Last Test Flash Cards

Front 1

A Rolex is considered an expensive watch
for the wealthy. A Timex is considered an
inexpensive watch for the thrifty. These
images illustrate successful:

Back 1

Product positioning.

Front 2

The Electronics World conducts extensive
training for all employees on their sales
staff. This training relates to which
component of the marketing mix?

Back 2

Promotion

Front 3

Net income is calculated by subtracting
total expenses from:

Back 3

Gross profit.

Front 4

On an income statement, net sales revenue
minus cost of goods sold is:

Back 4

Gross profit.

Front 5

What is trade credit?

Back 5

A form of short-term financing from
within the industry

Front 6

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

Back 6

Provides unlimited liability.

Front 7

A source of funding that requires money
borrowed to be paid back with interest is
referred to as:

Back 7

Debt.

Front 8

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

Back 8

Operational plan

Front 9

Law firms and medical firms generally
choose which form of incorporation?

Back 9

Limited Liability Company

Front 10

Advertising and promotion expenses for an
ongoing business are:

Back 10

Variable costs.

Front 11

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

Back 11

Provider of social programs.

Front 12

One advantage of using personal savings to
fund a sole proprietorship is that:

Back 12

The owner retains all the profits.

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

The repayment of a long-term loan is
expected to take:

Back 14

More than one year.

Front 15

Which appears on the income statement

Back 15

Net profit

Front 16

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

Back 16

Other

Front 17

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

Back 17

Variable

Front 18

Which is NOT a financial tool that utilizes
sales projections?

Back 18

Balance sheet

Front 19

al current assets for Howard’s Hotdogs
are $75,000. Total current liabilities are
$32,000. What is the current ratio of assets
to liabilities?

Back 19

2.34 of current assets for every $1 of
current liabilities

Front 20

An example of publicity is a/n:

Back 20

Radio station announcing that a company
donated food to flood victims.

Front 21

Updating products to "new and improved"
or stocking products according to market
demand represent which product/service
selection consideration?

Back 21

Monitoring existing products

Front 22

Market position is:

Back 22

The perceived standing of a business in
the minds of customers.