ENTREPRENEURSHIP LONG TEST

Aside from basic requirements to start, there are also other steps to follow before operating a business. Which of the following Is not included?

• Advertise the business

• Secure insurance of the business

• Set up an accounting system                      

• File BIR registration

Which of the following is NOT TRUE about liquidity ratio?

• The ability to convert assets into cash quickly and cheaply                                                    

• Use to work out if a company can repay creditors from the total cash, they have available

• The higher the ratio is for that company, the more liquid their assets are and the more able they'll be to pay off short-term debts

• Inventory and Debtors are not included while calculating this ratio because there is no guarantee of their realization

The following are the statements that best explain the statement of cash flow. Which does not belong?

• Net Cash Flow = Operating Cash Flow + Cash Flow from Financial Activities (Net) + Cash Flow from Investing Activities (Net) 

• If Company A had P150,000 cash inflow, P100,000 cash outflow so

  Net cash flow would be 50,000

• It’s a key indicator of a company’s financial health

• Purchase/Sale of Property and Equipment (P50,000) + Purchase/Sale of Other Businesses (P75,000) + Purchase/Sale of Marketable Securities (P25,000) = Cash Flow from Investing Activities

  (P100,000)

It is a necessary to calculate the ________ amount of each ingredient that will be needed to formulate a batch of products.

• Equipment required

• Packaging

• Production planning

• Raw materials and ingredients

Some creditors and investors use this ratio to measure how effectively their company convert sales into income.

• Efficiency ratio

• Liquidity ratio

• Profitability ratio

• None of the above

Mr. Manalo needs to register himself as an employer and for remitting his employee's contributions together with his employer's share.

• BIR registration

• DTI registration

• Mayor's business permit

• SSS and Phil health

Develops the habit of thinking continually about how the products are positioned in the hearts and minds of customer.

• Packaging

• Place

• Positioning

• Product

Each task should be paired with an appropriate time frame for completion.

• Objective

• Progress

• Task

• Time allocation

Is an essential written document that provides a description and overview of your company's future.

• Business plan

• Feasibility study

• Marketing plan

• Strategic Plan

Which of the following is helpful in deciding the technical requirements of the business?

• The cost of the raw materials satisfactory

• Suitable packaging materials available and affordable

• Distribution procedures to retailers or other sellers are established

• All of the above