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WorksheetsMicro Enterprise 50 Questions
Total questions: 50
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
Parker needs money to expand the warehouse. By expanding the warehouse the company will be able to carry a lot more inventory, which will make it possible for them to fill more customer orders much more quickly. This expansion will cost approximately $150,000 in construction costs. Purchasing the additional inventory will cost $50,000. Over the next two years Parker believes this will increase sales 20% and profitability 25%. What type of financing should Parker seek?
online credit
credit card credit
bank credit
none, the numbers indicate this will not be a profitable outcome
Pricing strategies may include:
maximizing debt through effective loan applications
completing audited financial statements
maximizing revenues for different products using different price points
maximizing units sold through effective advertising themes
Revenue per unit minus cost of goods sold equals:
unit breakeven
contribution margin
income pro forma
debt service
Robin has been working throughout the week to get ready for the store opening on Friday. The tiles for the entryway were not delivered on time, but Robin took the company van and picked up the tiles at the vendor's warehouse. When the utility did not connect the electricity on Monday, Robin stayed on hold for an hour before finding a supervisor who sent a utility tech right away. The type of entrepreneurial behavior that Robin has been exhibiting over the past week can best be described as:
independence
optimism
determination
computer literacy
Self-discipline can best be defined as:
perspective
persistence
prediction
prescription
Successful entrepreneurs can be described as:
unfriendly
change agents
reactive
passive
The financial term liability refers to:
a weakness in the company's financial structure
the ability of the company to raise funds
the ability of the company to secure loans
a debt or a loan a company must repay
The fixed costs of a business:
must be different each month
include the cost of production materials
are the same no matter how many customers the business services
must exceed variable costs
The geauxBIZ portal is:
a Louisiana Workforce Commission small business owners use to hire employees
a Louisiana Secretary of State website entrepreneurs use to register a company
a Louisiana Revenue website businesses use to pay taxes
a joint state and federal website for filing IRS forms
The government agency that enables companies to register to do business in the state of Louisiana is:
Department of Commercial Licenses
Secretary of State
Workforce Commission
Internal Revenue Service
The maturity of a loan is:
how long it takes to receive loan approval from the bank
the timeframe by which the borrower must repay the loan
the interest rate on the loan
the balance of an outstanding loan
The profit margin on an item a company sells can best be defined as:
price of the unit minus unit cost of goods sold
total debt minus annual debt payment
variable cost per unit
total company revenue minus total company costs
To determine whether a business opportunity is realistic, the entrepreneur must:
determine the color scheme of the company's proposed logo
determine how the company will advertise
determine the corporate officers of the competitors
determine how much capital is required to launch the business
Total revenues minus total costs equals:
contribution margin
unit breakeven
profits before owner compensation and taxes
future value profits
What is a registered agent?
a government official
an individual responsible for receiving legal documents
an advertising agency representative, 2 an officer of the court
an advertising agency representative
When launching a business, which is NOT a critical consideration?
what type of bank account the company will use
physical or virtual location
how the new company's product or service is different from or better than competitor products or services
identifying team members with important skills the new business can hire
Which factors reduce the cost of borrowing from a bank?
a guarantor
an outstanding mortgage
other outstanding loans
available phantom assets
Which is an entrepreneur?
a parking lot attendant
a corporate vice president of human relations
a state government official
a woman who designs and makes her own line of clothing and sells them to her friends
Which is an entrepreneur?
the bank CEO who started out as a teller 30 years ago
the convenience store clerk
an adult who started cutting grass as a pre-teen and now runs a gardening business with a sibling
a manager of the biggest chain grocery store in the state
Which of the following best defines self-motivation?
ability to start and finish a task without giving up despite obstacles that might arise
ability to ignore directions and do things your way
ability to develop a plan to get something done
ability to follow directions effectively
Which of the following is a school expectation:
perfect attendance or expulsion / termination
driving and texting results in expulsion / termination
two weeks of vacation
two months of summer vacation
Which of the following is a state government agency?
Secretary of State Militia (SSM)
Department of Defense (DoD)
Small Business Administration (SBA)
Louisiana Economic Development (LED)
Which of the following is a work expectation?
unsafe behaviors are addressed tolerantly
serious consequences for failures in self-discipline
serious consequences for failures in self-discipline
coming into contact with strangers during a typical day is unusual
Which of the following is an essential skill for a successful entrepreneur and small business leader?
ability to complete complicated mathematical functions
ability to use hand tools
ability to intimidate others
ability to interact in a friendly and effective way with people you don't know
The government agency that enables companies to register to do business in the state of Louisiana is:
Workforce Commission
Secretary of State
Department of Commercial Licenses
Internal Revenue Service
