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WorksheetsChapter 7 Entrepreneurship
Total questions: 20
Worksheet time: 10mins
The bedrock principle of business is that it should ________.
please its customers
advertise better than its competitors
earn a profit
continually improve
Which two categories below are used for business costs?
materials and labor
gross and net
fixed and variable
cost of goods sold and administrative
A litmus test for profitability is ________.
the business plan
the economics of one unit (EOU)
the business model
net profit
There are two categories of variable costs: ________.
net variable costs and cost of goods sold
gross costs and net variable costs
cost of goods sold and other variable costs
interest and taxes paid
Other variable costs per unit subtracted from Total COGS per unit equals ________.
cost of goods sold per unit
contribution margin per unit
total other variable costs per unit
operating margin per unit
Start-up investment is the one-time expense of opening a business. It is also called ________.
entry cost
seed capital
down payment
beginning capital
If you sell $2500 worth of product, pay COGS of $800 and other variable costs of $360, what is your gross profit
$1340
$1700
$2464
$2500
The cost of material used to make a product and cost of labor used to make the product is associated specifically with a single ________ of sale.
unit
hour
dozen
dollar
Business start-up cost information can be obtained from ________.
advisors
quotations from vendors
industry data
All of the above
You should keep reserves of at least ________.
3 months of fixed operating costs
6 months of fixed operating costs
one half of the start-up investment
one year of fixed operating costs
________ will tell you how long it will take you to earn enough profit to cover your start-up investment.
Return on sales
Return on assets
Payback
ROI
Depreciation is a(n) ________.
fixed operating cost
variable cost
flexible cost
administrative cost
Which of the following is not a category of fixed costs?
rent
advertising
capital
depreciation
The percentage of value of an asset subtracted each year until the value becomes zero, to reflect wear and tear on the asset, is called ________.
depreciation
inventory
deductible
reduction
Total Revenue divided by ________ = units sold.
selling price
profit
total operating costs
cost
In the phrase I SAID U R + "Other FXs", UR stands for ________.
utilities, rent
unknown rates
unforeseen revisions
unforeseen rates
Fixed operating costs ________.
are not included in COGS
are not direct costs of creating each product
include expenses like rent
All of the above
________ is what remains when you subtract fixed and variable costs and taxes from revenues.
Operating profit
Gross profit
Net profit
Gross margin
Why is it best to pay expenses for your business with a check (Cheque), not with cash?
A check (Cheque) can't be traced.
Cash is easier to lose.
A check (Cheque) provides written proof of payment.
Paying with a check (Cheque) keeps check printing companies and banks in business.
The systematic recording, reporting, and analysis of the financial transactions of a business is called ________.
accounting
reconciliation
cost analysis
cash flow analysis
