Cfa2

Front 1

Business owners must be able to get along
with their employees, make customers feel
welcome, and maintain a working
relationship with business associates. These
are:

Back 1

Human relations skills.

Front 2

The price the retailer pays for the
merchandise sold is:

Back 2

Cost of goods sold.

Front 3

Why is sole proprietorship the most
common form of business ownership?

Back 3

The government assumes little control
over sole proprietorships.

Front 4

Which organization has as its purpose the
stimulation of local economic growth?

Back 4

Chamber of Commerce

Front 5

The inability to interpret financial records
demonstrates a lack of:

Back 5

Competence of the entrepreneur.

Front 6

Andrea is very adept at using PowerPoint
to make presentations to potential investors
in her business. She is demonstrating:

Back 6

Technical skills

Front 7

Which is a balance sheet item?

Back 7

Assets

Front 8

An advantage of using family and friends
as sources of funding is:

Back 8

The availability of money with little or no
restriction.

Front 9

A business owner attempts to enforce a
certain level of acceptable behavior for
those who represent the business by
creating a:

Back 9

Code of ethics

Front 10

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

Back 10

Provider of social programs.

Front 11

Businesses can demonstrate ethical
responsibility towards customers by:

Back 11

Representing the merits of products
truthfully.

Front 12

Which section of the business plan discusses
the personal qualifications of the
entrepreneur?

Back 12

Management team plan

Front 13

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 13

SBA

Front 14

Capital contributed by the owner(s) of a
business is:

Back 14

Equity.

Front 15

Anything of value that a business owns is
a/n:

Back 15

Asset

Front 16

Of the major factors contributing to the
success of a small business, which one is
affected by the lack of working capital?

Back 16

Financing

Front 17

State-sponsored venture capital funds are
provided to entrepreneurs by the state to
encourage economic development and:

Back 17

Create jobs.

Front 18

Expenses that are NOT affected by sales
volume are called:

Back 18

Fixed costs

Front 19

Money invested in a business by private
investors is:

Back 19

Equity funding

Front 20

Providing aid for dependent children
illustrates the government’s role as a:

Back 20

Provider of social programs.

Front 21

Which is NOT an example of operating
expenses?

Back 21

Sales taxes

Front 22

Which is NOT an example of variable
costs?

Back 22

Loan payment

Front 23

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?

Back 23

$29,000

Front 24

What is a disadvantage of using a
partnership as a source of funding?

Back 24

Loss of some of the control and
ownership

Front 25

Which is a major disadvantage of a
corporation?

Back 25

Double taxation

Front 26

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

Back 26

HUD

Front 27

Which section of the business plan contains
information about the personal and nonpersonal
promotion for the business?

Back 27

Marketing plan

Front 28

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

Back 28

Variable

Front 29

Which state agency provides businesses
with information regarding employer
responsibilities in relation to
unemployment insurance?

Back 29

State Department of Labor

Front 30

What is trade credit?

Back 30

A form of short-term financing from
within the industry

Front 31

Net income is calculated by subtracting
total expenses from:

Back 31

Gross profit.

Front 32

A loan that is granted to a bank’s most
creditworthy customers and is not
guaranteed by collateral is a/an:

Back 32

Unsecured loan.

Front 33

Jessica asks many questions and conducts
research when attempting to solve
problems related to her business. What
personal characteristic does this represent

Back 33

Inquisitiveness

Front 34

Expenses that do NOT remain the same
from month to month are:

Back 34

Variable costs.

Front 35

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

Back 35

$96,700

Front 36

Law firms and medical firms generally
choose which form of incorporation

Back 36

Limited Liability Company

Front 37

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

Back 37

Operational plan

Front 38

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

Back 38

Organizational plan