lois and Lora plan to open a women boutique. Lois is unable to devote full time to the daily operations of the boutique but wishes to provide finical support. which form of business partnership is most likely to appeal to Lois?

limited

to be effective a performance-based reward should be

linked to specific achievable goal

subsidies are used to

make services more affordable

A company that begins advertising is existing products in another state is practicing

market development

The most important quality in an insurance package is that it

meets the policyholders needs

what are the owners or an LLC called

members

which of the following describes a typical distribution chain for a shirt

menu facture to wholesaler to retailer to customer

an employee is most likely to be an asset to the business if he or she is

more skilled at certain task than the employer

Olivia sells Mary Kay cosmetics and earns commissions on the cosmetic sold by representatives three levels below her. This is an ex ample of

muliti level marketing

information technology is it practical concern of business growth because a growing business

needs more computers for Record keeping

A condition that will help earn a patent is

non-obviousness

if they go but a visitor at a petting zoo does use owner would be covered by

none of the above

the American red cross is an ex ample of a ________ corporation

nonprofit

changes in the technology have lead more entrepreneurs to use

nontraditional flexible organization

which of the following options might be selected to improve cash flow

offer discounts to customers who pay with cash

what type of corporation sells millions of shares in stock

open

which plan includes day today activities

operational plan

A physical inventory count is

performed by people during a visual inventory

the characteristic that accounts for an entrepreneurs tendency to stick to a task until it is complete is

persistence

McDonalds is operating within a Walmart is an ex ample of a

piggyback franchise

A business owner is most likely to hire an outside professional to

prepare the firm's taxes once a year

in order to determine where you want you're company to be in sales and growth after one year of operation and five years of operation you would use you you're...

probelm solving and decision making skills

the type of franchise that is often called a dealership (like crest Cadillac) is

product trade name

what is earned from conducting business after all the cost and expenses have been paid

profit

A warranty is a

promise that a product or service meet certain standards

ergonomics reduceces risk by

promoting health

A perpetual inventory system

provide a running total of inventory level and Value

and operation manager delegates when he or she

put in employee in charge of an operation

Illegal run oraganizations that emphasize the collection of high fees from potential distributors are often referred to as

pyramid schemes

A method for reducing expenses is

renting equipment instead of buying it

goodwill is a business valuation term that refers to

reputation employee knowledge and relationships with customers

entrepreneurs who do not pass the buck and accept the consequence for their own actions are said to be

responsible

the recruiting process includes

resumes and interviews

requiring food-service workers to wash their hands before serving meals as a form of

risk reduction

entrepreneurs who are willing to take chances on winning or losing but are not reckless are

risk-taking

when franchisees pay their parent company a percentage of their profits they are paying ______ fees.

royalty

A PERT chart is used for

showing which tasks must be completed before others can be started

a business owner who wants to maintain complete control of all business activities might consider structuring the bussiness as a

sole proprietorship

what is a vision in a business

the future you desire to create

The book value of the business is equal to

total assets minus total liabilities on the companys balance sheet

A cash discount given to a business for paying a bill early is an example of

trade credit

OSHA regulations require a business owner to

train employees to use equipment properly

a ________ is a set of characteristics or qualities that identifies a type of category or a person

traits

to avoid fines from the EPA a business owner should

use green business practices when possible

which of the following is an exchange of an operating expense for a business

utilities

and employees compensation includes

wages or salaries and benefits

The rule of 72 tells

when your money doubles at a given return rate

telecommuting is

working from outside the place of business linked by the telecommunication technology

disadvantage of being in bussiness by yourslef

you have to make all of the decisions