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WorksheetsRegional MIcro-Enterprise Credential
Total questions: 50
Worksheet time: 25mins
Characteristics of successful entrepreneurs include:
determination
regret
self-importance
emotionality
Sherman has had a tough week. First, the bank rejected his application for $500,000 to purchase new equipment necessary to open the salon. Second, one of the stylists who had signed up to help launch the new salon has just called to say she intends to move out-of-state. Third, the landlord delivered the premises in a complete disarray – holes in the walls, the promised paint job not complete, the old air conditioner still non-operational.
reflection
problem solving
talent
friendliness
Which of the following best defines grit?
ability to stop pursuing a task when experiencing initial defeats
ability to follow instructions
ability to seek a different job when a task becomes difficult
ability to keep pursuing your goals despite initial defeats
Successful entrepreneurs can be described as:
unaided
hard to discourage
hard to work with
hard to understand
Which is an entrepreneur?
a small business employee
a small business owner
a small business adviser
a store employee
Entrepreneurs exhibit the following behaviors:
desire for structure and routine
ability to pursue goals despite uncertainty
desire to pursue goals that others establish
content with regular work hours
Characteristics of successful entrepreneurs include:
grime
deference
grit
conformity
Which of the following is an essential skill for a successful entrepreneur and small business leader?
afraid to accept defeat
unafraid to learn new things
unafraid to reject new ideas
afraid of new people and things
Which is an entrepreneur?
the receptionist at the beauty salon
the stylist who creates and sells new hair styling products after hours
the stylist who has worked at the same salon for many years
the receptionist who is looking for a new position with a different salon
Mildred isn’t sure where to turn. All the plans for launching the new business are set – angel investors have provided the $30,000 Mildred needed to purchase the computer equipment necessary to launch a new online business that matches people who refurbish antique cars with both parts suppliers and potential purchasers. The mobile site is ready to go. The bank has promised to process all transactions for a 1% fee plus $2 per transaction.
But Mildred doesn’t know what type of insurance the new business will need. For example, will the business be liable if a supplier takes money and fails to deliver?
Mildred contacts each angel investor to see if anyone knows a lawyer or an insurance agent who might help. The angel investors respond with three recommendations. Mildred calls each one and leaves a message requesting help.
The type of entrepreneurial behavior that Mildred has been exhibiting can best be described as:
comfort engaging with strangers
computer literacy
financial literacy
finding a mentor
Which of the following is an essential skill for a successful entrepreneur and small business leader?
ability to work routine hours
depending on the direction from others (unable to act independently)
ability to overcome early failures
ability to accept defeat
Which of the following best defines self-motivation?
ability to follow the instructions you receive from others
ability to pursue a task without being told what to do by someone else
ability to work normal business hours
ability to complete a task when reminded what to do by a supervisor
Is the workplace expectation for being absent different than the high school expectation?
No – the expectations for absenteeism are the same at work and at high school
Yes – being absent from work carries greater penalties than being absent from school
Yes – being absent from school carries greater penalties than being absent from work
Unclear
Which of the following is a work expectation:
spending plans are changed on a weekly basis
employees understand budgets and use them to manage the funds they spend
employees can ignore new people who come to the workplace
on your birthday you get to take the day off
Which of the following is a school expectation:
coordination of vacations so that not too many people take off at the same time
everyone has a performance review (like a test) on the same day
detailed safety training, with termination for unsafe behavior
second tardy results in termination
One advantage of establishing a new company as some type of a corporation is:
makes the company immune from being sued
guarantees the company will be lower cost
may shield owners from liabilities of or judgments against the company
will help the company qualify for federal small business administration loans
The government agency whose mission is to grow the economy of the state of Louisiana is:
Louisiana Economic Development
Secretary of State
Workforce Commission
Internal Revenue Service
Which of the following is a federal government agency:
Internal Revenue Service (IRS)
Louisiana Workforce Commission (LWC)
Department of Defense (DoD)
Better Business Bureau (BBB)
Which of the following is a state government agency:
Internal Revenue Service (IRS)
Louisiana Workforce Commission (LWC)
Department of Defense (DoD)
Better Business Bureau (BBB)
What is a “registered agent?”
a government official
an advertising agency representative
an officer of the court
an individual responsible for receiving legal documents
A guarantor:
must be a business or individual located in-state
is a credit-worthy individual or business responsible for repaying a loan if the debtholder cannot
assumes no legal responsibilities
has limited liquidity
James has found a great deal. A local gardening service owner wants to retire right away. She offers to sell James her truck, her equipment and all her customer relationships for $100,000, but she demands an answer within 36 hours or she’ll make the offer to someone else. The annual revenue from these customers is $250,000 at prices higher than James charges. James estimates the value of the used truck and equipment is over $100,000.
What type of financing should James seek?
online credit
angel investors
bank credit
none – the numbers indicate this will not be a good deal
Online loans are:
only available to companies in a limited number of industries
easier to obtain but more expensive than bank loans
easier to obtain and less expensive than bank loans
easier to obtain and about the same cost as a bank loan
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
Which is a form of debt?
stock
option
loan
passbook
Which factors reduce the cost of borrowing from a bank?
a track record of repaying past debt at that bank
a track record of consistently delinquent payments
other outstanding loans at that bank
other outstanding online loans
Compared to an online loan, a bank loan is:
only for adults above a certain age
less expensive (lower interest rate)
more expensive (higher interest rate)
approximately equal in terms of interest rates
Mariah has a dream – party photo booths that can also record birthday greetings and songs. Mariah has developed prototype equipment, but a really good rig would cost $8,000, which is much more than Mariah has saved working part-time during community college. There is no track record for this business, no pro forma. But Mariah is sure that this is a great idea, and is fired up to build the equipment and start marketing this new concept.
What type of financing should Mariah seek?
bank credit
credit card credit
online credit
angel investors
Which factors reduce the cost of borrowing from a bank?
an outstanding note payable
lots of company assets
a guarantor
multiple mortgages
Compared to a bank loan, an online loan is:
usually available at a lower interest rate
usually harder to obtain
only for adults above a certain age
usually available at a higher interest rate
The financial term “mortgage” refers to:
money borrowed to buy real estate
an investment that pays dividends
ownership in a company
the ability of a company to raise funds
The financial term “fiscal year” refers to:
three months for measuring financial results
six months for measuring financial results
the period of time when inventory is counted
twelve months for measuring financial results
To determine whether a business opportunity is realistic, the entrepreneur must:
develop a pro forma that shows a profitable enterprise
develop a bank credit application
develop effective advertising
develop a network of angel investors
The fixed costs of a business:
vary based on the season
do not vary based on the units sold by the enterprise
do not vary except when the enterprise increases sales volumes
must exceed variable costs
A business plan has the following purpose:
convinces investors to consider supporting a new venture
legally required filing with the Secretary of State on the geauxBIZ website
determines the taxes owed by a company
convinces employees to accept their first job offer
Which steps are part of the pre-launch research an entrepreneur should complete?
fringe benefits analysis
corporate articles
competitive analysis
news coverage analysis
Differentiation:
indicates how a business will succeed during a recession
indicates how a business will file required government documents
indicates how a business is different from – and better than – competitors
requires a detailed analysis, including a balance sheet and an income statement
When an asset serves as collateral, this means:
the owner can’t sell that asset unless the IRS gives permission
the company has used the value of that asset to secure a loan
the owner has used the value of the asset to hire a new employee
the company cannot spend any funds repairing the asset
What is a possible advantage that a small business would have versus a larger, better-funded competitor?
ability to respond to trends and opportunities more quickly
ability to apply for bank loans more quickly
ability to file government forms more quickly
ability to move office furniture and equipment to a new location
Businesses should always set their prices:
above the amount they owe to the bank
below the prices of all competitors
above the prices of all competitors
above variable costs
Principle is different than principal. A principal is the leader of a school. Principle is
the amount of profits a company earns in a fiscal year
the amount of money a company pays its employees during a month
the amount of money provided to suppliers
the amount of money borrowed from a bank or lending company
At its simplest, profit equals:
assets minus liabilities
net worth minus expenses
revenue minus costs
revenue per unit minus debt
Effective marketing and advertising involves:
developing rapport with individual customers, one at a time
completing a cost analysis of the company’s office space
developing online payroll systems
developing messages that build favorable impressions among target customers
When launching a business, which is NOT a critical consideration?
cost analysis
competitive analysis
office space analysis
location analysis
Companies spend money on insurance:
because the IRS requires companies to show proof of insurance when they file a tax return
because companies want to protect themselves from different types of risks, for example like property damage
because investors require property insurance on a company’s headquarters
because insurance helps companies increase revenues, for example online sales
An example of a variable cost at a restaurant is:
food
cash register
oven
monthly rent
An example of a fixed cost at a restaurant is:
monthly rent
beverage
hourly labor
Corporate social responsibility:
requires companies to make donations to charities, equal or less than their state taxes owed
is a way mission-driven companies can serve society while earning profits for shareholders
focuses companies on serving the most profitable customers
requires regulatory approval from both state and federal government agencies
Which of the following are NOT stakeholders:
employees
shareholders
customers
website visitors
An example of intellectual property is:
computer hardware
computer software you purchase
computer software you create and sell
computer repair services
