Cfa 2

Front 1

The Cooper Company decided to sell stock
to raise capital. Under which form of
business organization does the company
operate?

Back 1

Corporation

Front 2

A line of credit is:

Back 2

A prearranged loan at an established rate
available whenever the business owner
needs it.

Front 3

Providing aid for dependent children
illustrates the government’s role as a:

Back 3

Provider of social programs.

Front 4

Under which form of business ownership
do owners have limited liability?

Back 4

Corporation

Front 5

The USDA requires that meat and poultry
plants be inspected to ensure the safety of
those food items. This illustrates the
government’s role as a

Back 5

Regulator.

Front 6

Which federal agency provides social and
economic statistics to small businesses?

Back 6

Department of Commerce

Front 7

To protect consumers, the government
must place some restrictions on private
companies. This illustrates the
government’s role as a:

Back 7

Regulator.

Front 8

Why is the amount of tax due to the
government calculated on the net income

Back 8

Net income represents the true profit of
the company.

Front 9

The value of a life insurance policy on the
life of the business owner is which type of
asset?

Back 9

Other

Front 10

A local agency which is a good resource for
agricultural businesses is the:

Back 10

County Extension Service

Front 11

Advertising and promotion expenses for an
ongoing business are:

Back 11

Variable costs

Front 12

What state agency issues permits to day
care centers?

Back 12

State Department of Agriculture
Consumer Protection Division

Front 13

Product development and channels of
distribution are included in which section
of the business plan

Back 13

Operational plan

Front 14

Which type of business can own assets and
borrow money without directly involving
the people who own it, and, therefore, is
more closely regulated by the government
than other business organizations

Back 14

Corporation

Front 15

Of the major factors contributing to the
success of a small business, which one is
affected by the lack of working capital

Back 15

Financing

Front 16

OSHA inspects factories to ensure safe
working conditions for employees. This
illustrates the government’s role as a

Back 16

Regulator.

Front 17

Each year the government spends millions
of dollars on medical research. This is an
example of the government’s role as a:

Back 17

Provider of social programs

Front 18

One disadvantage of using personal savings
as a source of funding is that it:

Back 18

Provides unlimited liability

Front 19

Which appears on the income statement?

Back 19

Net profit

Front 20

Which is NOT an example of variable
costs?

Back 20

Loan payment

Front 21

A business plan can provide an
entrepreneur with a start-up:

Back 21

Blueprint.

Front 22

Which is NOT a factor on an income
statement?

Back 22

Liabilities

Front 23

A federal agency that provides grants to
cities for loans to private developers to help
improve impoverished areas is:

Back 23

HUD

Front 24

A local manufacturer has agreed to
produce Gale’s new product. This will
relieve Gale from having to set up a
manufacturing plant. This type of
partnership is a/n:

Back 24

Strategic alliance

Front 25

Law firms and medical firms generally
choose which form of incorporation?

Back 25

Limited Liability Company

Front 26

Which state agency provides businesses
with information regarding employer
responsibilities in relation to
unemployment insurance?

Back 26

State Department of Labor

Front 27

Ability and willingness to invest personally
in a business venture satisfies the credit
requirement for:

Back 27

Capital.

Front 28

Which is a balance sheet item?

Back 28

Assets

Front 29

What is a disadvantage of using a
partnership as a source of funding

Back 29

Loss of some of the control and
ownership

Front 30

Expenses are BEST described as the

Back 30

Cost of running a business.

Front 31

The inability to interpret financial records
demonstrates a lack of:

Back 31

Competence of the entrepreneur

Front 32

Net income is calculated by subtracting
total expenses from:

Back 32

Gross profit.

Front 33

Robert purchased a case of lollipops from
his wholesale supplier for $10.92. The case
contains 7 dozen lollipops. Robert will
resell the lollipops for 25 cents each. What
is the cost of goods sold per lollipop?

Back 33

13 cents

Front 34

Business owners must be able to get along
with their employees, make customers feel
welcome, and maintain a working
relationship with business associates. These
are:

Back 34

Human relations skills.

Front 35

The price the retailer pays for the
merchandise sold is:

Back 35

Cost of goods sold.

Front 36

The proposed business organization,
including the form of business ownership, is
included in which section of the business
plan?

Back 36

Organizational plan

Front 37

Expenses that are NOT affected by sales
volume are called

Back 37

Fixed costs