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EIE 3rd term quiz

Total questions: 20

Worksheet time: 40mins

Name
Class
Date
1.

When starting a business, you must answer an important question:

a)

How much money do you need?

b)

Where do you go?

c)

How is your teacher?

d)

What are you waiting for?

2.

"One of the main reasons most small businesses fail is that they simply run out of cash,"

a)

They didn't plan their costs

b)

They didn't plan their life

c)

They didn't do a business plan

d)

They have a lot of money

3.

It's easy to overestimate a new company's revenue and underestimate costs.

a)

It means that you calculate more costs than income.

b)

It means that you calculate more income and more costs.

c)

It means that you calculate less costs and less income.

d)

It means that you calculate less costs and more income

4.

Fixed expenses, such as rent, are ___________ from month to month, whereas variable expenses ___________ on the direct sale of products or services.

a)

consistent // depend

b)

different // vary

c)

variable // mantain

d)

equal // influence

5.

Here's a short list of costs you'll likely have as a new business: (more than one option is correct)

a)

Web hosting and other website costs

b)

Rental space for an office

c)

Basic supplies

d)

Sells

6.

Here's a short list of costs you'll likely have as a new business: (more than one option is correct)

a)

Insurance, license or permit fees

b)

Advertising or promotions

c)

Business plan costs

d)

Donations you receive

7.

How much is your total cost annualized in this case? (Ignore the coma when calculating)

a)

184000

b)

18500

c)

184830

d)

184340

8.

Invoices track the sale of a product for inventory control, accounting and tax purposes. Therefore, the invoice ___________ has essential information regarding payment

a)

date

b)

colour

c)

template

9.

An invoice contains ___________ information

a)

seller & buyer

b)

seller

c)

buyer

10.

Invoices are different from purchase orders, because the invoice is created _________ a customer ______ for a good or service.

a)

before // orders

b)

before // pays

c)

after // pays

d)

after // orders

11.

A Business Angel investor uses their personal disposable finance and business or _______________________ to invest in the growth of a small business, generally in start-up or early stage.

a)

professional experience

b)

house

c)

money

12.

Here is what angels particularly care about:


(more than one option is correct)

a)

• The quality, passion, commitment, and integrity of the founders.

b)

• The market opportunity

c)

• A clearly thought out business plan

d)

The money they can get from the business

13.

Breakeven Point is

a)

the point at which sales exactly cover expenses

b)

a waste of time

c)

the point at which I have losses

d)

the point at which I make a profit

14.

Breakeven Point result is related to

a)

money

b)

units, products or services

c)

euros

15.

Breakeven Point formula is

a)

Fixed Costs / (Price per unit) - (Variable costs per unit)

b)

Variable Costs / (Price per unit) - (Variable costs per unit)

c)

Fixed Costs / (Price per unit) - (Fixed costs per unit)

16.

Breakeven Point in this case is _________


F.C.= 5000

P.u.= 160

V.c.u. = 60

a)

50 services a month.

b)

100 services a month.

c)

220 services a month.

17.

Some financial sources are:


(more than one option is correct)

a)

Own resources

b)

Family, Friends & Fools

c)

Credits or Loans

d)

Sponsors

18.

Some financial sources are:

a)

Supliers

b)

Shares

c)

Crowdfunding

d)

All the answers are correct

19.

The balance sheet represents the state of a company's ___________ at a moment in time.

a)

finances

b)

success

c)

assets

d)

All the answers are correct

20.

The balance sheet includes __________ assets, or long-term ___________ and short-term _________ or _____________ liabilities.

a)

short-term // assets // obligations // long-term

b)

long-term // assets // obligations // short-term

c)

short-term // obligations // assets // long-term