BT- Mock New 2

Which of the following is a characteristic of a partnership?

• Limited liability

• Shared decision-making

• Single ownership

• Profits are not shared

Which of the following is an example of a fixed cost?

• Raw materials

• Utilities

• Salaries of permanent staff

• Sales commissions

The primary purpose of a business plan is to:

• Manage day-to-day operations

• Set short-term goals

• Attract investors and lenders

• Track profits and losses

In marketing, the "4 P’s" refer to:

• Price, Product, Process, Promotion

• Price, Product, Place, Promotion

• Place, Product, Process, People

• Product, People, Profit, Process

What does the term "liquidity" refer to in business finance?

• The total amount of a company’s revenue

• The ability of a company to meet its short-term obligations

• The long-term financial health of the business

• The amount of inventory a company has

What is the main advantage of a corporation over a sole proprietorship?

• Unlimited liability

• Single ownership

• Limited liability

• Lower tax rates

Which financial statement shows the company’s financial position at a specific point in time?

• Income Statement

• Cash Flow Statement

• Balance Sheet

• Statement of Shareholder Equity

The break-even point is the level of sales at which:

• Profit equals total costs

• Revenue exceeds fixed costs

• Total assets are equal to liabilities

• Total revenue equals total expenses

Which of the following is an example of a variable cost?

• Rent

• Salaries

• Direct labor

• Insurance premiums

What does the acronym "ROI" stand for in business?

• Rate of Interest

• Return on Investment

• Return on Income

• Retail Order Item