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WorksheetsFinancial Analysis for Entrepreneurs
Total questions: 30
Worksheet time: 32mins
Name
Class
Date
1.
An understanding of financial concepts will help entrepreneurs:
a)
control business expenses.
b)
recruit better employees.
2.
What could happen to the business if the entrepreneur does not act ethically in all areas of the business, particularly in finance?
a)
The business would likely increase customer satisfaction and customer retention.
b)
The business would likely experience legal consequences and closure of the business.
3.
Some businesses can be started on a shoestring budget, while others may require considerable investment in inventory or equipment.
a)
True
b)
False
4.
Every business has the same specific cash needs regardless of the stage of development of that business.
a)
True
b)
False
5.
When it comes to money and the cost of starting a new business, the entrepreneur should plan for the unexpected.
a)
True
b)
False
6.
In order to determine startup costs, the entrepreneur must first identify all:
a)
expenses
b)
suppliers
c)
competitors
d)
profits
7.
These are long-term investments in land, buildings, and equipment.
a)
Operating Expenses
b)
Capital Expenses
8.
The costs of day-to-day operations. These include wages, utilities, insurance, supplies, and advertising.
a)
Operating Expenses
b)
Capital Expenses
9.
This is a budget that projects income and expenses from the beginning of a new business until it becomes profitable.
a)
Start-Up Budget
b)
Sales Budget
10.
The small business owner's personal financial contribution to the business.
a)
Debt Capital
b)
Equity Capital
11.
The money that others loan to the small business for start-up.
a)
Equity Capital
b)
Debt Capital
12.
A report on the amount and source of revenue and the amount of and type of expenses for a specific period of time.
a)
Income Statement
b)
Balance Sheet
13.
Describes the type and amount of assets, liabilities, and capital in a business on a specific date.
a)
Balance Sheet
b)
Income Statement
14.
These are the things of value that the business owns.
a)
Assets
b)
Liabilities
15.
These are the amounts the business owes.
a)
Assets
b)
Liabilities
16.
This is the difference between the amount of assets and the amount of liabilities; this is the value of the business.
a)
Capital
b)
Accounts Payable
17.
The statement of cash flows is useful in determining the ability of the small business to
a)
produce good products.
b)
pay its bills.
18.
Progressively increasing sales revenue is a
a)
positive indication of success.
b)
possible indication of fraud.
19.
These are fixed costs such as rent, insurance, utilities, and salaries for employees.
a)
Overhead Costs
b)
Industrial Costs
20.
Good financial records will help the entrepreneur:
a)
monitor the progress of the business.
b)
prepare financial statements.
c)
prepare tax returns.
d)
do all of these.
21.
When an entrepreneur requests a loan, one of the first things a lender looks at is:
a)
the entrepreneur’s resume.
b)
personal and business credit history.
c)
the entrepreneur’s marital status.
d)
family medical history.
22.
Some vendors might act fraudulently toward the small business by charging for products that were never delivered.
a)
True
b)
False
23.
Fraud against the small business will rarely have a devastating impact on the success of the small business.
a)
True
b)
False
24.
Paying financial obligations in a timely manner will help the small business establish a worthy credit reputation.
a)
True
b)
False
25.
Before starting the process of preparing a loan request, the entrepreneur should conduct a personal credit check.
a)
True
b)
False
26.
A good personal credit history for the entrepreneur will have no impact on the terms of the loan for the small business.
a)
True
b)
False
27.
Cloud based accounting software is a technological trend that makes maintaining financial records easy and convenient for the small business owner.
a)
True
b)
False
28.
Most small business owners will use a combination of equity capital and debt capital to start their business.
a)
True
b)
False
29.
Some vendors might act fraudulently toward the small business by over charging for products.
a)
True
b)
False
30.
To avoid fraud the entrepreneur should carefully examine billing statements for accuracy and compare those statements to the actual deliveries.
a)
True
b)
False
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