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WorksheetsBRAC Micro Enterprise Regional Practice Test Pt 1
Total questions: 25
Worksheet time: 25mins
A breakeven analysis can determine:
how many units the company will need to sell to pay for a new piece of equipment
the identity of future loan guarantors
when a company must pay its bills to avoid bankruptcy
how many customers a new business will need to secure to meet its revenue projections
A business plan has the following purpose
serves as collateral that a company can take to a bank to secure guaranteed loans
serves as a required filing with the Internal Revenue Service
describes in detail how the company's product or service will be differentiated versus its competition
describes in detail how the company will set up its headquarters office
A company balance sheet is the single report that best indicates:
company quarterly cash flow
company assets and liabilities
company financial projections
monthly debt payments and outstanding debt obligations
A conflict of interest is:
when business partners have an honest disagreement about their next advertising campaign
when an accountant disagrees with the IRS on how much a company owes in income taxes
a situation in which an individual might take an action to his/her advantage that would be to the disadvantage of a person or company that believe this individual is serving them
naturally occurring whenever there is competition between small businesses
A guarantor:
must be a business or individual located in-state
assumes no legal responsibilities
has limited liquidity
is a credit-worthy individual or business responsible for repaying a loan if the debtholder cannot
A payment made to an insurance company to cover the costs of an insurance policy is called:
a policy
a premium
a dividend
a beneficiary
Advertising can be important for a new business because it:
communicates a differentiated message to your target customers
is a free form of promotion
allows the new business to set up a network of distributors
is a low-cost method to increase revenues
Amari has had a frustrating week. One of the new employees hired just last week showed up late her first two days, and another didn't even show up one of his scheduled days. Amari talked patiently with both of them in the hope that they could turn their situation around and become valuable team members. Unfortunately, at the same time the bank returned the credit application that took Amari hours to fill out with requests for additional information. Amari had to find the time to find that information and send the application back to the bank. Finally, Amari really wanted to watch the The Voice on television tonight, but decided to stay in the store until closing because the store is short-staffed. The type of entrepreneurial behavior that Amari has been exhibiting can best be described as:
comfort engaging with strangers
financial literacy
self-discipline
pessimism
An employee:
works for someone else
owns a business venture
takes primary financial responsibility for the risk of the business venture
is responsible for contributing equity to the business
An example of a fixed cost is:
cost of goods sold
hourly labor
office supplies
monthly rent
An example of a variable cost is:
overhead salaries
cost of goods sold
the salary of the Finance Vice President
monthly rent
An example of intellectual property is:
a truck
a patent on an invention
stock
electronic bank accounts
Bank loan applications:
can be intimidating, complex and detailed
are easy to complete
are short
can only be completed in the presence of a banker during regular work hours
Businesses should always set their prices:
lower than their competitors prices
low enough so that revenues are below variable expenses
to reflect the value of their goods or services, not just their costs
higher than their competitors prices
Characteristics of successful entrepreneurs include:
grit
submission
self-importance
short attention span
Characteristics of successful entrepreneurs include:
pessimism
territorial
optimism
ineffective
Characteristics of successful entrepreneurs include:
interpretation
indifference
ingratitude
independence
Compared to a bank loan, an online loan is:
less expensive (lower interest rate)
much easier to obtain
only for companies in certain industries
approximately equal in terms of interest rates
Consuelo's gift store has an opportunity that will disappear if they don't move quickly. A competitor is moving to another state and they've offered to sell Consuelo their inventory at 25% of retail value. Consuelo has inspected the inventory, it's in perfect condition and includes all of the most popular items that Consuelo's store sells every day. In the upcoming holiday season 60 days away Consuelo is sure the store can sell pretty much all of this inventory. Unfortunately this offer is only open for 48 hours, after that, the competitor will sell to another buyer. What type of financing should Consuelo seek?
online credit
mortgage
bank credit
none, the numbers indicate this will not be a profitable business decision
Corporate social responsibility:
is the legal requirement that companies make charitable donations before paying dividends
is a government program required for all companies
are voluntary steps beyond a company's financial self-interest that reflect what business leaders believe their companies can or should accomplish
is a form that must be completed each year and filed with the Louisiana Secretary of State
Entrepreneurial problem solvers exhibit the following behaviors:
comfort performing under pressure
ability to forget important details
loyalty to standard practices
comfort conceding defeat
Is the workplace expectation for being on-time different than the high school expectation?
Yes, being late for work carries greater penalties than being late at school
Yes, being late at school carries greater penalties than being late at work
No, the expectations for being on-time are the same at work and at high school
Unclear
Loan applications require:
applicants to offer a guarantee to take whatever
applicants to provide personal and business information that must be truthful
completion all in one sitting
applicants to pay for the right to submit an application
One advantage of establishing a new company as some type of a corporation is:
reduces paperwork the owners have to complete
guarantees the company will be profitable
guarantees higher revenues
ability to shield owners from liabilities of or judgments against the company
One critical difference between bank loans and online loans is:
applicants only have to be completely truthful on a bank loan application
none, they are pretty much the same
the amount of information the applicant must provide
the amount of money the applicant can request
