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WorksheetsESB 21-45
Total questions: 16
Worksheet time: 8mins
What is one impact that a company might experience as a result of an ethical violation?
A minimization of the company's operational costs and expenses
An opportunity to maximize profit
Reputation damage and significant loss of customers' trust
An increase in the opportunity to gain market share
An investor is comparing the income statements of two publicly traded companies. The amount of revenue is significantly higher for one than the other. The investor is wondering if the comparison between the two companies is valid.
Why should this investor feel comfortable with the validity of this information.
Each company used its own accountant
The same accountant is used by both companies.
Public companies recognize revenue using the same rules
The same bank is used by both companies
A plumber is analyzing the cash flow for the firm for the prior year. The beginning inventory balace was $5,350. New inventory purchases were $6,560. $4,760 of items were used on work for clients.
What was the ending inventory value?
$7150
$1,800
$11,910
$590
What is a drawback of equity funding?
The entrepreneur must share profits with other equity investors
Debt payments increase a business's fixed costs.
Repayment reduces available cash.
If payments are not made, the lender can force a business into bankruptcy.
The owner of a landscaping business has noticed that none of his competitors are designing or installing ponds or other water features for the gardens they create.
What should the owner do First to determine if offering water features is a good way to set his business apart from his competitors?
Determine if there is a supply chain available
Perform a financial audit to determine if there is enough money available to add the new service
Contact the water department to see if they can support the extra demand for water
Ask the customers in the area if they are interested in adding a water feature to their gardens
What is a benefit of buying a successful existing business?
Adherence to standardized operations
Guaranteed profits
Ease of change implementation
A proven operation
The owner of Alpha Cabinetry needs to interpret the company's annual financial statements, as well as parts of the income statement, including net sales, total cost of goods sold, gross profit, total expenses, pre-tax profit, and net profit.
What is the net sales?
$59.060
$60,560
$72,620
$73,620
The owner of Alpha Cabinetry needs to interpret the company's annual financial statements, as well as parts of the income statement, including net sales, total cost of goods sold, gross profit, total expenses, pre-tax profit, and net profit.
What is the Total Cost of Goods Sold
$11,060
$14,060
$58,560
$59,060
The owner of Alpha Cabinetry needs to interpret the company's annual financial statements, as well as parts of the income statement, including net sales, total cost of goods sold, gross profit, total expenses, pre-tax profit, and net profit.
What is the gross profit?
$58,560
$59,060
$72,620
$73,620
A professional wood worker that makes custom cabinets has decided to offer credit to customers with a credit card.
Why would the wood worker have to raise process after this decision?
To broaden the firm's customer base
To collect outstanding payments more quickly
To ensure customers are qualified to buy via credit card
To offset any relevant processing fees
A new audio repair shop has introduced technology that is better at diagnosing malfunctions and will save consumers money. The owner hopes the change is newsworthy so the local media will report it to the public.
Which type of promotional tool is the owner hoping to use?
Personal Selling
Advertising
Publicity
Sales Promotion
A residential contractor is developing a new housing subdivision. The contractor is trying to identify the value proposition that will attract young families to that location.
Which value proposition is appropriate for this target demographic?
A golf course is within easy walking distance
A new school is planned adjacent to the subdivision
Ease of supply delivery to construction site
Inexpensive building materials are going to be used.
A real estate broker is applying for two loans at the bank. The first one is to purchase an office building. The second one is to provide operating cash to pay utilities and office staff until until some receivables are collected.
Why would a bank be more inclined to approve the first loan but not the second?
The office building loan is for a greater amount and the bank could charge a higher rate of interest.
The office building loan would have the building as collateral but the operating loan has no collateral.
The operating loan is for a shorter period of time and the bank would charge a lower interest rate.
The operating loan is unsecured and the term would be for a longer period of time.
Which exit strategy is used when a cheese manufacturing company sells shares of stock to the general public?
Initial public offering
Management buyout
Liquidation
Employee stock ownership plan
A plumber wants to hire an assistant so the business can expand to another geographic location. The company is two years old, and the assistant position requires the ability to work independently. The ad has been posted with all job details and candidate has begin.
Which factor will help the plumber choose the candidate that meets this human capital need?
The likelihood the candidate will stay in the job for two years
The marital status of the candidate selected
Whether the business can afford to pay the assistant
Whether the performance of the assistant can be assessed
A plumber wants to hire an assistant so the business can expand th another geographic location. The company is two years old, and the assistant position requires the ability to work independently. The ad has been posted with all job details and candidate review has begin.
Which factor will help the plumber choose the candidate that meets this human capital need?
The likelihood the candidate will stay in the job for two years
The marital status of the candidate selected
Whether the business can afford to pay the assistant
Whether the performance of the assistant can be assessed
