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17 Cards in this Set

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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:
SBA.
In North Carolina, day care centers are required to obtain licenses. This illustrates the government’s role as a:
Regulator.
If the gross profit on sales is $574,000 and total expenses are $401,000, what is the net income?
$173,000
Which is a balance sheet item?
Assets
Entrepreneurs generally have high expectations for themselves and strive to achieve those expectations. Thus, they are characterized as:
Self-demanding.
Which is NOT an example of variable costs?
Loan payment
Which state agency provides businesses with information regarding employer responsibilities in relation to unemployment insurance?
State Department of Labor
On an income statement, net sales revenue minus cost of goods sold is:
Gross profit.
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?
$103,300
Which would NOT be considered a fixed expense?
Utilities
Which organization has as its purpose the stimulation of local economic growth?
Chamber of Commerce
If the gross profit is $200,000 and the total expenses are $103,300, what is the net income/profit (before taxes)?
$96,700
Why is the amount of tax due to the government calculated on the net income?
Net income represents the true profit of the company.
Each year the government spends millions of dollars on medical research. This is an example of the government’s role as a:
Provider of social programs.
The inability to interpret financial records demonstrates a lack of:
Competence of the entrepreneur.
Which is NOT an example of operating expenses?
Sales taxes
Net income is calculated by subtracting total expenses from:
Gross profit.