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Final Exam Review 12-5

Total questions: 11

Worksheet time: 6mins

Name
Class
Date
1.

Drew has an idea for a new company and needs money to start his business. Drew finds an investor willing to give him money in exchange for a portion of Drew’s new company. What term describes the type of financing the investor is willing to give Drew?

a)

Small business loan

b)

Venture capitalists

c)

Debt financing

d)

Equity financing

2.

Identify which are advantages of owning a franchise

a)

Ability to make business changes

b)

Profit sharing with franchisor

c)

Established product/service

d)

Provided training and support

3.

Which term describes a person who takes an innovative idea and turns it into a profit?

a)

Entrepreneur

b)

Manager

c)

Angel investor

d)

Venture capitalist

4.

Last year, Rosa spent $130,000 for merchandise she sold. She had net sales of $200,000 and expenses of $40,000. What is Rosa’s net profit?

a)

$70,000

b)

$30,000

c)

$130,000

d)

$330,000

5.

Which term describes a person who takes an innovative idea and turns it into a profit?

a)

Manager

b)

Angel investor

c)

Venture capitalist

d)

Entrepreneur

6.

Which term describes the value of the next best alternative?

a)

Current liability

b)

Marginal cost

c)

Limited warranty

d)

Opportunity cost

7.

Why is Walmart considered a “click and mortar” business?

a)

Business model that is located in both rural and urban areas

b)

Offers both electronic and home repair supplies

c)

Employs individuals who work both full-time and part-time

d)

Business that includes both a website and a physical store

8.

Which of the following is a critical factor in the success of a business, especially for brick and mortar retail?

a)

Warehouse

b)

Domain

c)

Ownership

d)

Location

9.

Laura owns a t-shirt business with fixed costs of $50,000 a year. Her selling price per shirt is $15. Each shirt has a variable cost of $5. How many shirts does Laura need to sell to break even?

a)

25,000

b)

5,000

c)

3,333

d)

15,000

10.

Isabella owns a business in Utah that sells candy and chocolate products made in other countries. What term describes these products that are brought into the USA to be sold in Utah?

a)

Exports

b)

Services

c)

Imports

d)

Acquisition

11.

Which term refers to dividing a market into smaller groups based on similar characteristics and needs?

a)

Market share

b)

Market mix

c)

Market segmentation

d)

Market saturation