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Running A Business Review

Total questions: 27

Worksheet time: 27mins

Name
Class
Date
1.

Someone who starts, operates and assumes the risk of a business venture in the hope of making a profit is known as ...

a)

Agent

b)

Employer

c)

Employee

d)

Entrepreneur

2.

The collective name given to anything owned by a business, including its equipment, stock and cash is called ...

a)

Assets

b)

Income

c)

Debtors

d)

Inventory

3.

Emma owns a cafe. Despite having $1000 in her bank account, Emma's bank allows her to write a cheque to her coffee supplier for $1500.


What type of loan had Emma's bank provided her?

a)

Store Credit

b)

Payday Loan

c)

Bank Overdraft

d)

Mortgage Loan

4.

What is the amount remaining when the cost of goods sold is deducted from sales/revenue?

a)

Assets

b)

Liabilities

c)

Net Profit/Loss

d)

Gross Profit/Loss

5.

The term distribution chain is best defined as ...

a)

A person or business that makes goods

b)

The ways of getting the product to the customer

c)

A business that sells products directly to consumers

d)

To buy products, via a catalogue, for delivery by mail

6.

A store that sells a variety of products concentrating on food items, magazines and newspapers is referred to as ...

a)

Supermarket

b)

Specialty Store

c)

Department Store

d)

Convenience Store

7.

When a company has become a separate legal entity from it's owners (shareholders) ...

a)

Partnership

b)

Incorporation

c)

Franchise

d)

Revenue

8.

A business owned and operated by one person

a)

Partnership

b)

Franchise

c)

Subsidiary

d)

Sole Trader

9.

The ability of a business to pay its debts on time.

a)

Liquidity

b)

Financial Solvency

c)

Free-Trade Agreement

d)

Owners Equity

10.

The costs incurred in running a business ...

a)

Expenses

b)

Gross Domestic Product

c)

Inclusions

d)

Income

11.

The coordination of the human, physical, financial and information resources to achieve the goals of a business

a)

Leadership

b)

Management

c)

Promotion

d)

Risk-Management

12.

Which if the following is NOT an advantage of being self-employed ...

a)

Being Your Own Boss - Independence

b)

Employ Family Members

c)

Possible Tax Advantages

d)

Less Hours of Work

13.

Which of the following is NOT a disadvantage of being self-employed ...

a)

Income is Stable

b)

Risk of Failure

c)

Constantly Solving Problems

d)

High Levels of Responsibility

14.

What does SWOT stand for?

a)

Strengths, Weaknesses, Opportunities, Timing

b)

Shape, Weaknesses, Overheads, Threats

c)

Strengths, Weaknesses, Opportunities, Threats

d)

Strengths, Wages, Opportunities, Timing

15.

Whats does Pty Ltd. stand for?

a)

Propriety Limited

b)

Pricing Limited

c)

Properly Litigated

d)

Primarily Lightened

16.

What is the name of the business structure that is usually owned and operated by between 2 and 20 people.

a)

Sole Trader

b)

Private Company

c)

Partnership

d)

Public Company

17.

Money put into the business by the owner is known as ...

a)

Collateral

b)

Investment

c)

Equity

d)

Dividends

18.

Which of the following is NOT an advantage of equity ...

a)

Cheaper than borrowing

b)

Tax free

c)

If you lose the investment than you have only lost your savings

d)

No interest paid every month

19.

Which of the following is NOT a level of government ...

a)

Federal

b)

County

c)

State

d)

Local

20.

Which of the following is the Federal Government NOT responsible for

a)

Aiding by Any Pollution Controls

b)

PAYG Income Tax and Fringe Benefit Tax

c)

Collection of GST

d)

Provisions for Employee Superannuation

21.

Which of the following is the State Government NOT responsible for ...

a)

Provision of Employee Entitlements

b)

Not Engaging in Misleading or Deceptive Advertising

c)

Adequate and Non-Deceptive Labeling of all Foodstuffs and Clothing

d)

The Size, Shape and Location of Business Signs

22.

Which of the following is Local Government NOT responsible for ...

a)

Determining Land Zoning and Approving New Development Applications

b)

Not Engaging in Anti-Competitive Practices

c)

Parking Regulations, Especially Fire Prevention Facilities

d)

Health Regulations, Especially the Safe Handling of Food.

23.

How long is the time frame that decides whether or not an asset or liability is current?

a)

12 Months

b)

2 Years

c)

6 Months

d)

5 Years

24.

Which of the following is NOT a current asset?

a)

Cash

b)

Inventory

c)

Trademarks

d)

Short-term Deposits

25.

Which of the following is NOT a Non-Current asset?

a)

Prepaid Expenses

b)

Property

c)

Bonds & Stocks

d)

Patents

26.

The accounting equation used to determine the value of assets is:

Assets =

a)

Liabilities + Taxable Income

b)

Liabilities + Owner's Equity

c)

Net Worth + Owner's Equity

d)

Net Worth + Liabilities

27.

The accounting equation used to determine Net Worth is:

Net Worth =

a)

Owners Equity / Liabilities

b)

Liabilities + Assets

c)

Principle Interest x Assets

d)

Assets - Liabilities