ABT 49 Midterm #2

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A business plan is ___________________________.

• a “living document” that should be updated regularly—at least annually.
• a collection of several documents that answer the “who, what when, where, why and how” of your business.
• supported or justified by the financial documents of the business
• should include market data for the product(s) or service(s) that your business offers
• All of the above

A _______ is a legal structure with the greatest continuity during changes in ownership?

• Sole proprietorship
• Partnership
• Corporation
• Limited Liability Company

Which company legal structure is the hardest to establish and most regulated?

• Sole proprietorship
• Partnership
• Corporation
• Limited Liability Company

Owner’s Equity is part of the _____________________.

• Personal Financial Statement
• Balance Sheet
• Income Statement
• Cashflow Statement

A _______ compares assets and liabilities—which are always equal

• Personal Financial Statement
• Balance Sheet
• Income Statement
• Cashflow Statement

Which document includes the net sales for a company or product line?

• Personal Financial Statement
• Balance Sheet
• Income Statement
• Cashflow Statement

When seeking a grant from a government agency or non-profit foundation, you should describe in detail how your proposal, if funded, will _________________

• benefit your business.
• benefit your community.
• help the granting agency meet its goals.
• help the economy

Gross profit is _______________________________.

• Gross sales (less returns and allowances) minus net sales
• Gross sales (less returns and allowances) minus COGS
• Gross sales (less returns and allowances) minus expenses
• Gross sales (less returns and allowances) minus losses
• Gross sales (less returns and allowances) minus net operating income

In business, liabilities include _______________

• debts
• legal exposure
• owners equity
• All of the above