Final Exam - Spring 2025

Luis runs a small catering business and often struggles to cover payroll, even though sales are steady. What financial issue is Luis most likely facing?

• High profit margins

• Insufficient cash flow

• Too many suppliers

• Low customer demand

Which of the following would be considered a fixed cost in a business?

• Packaging per unit

• Rent for office space

• Sales commission

• Credit card fees

Jasmine sells custom candles for $25 each. Her materials and labor cost 15 per candle. What is her gross profit per unit?

• $5

• $10

• $15

• $20

What is another term for an Income Statement?

• Capital expenditure sheet

• Budget summary

• Profit & Loss Statement

• Operating sheet

A new startup spends $5,000 on logo design and legal registration before launch. These are examples of:

• Operating expenses

• Startup costs

• Variable costs

• Sales-related costs

Which of the following expenses would fluctuate based on production output?

• Monthly rent

• Equipment insurance

• Cost of raw materials

• Web hosting subscription

A small manufacturer wants to understand where cash is being spent across operations. What document should they review?

• Customer feedback report

• Cash flow statement

• Market share analysis

• Revenue projection model

Which component is NOT typically found in a cash flow statement?

• Cash from operations

• Cash from investing

• Cash from promotions

• Cash from financing

What is the primary purpose of an operating budget?

• Estimate startup capital

• Track marketing performance

• Forecast daily spending

• Evaluate hiring needs

In the Lean Canvas, the “Unique Value Proposition” answers:

• What marketing channels do we use

• Why customers should choose us

• What our break-even point is

• How we onboard new users