WorksheetsESB Semester Exam Review
Total questions: 56
Worksheet time: 30mins
Diego’s family has opened a hamburger stand. Diego thought it would be a good idea to use a similar
name, logo, and menu as his favorite large hamburger chain. This would show customers that his family’s
business provides the same quality. Several months later, Diego’s family received a letter from an
attorney telling them to cease and desist from making it look like their hamburger stand is part of
the chain. Which type of intellectual property is at issue in this example?
Patent
Copyright
Trademark
Service Mark
Equity financing requires a business owner to give up control of the business to obtain funding
True
False
Bootstrapping requires the owner of the company to provide all the funding.
True
False
Cohen creates a new cellphone case for the latest iPhone that is said to rival the most protective on the market. Which intellectual property law would best protect Cohen's design?
copyright
patent
trademark
Which section of the business plan is focused on customer retention, growth and acquistion?
Marketing
Organizational
Financial
Executive Summary
Which documents summarize a business plan of a company?
lean canvas
marketing plan
business plan
pitch deck
What protects this brand logo?
trademark
copyright
patent
trade secret
Which role oversees the company finances?
CFO
CEO
COO
Stakeholder
Which role oversees daily operational and administrative functions?
CFO
CEO
COO
Stakeholder
Which role reports to the board of directors?
CFO
CEO
COO
Stakeholder
You own a lawn care business. You have employees who work long hours laboring in good weather, often exceeding 40 hours per week. They also work short hours when the weather is bad, sometimes they can't work at all. You do all of the sale for your business. Which 2 types of compensation would be appropriate for these landscape employees?
Salary
Equity
Commission
Hourly
What is the only structure with UNLIMITED liability?
S-Corp
C-Corp
Sole Proprietorship
LLC
What is the only structure that is subject to double taxation?
S Corp
C Corp
Sole Proprietorship
LLC
What is the biggest drawback and risk for Sole Proprietorship structures?
Easy to set up
unlimited personal liability
taxed twice
international business laws
You need to create a legal structure for your small business. You have plans for it to grow and hope in the future to sell shares to the public. Your startup partners are citizens of Mexico and Japan. You do not want to be personally responsible for business liabilities.
Which legal structure should you set up for your business?
S Corp
LLC
Sole proprietorship
C-Corp
You need to create a legal structure for your small business. You would like some of the benefits enjoyed by large corporations, but do not want to be taxed twice. You have four partners who will be shareholders. None of you plan to sell your ownership shares to the public, but do want to be protected from business liabilities.
Which legal structure should you set up for your business?
LLC
Sole Proprietorship
C-Corporation
S-Corporation
A business that takes its name and characteristics from an existing business chain.
(a)
What is a tangible item?
product
service
Which elements are INTERNAL (inside the business)?
opportunities and threats
strengths and weaknesses
strengths and opportunities
weaknesses and threats
Which elements are EXTERNAL (outside of the business)?
weaknesses and strengths
opportunities and strengths
opportunities and threats
strengths and weaknesses
A new competitor (a business selling similar products) has opened nearby
strengths
weakness
opportunity
threat
A new customer moving into the area is a(n)
strength
weakness
opportunity
threat
A _____ is a particular group of consumers at which a product or service is aimed.
target market
differentiated offering
pro forma
patent
Identifying your target market makes it easier and more cost effective to ______.
appeal to everyone
sell your products to the masses
reach your potential customers
push away unnecessary customers
A(n) _______________ competitor is a business that sells different products or services as another business.
direct
neighbor
sales
indirect
Marketing is used to:
SELECT ALL THAT APPLY
Build your brand
increase your sales
Attract qualified leads
The four segments of data are:
(SELECT ALL THE APLLY)
Behavioral
Geographic
Demographic
Psychographic
Tells you who your customer is by providing statistical information about their age, gender, location, education level, income level, etc.
demographics
psychographics
geographics
target marketing
Demographic data is statistical information about their customers. Some examples of demographic data might be:
(SELECT ALL THAT APPLY)
age
gender
ethnicity
income
employment
Sally ended June with 500 customers. She started June with 410 customers. During June, she acquired 110 new customers. Find her retention rate.
(hint: CRR= [(E-N)/S]X100 )
95%
95
100%
32%
If a company spends $50,000 on marketing and $5,000 on sales and they gain 500 customers. what is their Customer Acquisition Cost?
{hint: CAC= (marketing costs + sales costs) / # of customers }
110
500
300
700
If the CAC is high, the marketing is:
ineffective
effective
A(n) (a) refers to the net profit the company wants to make from the sale and is usually represented using a percentage. [Selling Price]
(a) is the owner's remaining value after all liabilities have been deducted. [Basic Financial Statements]
The (a) point is the amount of revenue required to cover expenses. [Basic Financial Statements]
The formula to determine the selling price is: (cost x desired profit margin) + cost. Dividing the percentage by 100 converts the desired profit margin to a decimal.
Ben owns a shoe store. He has a new line of limited-edition running shoes that he will be selling in his store soon. The cost of manufacturing the shoes was $18 per pair, and he wants to make a 20% profit on each pair he sells. What is Ben’s selling price?
(a)
The formula to determine the selling price is: (cost x desired profit margin) + cost. Dividing the percentage by 100 converts the desired profit margin to a decimal.
Adam owns a restaurant. A new dish is being added to the restaurant’s menu. The cost of making the dish is $6.75, and he wants to make a 33% profit on each dish he sells. What is Adam’s selling price?
(a)
The formula to determine the selling price is: (cost x desired profit margin) + cost. Dividing the percentage by 100 converts the desired profit margin to a decimal.
Cory owns a home goods store. He is about to add a new line of candles to his store. The cost of manufacturing the candles is $8.46 per candle, and he wants to make a 52% profit on each candle. What is Cory’s selling price?
(a)
Subtracting liabilities from assets calculates equity. A company’s balance sheet shows assets, liabilities, and equity.
Mallory owns an auto repair shop. She has $12,000 in cash, $8,000 in inventory, a $4,000 credit card balance, and $3,500 in long-term debt. What is Mallory’s equity?
(a)
Subtracting the cost of goods and expenses from income calculates net income.
Karen’s income last month was $5,400. Her cost of goods was $925, and her total expenses were $3,300. What was Karen’s net income?
(a)
Dividing total expenses by sales price calculates a break-even point.
Chuck owns a pizza shop. He only sells large pizzas and charges $18 per pizza. His total monthly cost is $2,600. How many pizzas does Chuck have to sell to break even each month?
(a)
What is the formula for determining a break-even point?
Break-even point = Total cost x Product or service sales price
Break-even point = Total cost / Product or service sales price
Break-even point = Total cost - Product or service sales price
Break-even point = Total cost + Product or service sales price
What is the formula for determining net income?
Net income = Income - Cost of goods sold x Expenses
Net income = Income + Cost of goods sold + Expenses
Net income = Income x Cost of goods sold x Expenses
Net income = Income - Cost of goods sold - Expenses
What is the formula for determining selling prices?
Selling price = (Cost x Desired profit margin) + Cost
Selling price = (Cost x Desired profit margin) - Cost
Selling price = (Cost - Desired profit margin) / Cost
Selling price = (Cost / Desired profit margin) + Cost
What is the formula for determining equity?
Equity = Assets x Liabilities
Equity = Assets - Liabilities
Equity = Liabilities / Assets
Equity = Liabilities - Assets
Variable costs (a) depending on production. [Fixed and Variable Costs]
A (a) is used to identify the amount of cash a company is spending every month. [Analyze a Company’s Cash Flow]
A (a) is used to make projections about a company’s future performance. [Analyze a Company’s Cash Flow]
Return on investment (ROI) is used by businesses to show them how much their (a) is earning. [ROI]
What is the formula for determining a return on investment (ROI)?
ROI = (Net profit + Cost of investment) x 100
ROI = (Net profit / Cost of investment) x 100
ROI = (Net profit / Cost of investment) / 100
ROI = (Net profit - Cost of investment) x 100
Fixed costs change depending on the volume of production
True
False
Subtracting the cost of investment from the value of investment calculates net profit. Dividing net profit by the cost of investment, then multiplying the result by 100 calculates ROI.
Tina sells cookies. What is Tina’s ROI?
a. Production cost: $7.65/box of cookies
b. Selling price: $12/boxes of cookies
(a)
Subtracting the cost of investment from the value of investment calculates net profit. Dividing net profit by the cost of investment, then multiplying the result by 100 calculates ROI.
Chris provides tree trimming services. What is Chris’s ROI?
a. Production cost: $48.89/tree trim
b. Selling price: $65/tree trim
(a)
