BUSSHART KM - BUSINESS PLAN MATH

What is an example of an initial expense?

• Rent

• Advertising

• License fees

• Insurance

What is an example of a monthly, recurring expense?

• Signage

• Lease down payment

• Utilities

• Furniture

Which type of company only spends money when absolutely necessary?

• Efficient Startup

• Thin Startup

• Lean Startup

• Low Startup

According to the guideline in the reading, when creating your business plan, how many months of expenses do you need funding for?

• One

• Two

• Six

• Twelve

What is the term used to describe the point where your revenue equals your expenses?

• Tipping point

• Satisfaction point

• Breakeven point

• Nexus point

An accurate assessment of total start-up costs will allow the business owner to create:

• Expense report

• A budget

• Neither choice above

A tool to help make a budget quicker and more accurate is:

• Calculator

• Ruler and paper

• Spreadsheet software

What is the description of each axis on a breakeven chart?

• Profit and volume

• Sales and expenses

• Direct costs and indirect costs

True or False: Net profit is greater than gross profit.

• T

• F

The rate at which a business increases revenue from sales is:

• Growth percentage

• Net profit percentage

• Gross profit rate