Cfa 2

Front 1

A Rolex is considered an expensive watch
for the wealthy. A Timex is considered an
inexpensive watch for the thrifty. These
images illustrate successful

Back 1

Product positioning.

Front 2

What is the total of expenses if salaries are
$70,000, advertising is $12,000, rent is
$14,000, utilities are $3,600, maintenance is
$1,200, insurance is $1,500, and
miscellaneous expenses are $1,000?

Back 2

$103,300

Front 3

If total revenue from sales for the year was
$375,000 and the cost of goods sold was
$190,000, how much gross profit was made
from sales for the year?

Back 3

$185,000

Front 4

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

Back 4

Net income represents the true profit of
the compan

Front 5

Net income is calculated by subtracting
total expenses from

Back 5

Gross profit.

Front 6

Which is NOT an example of operating
expenses?

Back 6

Sales taxes

Front 7

On an income statement, net sales revenue
minus cost of goods sold is:

Back 7

Gross profit

Front 8

The process of investigating facts about a
specific market that could influence the
potential success of the business is known
as:

Back 8

Market research.

Front 9

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

Back 9

HUD

Front 10

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

Back 10

Organizational plan

Front 11

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

Back 11

Department of Commerce

Front 12

In North Carolina, day care centers are
required to obtain licenses. This illustrates
the government’s role as a:

Back 12

Regulator.

Front 13

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

Back 13

Provider of social programs.

Front 14

As she prepared to open her new flower
shop, Jamesia made several trips to talk
with an accountant. The fees paid for those
consultations would be classified as:

Back 14

Start-up costs.

Front 15

A government agency that uses a
commercial bank to make loans to
businesses and then guarantees up to 90%
of the loan if the business fails is the:

Back 15

SBA.

Front 16

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

Back 16

Other

Front 17

If the gross profit on sales is $574,000 and
total expenses are $401,000, what is the net
income

Back 17

$173,000

Front 18

Which is NOT a financial tool that utilizes
sales projections?

Back 18

Balance sheet

Front 19

Latoya’s total sales for this week were
$1,239. Latoya’s manager set her quota for
this week 5% higher. How much more will
Latoya have to sell to meet her sales
quota?

Back 19

$61.95

Front 20

XYZ DECA chapter sold $5,800 worth of
candy last year. A 9% increase in sales is
projected for this year based on increased
chapter membership and new candy
varieties. XYZ DECA is projecting sales for
this year to be

Back 20

$6,322

Front 21

The decision to use air instead of rail
transportation is related to which
marketing mix element?

Back 21

Place

Front 22

Creating distribution centers to facilitate
handling and controlling inventory is a:

Back 22

Place decision.