Equine Business Management Quiz Questions

This week we read about the concept of feminization and how it led to sweeping industry changes with regard to apparel, equipment and accessories. What does the term feminization mean? Select one: A focus on women in a field or profession traditionally dominated by men. The exclusive use of female horses in an activity. Activities which are restricted to only female riders.

A focus on women in a field or profession traditionally dominated by men.

An LLC and an S corp are similar in many ways, yet there are important differences as well. Match each characteristic to the appropriate business structure. A. Higher start up cost, state incorporation required B. Owner cannot be paid a salary C. Cash dividends or distributions are permitted D. All income is taxed at the personal rate E. Business tax returns must be filed

A. S Corp B. LLC C. S Corp D. LLC E. S Corp

What is accounting?

Accounting is responsible for interpreting, classifying, analyzing, reporting, and summarizing financial data

What does the term Market Segment mean? It is a group of consumers that: (choose all that apply) Select one or more: Have similar budgets and levels of education Respond to similar marketing messages Share common interests and needs

All

The Securities and Exchange Commission in the United States requires

All companies whose stocks are publicly traded to use the Accrual Method of Accounting

You need to have a business plan for your company if: Select one: Its just an idea right now The company has been in business a number of years without any business plan The existing company is considering a major expansion into a new product line All of the above

All of the above

What is the most important thing you need to do before a disaster strikes you? a. Clean your facility b. Prepare a disaster evacuation plan for your self, family and animals. c. Pack up your personal stuff like pictures, favorite Teddy Bear, and the urn with Grandma's ashes on the fireplace mantle.

B

What is bookkeeping?

Book keeping is responsible for the recording of financial transactions

A stakeholder is someone or any organization that: a. can be affected by your business decisions b. can have an influence on or affect your business c. Both choice 1 and 2.

C

What US government agency provides and coordinates relief assistance before, during and after a disaster event? a. The Red Cross b. My local police department c. FEMA d. SCORE

C

What does the Sales Funnel conversion rate tell us about our sales efforts? Select one: a. How much our revenue will be from the sales we make b. How many leads we need to convert to prospects c. The Sales Funnel describes the rate of converting leads into prospects and prospects into buyers. It is usually given as a percent of total leads

C

What is Risk Management? a. Emergency planning b. buying insurance c. Identifying, analyzing and minimizing risks to your business

C

Which channel of lead acquisition is most effective, meaning that it has the highest conversion rate of all the typical sales lead generators? Select one: a. Sales prospecting b. Paid Marketing c. Referrals d. Social Media

C

Which of the following entities would be subject to double taxation? Select one or more: C corporations S corporations LLC (limited liability companies)

C corporations

What are the 4 principal marketing Segments as described in the articles we read this week? Select one or more: Competition Shipping horses Working horses Racing Recreation Breeding

Competition Working Horses Racing Recreation

Identify each of the following as either direct or indirect costs. Cost of good sold Miles driven to pick up item for sale Cost of electricity used by your store 10% commission paid to sales person 401K retirement plan for all employees

Cost of good sold Direct Miles driven to pick up item for sale Indirect Cost of electricity used by your store Indirect 10% commission paid to sales person Direct 401K retirement plan for all employees Indirect

What does mutual aid mean? a. You offer to help someone else b. Someone else offers to help you c. You call the police to help you. d. Both Choices a and b.

D

Imagine that you've successfully started a tack shop, selling high end equipment to well-heeled consumers. After a year, another shop opens up in the neighboring town. While there is some overlap in products, they also offer a broader array of clothing, while you do not. What relationship does this new shop have to you? Indirect competition, because they are found in another town. Indirect competition, because they don't carry identical product lines. Direct, because their product line overlaps significantly with your own. They are not a competitor.

Direct, because their product line overlaps significantly with your own.

Which options below describes what some entrepreneurs said motivated them to start their own businesses? a. Someone motivated me. b. I got tired of working for someone else. c. I got fired or laid off from my job. d. I wanted the freedom of being my own boss. e. I wanted to make more money. f. All of the above except Choice 5.

F

A resume is constructed for potential employers only; it is of no use to yourself as author. Select one: True False

False

All company structures cause personal liability to flow through to the owners. Select one: True False

False

Even though you have to use your business cash to pay for merchandise shipments, it makes sense to always keep at least 3 months worth of inventory on hand. T/F

False

Generally speaking, if a company is a sole proprietorship, it is a perfectly acceptable practice to keep just one checking account with all the financial transactions recorded, whether the revenue or expense is business related or personal. True or False

False

If you are caring for of horses that you don't own, you have that obligation only on days that are not holidays. True or False

False

Is it true or false that all these things must be in your personal "go bag" for an emergency evacuation? Your medicines, some clothes, your favorite picture of your farm, first aid supplies, bottled water, extra set of car keys, snack food, extra cash, cell phone charger. True or False

False

Neglect is the primary reason you could be judged liable in a personal injury or personal property damage case. True or False

False

Social media tends to be trendy and unreliable. Thus, it should not be included in your evaluation of the competition. True False

False

While SCORE offers valuable tools and mentoring, their services are simply too expensive for someone that is just starting a business. Select one: True False

False

Net 30 days payment terms means the bill is due and payable 30 days from when you received the shipment from the distributor or manufacturer. True or False

False You understand that the supplier is willing to wait 30 days from when you place the order. Read this question carefully. The clock starts ticking when you place the order regardless of when you receive the shipment.

Unlike advertising, public relations activities have the advantage of being: Select one: free outdoors time consuming vegan

Free

What are the three accounting statements that are typically prepared to evaluate the financial performance of a business? Income Statement Pro Forma Budget Statement of Cash Flow Balance Sheet Marketing Plan

Income Statement Statement of Cash Flow Balance Sheet

The Cash Basis of Accounting

Is used by small companies because it is less complex than accrual accounting

If you were an established business, selling grain and other agricultural products in the equine industry, and you experienced a decrease in sales for several consecutive months, what would be your best course of action? Select one: Increase your prices Decrease your prices Keep your prices constant and do more research.

Keep your prices constant and do more research.

Which of the following is NOT one of the common P's of marketing: Select one: Product Peculiar Promotion Price

Peculiar

Which type of accounting method is generally used by small businesses? The Accrual Method The Cash Basis Method The back of a napkin method

The Cash Basis Method

What is Net Income?

Total revenues minus total expenses for any given accounting period

A considered purchase is usually fairly expensive. Select one: True False

True

A short term asset is one that the company expects to use up within one year of its purchase or acquisition T/F

True

A sole proprietorship business has no legal status separate from that of the owner. The owner and the business are legally considered one and the same in matters of taxes and personal liability. Select one: True False

True

Burn out is something you need to think about in your job or business. T/F?

True

If you are running a non-profit organization, you can still legally pay yourself a salary from the income generated by the company. Select one: True False

True

If you can only afford to pay for one type of insurance for your business, liability insurance is the most important. True or False

True

It is possible for a business to sell an item for more than they paid for it, yet still incur a loss. Select one: True False

True

Liability insurance is insurance that provides protection against claims resulting from injuries to people and damage to their property. True or False

True

Managing company personnel or external business relationships is one of the most important skills that a manager can have. Even if he/she can write a good business plan, that's not enough. True or False

True

Selling merchandise on an Internet website does not require the seller to have a "bricks and mortar" store. True or False

True

You are evacuating your horses due to a wildfire headed toward your main barn. You only have a little time. You have to choose between bringing hay or grain for the horses. You remember a professor at ABI said "always pack water, medicines and hay for the horses. Forget about the grain." True or False?

True

You may be able to find funding for starting up a new business from different sources such as your friends and family, SBA loans, or a loan from a bank offering low interest small business loans. If you borrow money, you should try to get it at as low an interest rate as possible and with longer repayment terms such as 5-10 years. T/F?

True

Which of the following attributes are included in a consumer demographic profile? Select one or more: marital status age sex magazine subscriptions income family size

all

Sufficient capital is important when starting a business; this is particularly true of liquid assets. Which of the following are considered liquid assets? Select one or more: cash company truck home of the owner money market account

cash money market account

In which step of the purchase decision process is visibility most important? Select one: problem or need recognition information search evaluating alternatives purchase decision post-purchase behavior

information search

Identify each of the following business items as either tangible or intangible. online continuing education programs for equine instructors horses for sale directions for building a storage barn riding apparel directions and guidance for starting your own equine business

online continuing education programs for equine instructors intangible horses for sale tangible directions for building a storage barn intangible riding apparel tangible directions and guidance for starting your own equine business intangible

Which step in the purchase decision process is likely to produce repeat customers and build brand loyalty? Select one: problem or need recognition information search evaluating alternatives purchase decision post-purchase behavior

post-purchase behavior

A fundamental skill in marketing is distinguishing product features from their benefits. Identify each of the items below as either a feature or benefit. saving on your electric bill discounted bus tickets automated thermostat not getting stuck in traffic, arriving home quickly all-you-can-eat buffet

saving on your electric bill benefit discounted bus tickets feature automated thermostat feature not getting stuck in traffic, arriving home quickly benefit all-you-can-eat buffet feature