Free Printable MicroEntre test prep 2

1.

Which two groups benefit most from a well-written business plan?

(Choose two)

a)

Distributors

b)

Investors

c)

Potential customers

d)

Business owner

e)

Suppliers

2.

Which of the following should be addressed in the description section of a business plan?

a)

target markets

b)

names of possible employees and their skills

c)

list of competitors

d)

code of ethics

3.

Match the business legal structure to its unique characteristic: Sole Proprietorship

a)

Terminates upon death of a partner

b)

Double-taxed, but best for international businesses

c)

Best for a single member seeking low risk

d)

Easy to setup, but has unlimited liability

e)

Owned by no one; pays no U.S. federal tax

4.

Match the business legal structure to its unique characteristic: General or Limited Partnership

a)

Terminates upon death of a partner

b)

Double-taxed, but best for international businesses

c)

Best for a single member seeking low risk

d)

Easy to setup, but has unlimited liability

e)

Owned by no one; pays no U.S. federal tax

5.

Match the business legal structure to its unique characteristic: C Corporation

a)

Terminates upon death of a partner

b)

Double-taxed, but best for international businesses

c)

Best for a single member seeking low risk

d)

Easy to setup, but has unlimited liability

e)

Owned by no one; pays no U.S. federal tax

6.

Match the business legal structure to its unique characteristic: S Corporation

a)

Terminates upon death of a partner

b)

Double-taxed, but best for international businesses

c)

Best for a single member seeking low risk

d)

Easy to setup, but has unlimited liability

e)

similar to a C Corporation, but was designed for smaller businesses

7.

Match the business legal structure to its unique characteristic: Nonprofit Corporation

a)

Directed by a Board of Directors or Trustees. Pays no U.S. federal taxes.

b)

Double-taxed, but best for international businesses

c)

Best for a single member seeking low risk

d)

Easy to setup, but has unlimited liability

e)

similar to a C Corporation, but was designed for smaller businesses

8.

Match the business legal structure to its unique characteristic: Limited Liability Company

a)

Directed by a Board of Directors or Trustees. Pays no U.S. federal taxes.

b)

Double-taxed, but best for international businesses

c)

Legal structure for one or multiple owners who desire more liability

d)

Easy to setup, but has unlimited liability

e)

similar to a C Corporation, but was designed for smaller businesses

9.

The owner of a mobile food truck plans to sell tacos, hamburgers, and other foods to employees in a large office complex. Before opening his business, the owner will most likely need to obtain which of the following documents from each employee to verify they have completed a course in food handling safety?

a)

Zoning variance

b)

License

c)

Certificate

d)

Pass

10.

A carpenter wants to start his own business building custom cabinets. Unfortunately, he has no business training and needs assistance writing a business plan, finding funding, and obtaining general advice.

Which agency should the carpenter utilize?

a)

USDA

b)

SCORE

c)

SBA

d)

HUD

11.

The owner of a used car sales business is analyzing the cash flow for his business for the prior year. In January, the opening inventory balance of automobiles was $208,000. A total of 350 cars were added during the year at an average price of $4,000 each, $1,508,000 worth of these cars were sold to customers by the final day of December.

What is the ending inventory value?

a)

$100,000

b)

$1,400,000

c)

$1,716,000

d)

$1,608,000

12.

The owner of a real estate office prepared a cash flow budget for the coming month. The beginning cash balance was $1,500. Projected revenue and costs are: revenue of $5,000 supply costs of $1,000 staff payroll of $2,500 rent of $1,000 insurance of $100

Match the dollar amount to the correct line item on a cash flow budget: What is $6,500?

a)

Ending cash balance

b)

Cash inflow

c)

Available cash

d)

Cash outflow

13.

The owner of a real estate office prepared a cash flow budget for the coming month. The beginning cash balance was $1,500. Projected revenue and costs are: revenue of $5,000 supply costs of $1,000 staff payroll of $2,500 rent of $1,000 insurance of $100

Match the dollar amount to the correct line item on a cash flow budget: What is $4,600

a)

Ending cash balance

b)

Cash inflow

c)

Available cash

d)

Cash outflow

14.

The owner of a real estate office prepared a cash flow budget for the coming month. The beginning cash balance was $1,500. Projected revenue and costs are: revenue of $5,000 supply costs of $1,000 staff payroll of $2,500 rent of $1,000 insurance of $100

Match the dollar amount to the correct line item on a cash flow budget: What is $5,000

a)

Ending cash balance

b)

Cash inflow

c)

Available cash

d)

Cash outflow

15.

The owner of a real estate office prepared a cash flow budget for the coming month. The beginning cash balance was $1,500. Projected revenue and costs are: revenue of $5,000 supply costs of $1,000 staff payroll of $2,500 rent of $1,000 insurance of $100

Match the dollar amount to the correct line item on a cash flow budget: What is $1,900 ?

a)

Ending cash balance

b)

Cash inflow

c)

Available cash

d)

Cash outflow

MicroEntre test prep 2

Total questions: 15

Worksheet time: 15mins

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