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WorksheetsMEC Practice Test (from coaching reports)
Total questions: 35
Worksheet time: 35mins
Pat has been saving for two years in order to afford a used food truck. Yesterday Pat saw a new food truck on sale for just $5,000 more than the price for the used truck included in the business pro forma for his bank loan. He really wants this truck but will not have enough money so he tries to figure out a way to get the extra money. He look back at his proforma to see where he might be able to cut expenses. Pat is exhibiting what type of behavior?
problem solving
problem avoidance
computer literacy
financial statement anaylis
Characteristics of successful entrepreneurs include:
arrogance
selfishness
self-discipline
being irresponsible
Entrepreneurs exhibit the following behaviors:
self-starter
follower
pessimism
hesitance to work with others
Which of the following is an essential skill for a successful entrepreneur and small business leader?
ability to react positively to unanticipated events
inability to react positively to unanticipated events
inability to communicate effectively in public
ability to accept things the way they are
Which of the following best defines grit?
complacency, the ability to stay disengaged when things are stressful
following directions carefully
tenacity, the commitment to get things done even when its difficult
working hard when someone tells you to work hard
Which of the following best defines self-motivation?
needing others to get you enthusiastic about working
needing others to help you show up for work on time
establishing goals and working hard to achieve them
going with the flow
Successful entrepreneurs can be described as:
isolated
change agents
reactive
passive
Which of the following best defines self-discipline?
persistence and resolve
panic in the face of trouble
indifference
ability to do what you're told
Which is a entrepreneur?
a 12 year old with a snow cone stand
a government official
a waiter at the local restaurant
a convenience store clerk
Fallah knew there just wasn't enough money to keep the business healthy without reducing costs dramatically. But every single employee was valuable - they were all long-time employees, almost lifetime. Fallah decides that he wanted to have a meeting with all the employees to see if there were other ways that the company could cut costs.
comfort engaging with strangers
effective communication skills
problem solving with team members serving as effective decision makers of the business
computer literacy and negotiating skills
Characteristics of successful entrepreneurs include:
requires instructions on routine matters
delivers timely results without being reminded
requires constant management attention
unable to meet deadlines
Which is an entrepreneur?
a manager of the biggest fast food restaurant in Louisisana
a fast food restaurant employee
a fast food restaurant employee who is looking for another job
a fast food restaurant employee who, after work, works on vehicles to make some extra money
Which of the following is a school expectation?
termination for 3 instances of being late
termination for 3 absences
one week of Spring break plus one week Mardi Gras
termination for unsafe behavior
Which of the following is a work expectation:
unsafe behaviors are treated with understanding
serious lapses in self-discipline are treated with compassion
repeated absences result in termination
occasional lateness or absences are OK
Which of the following is a school expectation:
peak efforts during during performance assessments (like tests)
steady consistent, strong effort every day, with or without supervision
no paid vacation
on your birthday you get to take the day off
The state government agency that provides start-up companies with guidance on which paperwork to complete is:
Louisiana Economic Development
Secretary of State
Workforce Commission
Internal Revenue Service
The geauxBIZ portal:
is maintained by LA Economic Development
is maintained by the LA Secretary of State
is maintained by the Federal government to help Louisiana companies pay state taxes
is maintained by the LA Workforce Commission
Which of the following is a federal government agency:
LA Economic Development
Board of Cosmetology
Internal Revenue Service
Barbering Board
Which of the following is a state government agency:
Dept of Defense
Internal Revenue Service
LA Economic Development
Small Business Administration
The government agency that enables companies to register to do business in the state of LA is:
LA Economic Development
Internal Revenue Service
Workforce Commission
Secretary of State
Bank loan applications require:
less information than online credit applications
only general information
detailed information from owners and the applying company
only partial reponses to the questions asked
Compared to a bank loan, an online loan is:
easier to obtain
harder to obtain
equally as easy to obtain
unavailable to new companies
Which factors reduce the cost of borrowing from a bank?
the advertising by a company
the age of the owner of a company
the number of employees a company has
a strong credit record for all of the company's owners
The financial term obligation refers to:
a share of ownership in a company
a debt that has to be repaid
an amount of money that a customer owes your company
a set of forms a company must file with state go
Loan applications require:
only information that makes the applicant seem comfortable
full and truthful disclosure of all information requested
personal information only, no information about the company
information that might be true in the future
Online loan application require:
less information than bank credit applications
more information than bank applicaiton
the same amount of information as bank credit applications
no information about the companys owners
Which statement is true?
bank credit is lower cost (lower interest rate) than online credit
bank credit is higher cost (higher interest rate) than online credit
small businesses can obtain back credit without an application
online credit applications and bank credit applications are basically the same
Bank loan applications require:
lots of detailed information
Only general information
Only information companies want to provide
only information that helps make the company look good
The financial term maturity means:
the term (or amount of time) a debt is scheduled
a person who cosigns for a loan and repays the debt
an investment that pays dividends
a share of ownership in a company
An account receivable is:
money owed by the company to a supplier when the company buys inventory on credit
shareholders equity plus liabilities
the total amount of bonuses paid to top managers
money owed to the company by a customer when the customer makes a purchase on credit
One disadvantage of establishing a new company but not incorporating.
the company will need to fill out additional tax documents
the company owners may be personally liable for financial and legal judgments
the company will be visited by police if they do not incorporate
the company owner will need to pay extra taxes
The financial term guarantor refers to:
the guarantee of a profit for a company
a person or a company that accepts legal responsibility to repay a debt for another person or company
a person or a company that loans money to another person or company
a person or company that accepts responsibility to pay for everything the company needs
The financial term liability refers to
amounts owed to third parties
amounts the company has deposited in their bank
amounts the company will receive from customers
amounts the company receives from selling goods
Cary has the opportunity to lease the space abandoned by the old gift store next door at a bargain price. The landlord is happy to knock down the wall in-between and have the space ready over the next 60 days. The new rent will be very affordable and Cary is absolutely confident the new space will be profitable almost immediately and for the entire four years left on the lease. The only challenge: new fixtures for the new space will cost $40,000 and Cary doesn't have that cash on hand. What might be the best type of credit for Cary to use to finance this store expansion?
online credit, since the application is easier to fill out
Neither - small businesses should never seek credit
neither - if Cary doesn't have the $40,000 on hand
bank credit - the application will take a lot more time to complete but the interest rate will be lower
Equity is:
the ratio of hourly wages to the salary the the company owners
liabilities or obligations owed to 3rd parties
funds invested in a company by shareholders
payments made by customers to the company for unpaid accounts
