Cfa 3

Front 1

A Rolex is considered an expensive watch
for the wealthy. A Timex is considered an
inexpensive watch for the thrifty.

Back 1

Sales quotas

Front 2

A manufacturing plant is forced to layoff
250 employees due to a decrease in sales
revenue. The layoffs result in a decrease in
overall consumer spending throughout the
community.

Back 2

Natural forces

Front 3

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

Back 3

Taxing gross income results in too little
revenue for the government.

Front 4

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 4

$565,000

Front 5

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

Back 5

Allows the owner to retain all of the
profit.

Front 6

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

Back 6

Marketing plan

Front 7

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

Back 7

Executive summary

Front 8

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

Back 8

Sole proprietorship

Front 9

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

Back 9

Small Business Administration

Front 10

To protect consumers, the government
must place some restrictions on private
companies.

Back 10

Provider of public goods.

Front 11

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 11

HUD.

Front 12

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

Back 12

Current

Front 13

Professional fees paid to an accountant or
attorney for occasional work would be
which type of expense?

Back 13

Accrued

Front 14

If the gross profit is $200,000 and the total
expenses are $103,300, what is the net
income/profit (before taxes)?

Back 14

$303,300

Front 15

Which is NOT a financial tool that utilizes
sales projections?

Back 15

Inventory

Front 16

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

Back 16

Product

Front 17

The percent of the total sales revenue of a
market captured by a particular
business

Back 17

Market position

Front 18

A business that targets young professional
female adults ages 21-30 is using:

Back 18

Psychographic segmentation.

Front 19

For which type product would
psychographic segmentation MOST
LIKELY be used?

Back 19

Clothing

Front 20

Which is a basis for behavioral
segmentation?

Back 20

Rate of use

Front 21

Which is a basis for psychographic
segmentation?

Back 21

Life style

Front 22

Which is a basis for demographic
segmentation

Back 22

Income