Personal Finance, Mr. A

An example of intellectual property is:

• (a) a truck

• (b) a patent on an invention

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  (c) stock

• (

  (d) electronic bank accounts

A conflict of interest is:

• (a) when business partners have an honest disagreement about their next advertising campaign

• (b) when an accountant disagrees with the IRS on how much a company owes in income taxes

• (c) naturally occurring whenever there is competition between small businesses

• (d) a situation in which an individual might take an action to his/her advantage that would be to the disadvantage of a person or company that believe this individual is serving them

Corporate social responsibility:

• (a) is the legal requirement that companies make charitable donations before paying dividends

• (b) is a government program required for all companies

• (c) are voluntary steps beyond a company’s financial self-interest that reflect what business leaders believe their companies can or should accomplish

• (d) is a form that must be completed each year and filed with the Louisiana Secretary of State

A payment made to an insurance company to cover the costs of an insurance policy is called:

• (a) a policy

• (b) a dividend

• (c) a beneficiary

• (d) a premium

The profit margin on an item a company sells can best be defined as:

• (a) total debt minus annual debt payment

• (b) variable cost per unit

• c) price of the unit minus unit cost of goods sold

• (d) total company revenue minus total company costs

Total revenues minus total costs equals

• (a) contribution margin

• (b) unit breakeven

• (c) profits before owner compensation and taxes

• (d) future value profits

Revenue per unit minus cost of goods sold equals:

• (a) unit breakeven

• (b) contribution margin

• c) income pro forma

• d) debt service

A breakeven analysis can determine:

• (a) how many units the company will need to sell to pay for a new piece of equipment

• (b) the identity of future loan guarantors

• (c) when a company must pay its bills to avoid bankruptcy

• (d) how many customers a new business will need to secure to meet its revenue projections

An example of a variable cost is:

• (a) monthly rent

• (b) overhead salaries

• (c) cost of goods sold

• (d) the salary of the Finance Vice President

An example of a fixed cost is:

• (a) monthly rent

• (b) cost of goods sold

• (c) hourly labor

• (d) office supplies