Business Financials Quiz

Which of the following is NOT considered a startup cost for a taxi service?

• Gasoline

• Office rent

• Driver's salary

• Advertising expenses

What is the primary purpose of operating costs in a business?

• To estimate future sales

• To cover day-to-day expenses

• To calculate startup expenses

• To determine employee salaries

Why is a cash flow forecast important in a business plan?

• It ensures there is enough cash for daily operations

• It calculates the total startup costs

• It estimates the cost of raw materials

• It predicts the number of employees needed

Sales projections help a business to:

• Determine the initial investment required

• Predict future growth and operational needs

• Calculate employee bonuses

• Estimate the cost of office supplies

If a business's sales projections indicate rapid growth, what might the business need to do?

• Reduce the number of employees

• Decrease the number of products

• Expand operations and resources

• Lower the prices of products