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WorksheetsMicro Enterprise Regional Exam Prep
Total questions: 68
Worksheet time: 1hrs 8mins
Name
Class
Date
1.
Characteristics of successful entrepreneurs include:
a)
grit
b)
submission
c)
self-importance
d)
short attention span
2.
Which is an entrepreneur?
a)
an adult who started cutting grass as a pre-teen and now runs a gardening business with a sibling
b)
a manager of the biggest chain grocery store in town
c)
the bank CEO who started out as a teller 30 years ago
d)
the convenience store clerk
3.
Characteristics of successful entrepreneurs include:
a)
optimism
b)
pessimism
c)
territorial
d)
ineffective
4.
Entrepreneurial problem solvers exhibit the following behaviors:
a)
comfort performing under pressure
b)
ability to forget important details
c)
loyalty to standard practices
d)
comfort conceding defeat
5.
Self-discipline can best be defined as:
a)
persistence
b)
perspective
c)
prediction
d)
prescription
6.
Characteristics of successful entrepreneurs include:
a)
independence
b)
interpretation
c)
indifference
d)
ingratitude
7.
Which of the following is an essential skill for a successful entrepreneur and small business leader?
a)
ability to interact in a friendly and effective way with people you don’t know
b)
ability to complete complicated mathematical functions in your head
c)
ability to use hand tools
d)
ability to intimidate others
8.
Which of the following best defines self-motivation?
a)
ability to start and finish a task without giving up despite obstacles that might arise
b)
ability to ignore directions and do things your way
c)
ability to follow directions effectively to arrive at a desired result
d)
ability to develop a plan to get something done
9.
Which is an entrepreneur?
a)
a woman who designs and makes her own line of clothing and sells them to her friends
b)
a corporate vice president of human relations
c)
a parking lot attendant
d)
a state government official
10.
Successful entrepreneurs can be described as:
a)
change agents
b)
unfriendly
c)
reactive
d)
passive
11.
Which is an entrepreneur?
a)
an IT tech who works as a small business consultant after hours
b)
an IT tech who works for the parish
c)
an IT tech who works for the Secretary of State
d)
an IT tech who works 90 hours a week
12.
Which best describes self-discipline?
a)
working late and showing up for work on time the next day
b)
quitting early
c)
working late and taking the next day off
d)
leaving work on schedule regardless of circumstances
13.
Robin has been working throughout the week to get ready for the store opening on Friday. The tiles for the entryway weren’t delivered on time, but Robin took the company van and picked up the tiles at the vendor’s warehouse. When the utility didn’t 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:
a)
determination
b)
independence
c)
optimism
d)
computer literacy
14.
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:
a)
self-discipline
b)
financial literacy
c)
comfort engaging with strangers
d)
pessimism
15.
Toni is about to launch a new business. The bank originally turned down her application for a $20,000 loan, but she found a loan guarantor and received a $15,000 loan that still enabled her to purchase most of her equipment. When the equipment distributor didn’t have one piece of equipment her salon needed, Toni found used equipment at a $3,000 savings and drove her brother’s pick-up to go fetch the equipment. Tomorrow Toni is going to help out on the worksite because the crew is a day behind and Toni wants to open on time. The type of entrepreneurial behavior that Toni has been exhibiting can best be described as:
a)
determination
b)
computer literacy
c)
comfort engaging with team members
d)
pessimism
16.
Which of the following is a school expectation:
a)
two months of summer vacation
b)
perfect attendance or expulsion / termination
c)
driving and texting results in expulsion / termination
d)
two weeks of vacation
17.
Which of the following is a work expectation:
a)
serious consequences for failures in self-discipline
b)
unsafe behaviors are addressed tolerantly
c)
OK not to worry about a budget
d)
coming into contact with strangers during a typical day is unusual
18.
Is the workplace expectation for being on-time different than the high school expectation?
a)
Yes – being late for work carries greater penalties than being late at school
b)
Yes – being late at school carries greater penalties than being late for work
c)
No – the expectations for being on-time are the same at work and at high school
d)
Unclear
19.
How is the workplace expectation for vacation time different than the high school expectation?
a)
students take more vacation than employees
b)
both expect to take two months off during the summer
c)
employees take more vacation than students
d)
employees are penalized for taking vacation they’ve earned
20.
Which of the following is a work expectation?
a)
being on time every day without exception is mandatory
b)
self-discipline is optional
c)
repeated absences result in warning
d)
employees can make up work after hours if the arrive late
21.
One advantage of establishing a new company as some type of a corporation is:
a)
ability to shield owners from liabilities of or judgments against the company
b)
reduces paperwork the owners have to complete
c)
guarantees the company will be profitable
d)
guarantees higher revenues
22.
The government agency that enables companies to register to do business in the state of Louisiana is:
a)
Secretary of State
b)
Department of Commercial Licenses
c)
Workforce Commission
d)
Internal Revenue Service
23.
Which of the following is a state government agency:
a)
Louisiana Economic Development (LED)
b)
Secretary of State Militia (SSM)
c)
Department of Defense (DoD)
d)
Small Business Administration (SBA)
24.
What is a “registered agent?”
a)
an individual responsible for receiving legal documents
b)
a government official
c)
an advertising agency representative
d)
an officer of the court
25.
The geauxBIZ portal is:
a)
a Louisiana Secretary of State website entrepreneurs use to register a company
b)
a Louisiana Revenue website businesses use to pay taxes
c)
a Louisiana Workforce Commission small business owners use to hire employees
d)
a joint state and federal website for filing IRS forms
26.
The government agency that helps start-ups determine which paperwork they must complete is:
a)
Louisiana Secretary of State through the geauxBIZ portal
b)
Louisiana Economic Development through FastStart
c)
Louisiana Workforce Commission through its Start Jobs system
d)
the Internal Revenue Service
27.
Which is a federal government agency?
a)
Small Business Administration (SBA)
b)
Louisiana Department of Revenue (LDR)
c)
Small Claims Court
d)
Chamber of Commerce
28.
The financial term liability refers to:
a)
a debt or a loan a company must repay
b)
a weakness in the company’s financial structure
c)
the ability of the company to raise funds
d)
the ability of the company to secure loans
29.
Compared to a bank loan, an online loan is:
a)
much easier to obtain
b)
less expensive (lower interest rate)
c)
only for companies in certain industries
d)
approximately equal in terms of interest rates
30.
Which factors reduce the cost of borrowing from a bank?
a)
a guarantor
b)
an outstanding mortgage
c)
other outstanding loans
d)
available phantom assets
31.
The maturity of a loan is:
a)
the timeframe by which the borrower must repay the loan
b)
how long it takes to receive loan approval from the bank
c)
the interest rate on the loan
d)
the balance of an outstanding loan
32.
A guarantor:
a)
is a credit-worthy individual or business responsible for repaying a loan if the debtholder cannot
b)
must be a business or individual located in-state
c)
assumes no legal responsibilities
d)
has limited liquidity
33.
Bank loan applications:
a)
can be intimidating, complex and detailed
b)
are easy to complete
c)
are short
d)
can only be completed in the presence of a banker during regular work hours
34.
Online loans are:
a)
easier to obtain but more expensive than bank loans
b)
only available to companies in a limited number of industries
c)
easier to obtain and less expensive than bank loans
d)
easier to obtain and about the same cost as a bank loan
35.
Loan applications require:
a)
applicants to provide personal and business information that must be truthful
b)
applicants to offer a guarantee to take whatever loan terms are offered
c)
completion all in one sitting
d)
applicants to pay for the right to submit an application
36.
One critical difference between bank loans and online loans is:
a)
the amount of information the applicant must provide
b)
applicants only have to be completely truthful on a bank loan application
c)
none – they are pretty much the same
d)
the amount of money the applicant can request
37.
How does a guarantor help an entrepreneur trying to launch a new business?
a)
co-sign for a loan, helping the entrepreneur qualify for bank credit
b)
co-author a business plan
c)
co-develop social media postings
d)
cooperate in developing a job descriptions
38.
The term “maturity” refers to:
a)
the date when the final loan payment will be made and the loan balance will be zero
b)
an older business owner
c)
the number of years described in a business plan
d)
the emotional intelligence of a business owner
39.
Bank debt versus online credit:
a)
bank debt is better for long-term investments
b)
bank debt is more expensive for business owners
c)
bank debt is easier to obtain for business owners
d)
bank debt is pretty much the same as online credit
40.
Alex is having a hard time securing a $30,000 loan for the new business. The bank is very impressed with Alex’s business plan but unfortunately Alex’s credit score is low. With a low credit score the bank won’t loan Alex the money necessary to get the new business launched. Alex has qualified for a $50,000 online loan but the terms are very expensive and would make it hard for the company to become profitable. One next step Alex might consider is:
a)
finding a mentor / guarantor who will help secure the $30,000 loan
b)
borrow only $30,000 in an online loan
c)
rewriting the business plan
d)
filing a new business name with the Secretary of State’s geauxBIZ portal
41.
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?
a)
bank credit
b)
online credit
c)
credit card credit
d)
none – the numbers indicate this will not be a profitable expansion
42.
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?
a)
online credit
b)
mortgage
c)
bank credit
d)
none – the numbers indicate this will not be a profitable business decision
43.
To determine whether a business opportunity is realistic, the entrepreneur must:
a)
determine how much capital is required to launch the business
b)
determine the corporate officers of the competitors
c)
determine the color scheme of the company’s proposed logo
d)
determine how the company will advertise
44.
The fixed costs of a business:
a)
are the same no matter how many customers the business serves
b)
must be different each month
c)
include the cost of production materials
d)
must exceed variable costs
45.
A business plan has the following purpose:
a)
describes in detail how the company’s product or service will be differentiated versus its competition
b)
serves as collateral that a company can take to a bank to secure guaranteed loans
c)
serves as a required filing with the Internal Revenue Service
d)
describes in detail how the company will set up its headquarters office
46.
Businesses should always set their prices:
a)
to reflect the value of their goods or services, not just their costs
b)
lower than their competitors’ prices
c)
low enough so that revenues are below variable expenses
d)
higher than their competitors’ prices
47.
Pricing strategies may include:
a)
maximizing revenues for different products using different price points
b)
maximizing debt through effective loan applications
c)
maximizing units sold through effective advertising themes
d)
completing audited financial statements
48.
Advertising can be important for a new business because it:
a)
communicates a differentiated message to your target customers
b)
is a free form of promotion
c)
allows the new business to set up a network of distributors
d)
is a low-cost method to increase revenues
49.
An employee:
a)
works for someone else
b)
owns a business venture
c)
takes primary financial responsibility for the risk of the business venture
d)
is responsible for contributing equity to the business
50.
When launching a business, which is NOT a critical consideration?
a)
what type of bank account the company will use
b)
how the new company’s product or service is different from or better than competitor products or services
c)
identifying team members with important skills the new business can hire
d)
physical or virtual location
51.
A company balance sheet is the single report that best indicates:
a)
company assets and liabilities
b)
company quarterly cash flow
c)
company financial projections
d)
monthly debt payments and outstanding debt obligations
52.
An example of a fixed cost is:
a)
monthly rent
b)
cost of goods sold
c)
hourly labor
d)
office supplies
53.
An example of a variable cost is:
a)
cost of goods sold
b)
monthly rent
c)
overhead salaries
d)
the salary of the Finance Vice President
54.
A breakeven analysis can determine:
a)
how many units the company will need to sell to pay for a new piece of equipment
b)
the identity of future loan guarantors
c)
when a company must pay its bills to avoid bankruptcy
d)
how many customers a new business will need to secure to meet its revenue projections
55.
Revenue per unit minus cost of goods sold equals:
a)
contribution margin
b)
unit breakeven
c)
income pro forma
d)
debt service
56.
Total revenues minus total costs equals:
a)
profits before owner compensation and taxes
b)
contribution margin
c)
unit breakeven
d)
future value profits
57.
The profit margin on an item a company sells can best be defined as:
a)
price of the unit minus unit cost of goods sold
b)
total debt minus annual debt payment
c)
variable cost per unit
d)
total company revenue minus total company costs
58.
A payment made to an insurance company to cover the costs of an insurance policy is called:
a)
a premium
b)
a policy
c)
a dividend
d)
a beneficiary
59.
The fixed cost of a business:
a)
remain the same every month
b)
can vary from month to month
c)
are filed with the IRS
d)
must exceed monthly revenues
60.
A shareholder:
a)
is a legal owner of part of the business
b)
must be an employee of the business
c)
may not loan money to a company
d)
must live in the same country as the business
61.
Pricing strategies should consider:
a)
how much competition the business faces
b)
the size of a company’s headquarters facility
c)
how often the company will be filing tax returns
d)
the complexity of the bank credit application
62.
An example of a variable cost is:
a)
hourly wages paid to employees
b)
monthly rent
c)
monthly salary to the company president
d)
debt payments to the bank
63.
A company balance sheet is the single report that best indicates:
a)
the assets or “things of value” the company owns and the liabilities or debt it owes
b)
the annual profitability of the company
c)
the monthly profitability of the company
d)
what interest rate the company can afford to pay on its loans
64.
Corporate social responsibility:
a)
are voluntary steps beyond a company’s financial self-interest that reflect what business leaders believe their companies can or should accomplish
b)
is the legal requirement that companies make charitable donations before paying dividends
c)
is a government program required for all companies
d)
is a form that must be completed each year and filed with the Louisiana Secretary of State
65.
A conflict of interest is:
a)
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
b)
when business partners have an honest disagreement about their next advertising campaign
c)
when an accountant disagrees with the IRS on how much a company owes in income taxes
d)
naturally occurring whenever there is competition between small businesses
66.
An example of intellectual property is:
a)
a patent on an invention
b)
a truck
c)
stock
d)
electronic bank accounts
67.
An example of intellectual property is:
a)
a company logo
b)
a tax return
c)
a geauxBIZ downloaded list of state and federal agencies
d)
a company address
68.
Which is a conflict of interest?
a)
when the banker approving a loan to a company is also a shareholder
b)
when two employees get into a shoving match
c)
when two managers get into a fight
d)
when two suppliers compete to win the business of a start-up
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