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