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24 Cards in this Set
- Front
- Back
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An advantage of using family and friends
as sources of funding is |
The unlimited liability provided.
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If beginning inventory is $27,000,
merchandise purchased to replenish the stock is $18,000, and the recorded ending inventory is $16,000, what is the cost of goods sold? |
$29,000
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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? |
Sole proprietorship
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The value of a life insurance policy on the
life of the business owner is which type of asset? ( |
Other
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Which section of the business plan contains
information about the personal and nonpersonal promotion for the business? |
Organizational plan
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What is trade credit
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A form of short-term financing from
within the industry |
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A source of funding that requires money
borrowed to be paid back with interest is referred to as: |
Debt
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Professional fees paid to an accountant or
attorney for occasional work would be which type of expense |
Variable
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Entrepreneurs generally have high
expectations for themselves and strive to achieve those expectations. Thus, they are characterized as |
Inquisitive.
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Law firms and medical firms generally
choose which form of incorporation |
Limited Liability Company
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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 |
Start-up costs.
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One disadvantage of using personal savings
as a source of funding is that it: |
Provides unlimited liability.
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Product development and channels of
distribution are included in which section of the business plan? |
Operational plan
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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: |
Provider of social programs.
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The inability to interpret financial records
demonstrates a lack of: |
Competence of the entrepreneur
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Business owners must be able to get along
with their employees, make customers feel welcome, and maintain a working relationship with business associates. |
Human relations skills.
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Which is NOT an example of operating
expenses? |
Sales taxes
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Of the major factors contributing to the
success of a small business, which one is affected by the lack of working capital? |
Financing
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Expenses are BEST described as the
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Cost of goods sold.
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One advantage of using personal savings to
fund a sole proprietorship is that: |
The owner retains all the profits.
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Advertising and promotion expenses for an
ongoing business are: |
Variable costs.
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The price the retailer pays for the
merchandise sold is |
Cost of goods sold.
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Net income is calculated by subtracting
total expenses from: |
Gross profit.
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Andrea is very adept at using PowerPoint
to make presentations to potential investors in her business. She is demonstrating |
Technical skills.
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