WorksheetsABT 49 Final Exam, Spring 2023
Total questions: 69
Worksheet time: 35mins
Name
Class
Date
1.
First and last name
4 lines
2.
Which company legal structure has the greatest continuity during changes in ownership?
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Limited Liability Company
e)
All of the above
3.
Which company legal structure is considered a hybrid of two other structures?
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Limited Liability Company
e)
All of the above
4.
Which company legal structure is most likely for a small startup company with few assets and little cashflow to start?
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Limited Liability Company
e)
All of the above.
5.
Which company legal structure generally has the most “rules” to follow and requires the greatest amount of paperwork?
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Limited Liability Company
e)
All of the above
6.
Which company legal structure exposes the owners to the greatest liability?
a)
Sole proprietorship
b)
Partnership
c)
Corporation
d)
Limited Liability Company
e)
All of the above.
7.
Which of the following is NOT a typical business strategy?
a)
Part Time (Minimum investment, minimum return)
b)
Specialty product or service
c)
High volume, high cost/margin
d)
Low volume, high cost/margin
e)
High volume, low cost/margin
8.
What is the primary reason for the cyclical production of lettuce in Salinas, Huron, Yuma and back?
a)
Weather
b)
Labor availability
c)
Disease and pest control
d)
Consumer demand
e)
Land availability
9.
Which of the following are true about business lines of credit?
a)
They should have large balances to leverage the bank’s money for business needs.
b)
They are intended to be used for capital improvements or purchases
c)
They are NOT intended to overcome the seasonality of many businesses.
d)
They are intended for cashflow purposes only!
e)
All of the above.
10.
When seeking a grant from a government agency or non-profit foundation, you should describe in detail how your proposal, if funded, will _________________.
a)
benefit the granting agency by helping it meet its goals.
b)
benefit your community.
c)
help your business meet its goals.
d)
help the economy.
e)
decrease unemployment
11.
When choosing a business loan, the most important consideration is ______________.
a)
the lowest interest rate
b)
the shortest term (to pay it off as fast as possible
c)
the longest term (to keep the monthly payment as low as possible)
d)
the highest principle amount you can borrow
e)
matching the term to the useful life of the asset
12.
From the perspective of a grower, a farmers market is primarily an example of a:
a)
supplier
b)
service provider
c)
broker or dealer
d)
wholesale food service
e)
retailer
13.
From the perspective of a grower, Verizon Wireless is an example of a ________
a)
supplier
b)
grower and/or shipper
c)
broker or dealer
d)
wholesale food service
e)
retailer
14.
From the perspective of the agriculture industry, a school cafeteria is an example of a _____________
a)
supplier
b)
grower and/or shipper
c)
broker or dealer
d)
wholesale food service
e)
retail food service
15.
From the perspective of the agriculture industry, Sysco is an example
of a _____________.
a)
supplier
b)
grower and/or shipper
c)
broker or dealer
d)
wholesale food service
e)
retail food service
16.
From the perspective of a grower, Seminis Vegetable Seeds is an example of a _____________. (They research, develop and grow seeds for the farmers.)
a)
supplier
b)
grower and/or shipper
c)
broker or dealer
d)
wholesale food service
e)
retail food service
17.
Which of the following would NOT be considered an agricultural business?
a)
Turf grass production
b)
Fishing
c)
Mushroom production
d)
Orchid production
e)
Software engineer
18.
A business plan is ___________________________.
a)
a “living document” that should be updated regularly—at least annually.
b)
a collection of several documents that answer the “who, what when, where, why and how” of your business.
c)
supported or justified by the financial documents of the business
d)
should include market data for the product(s) or service(s) that your business offers
e)
All of the above
19.
The Cost of Goods Sold (COGS) is part of the _____________________.
a)
Personal Financial Statement
b)
Balance Sheet
c)
Income Statement
d)
Cashflow Statement
e)
None of the above.
20.
The document that is summarized by the basic accounting equation is the __________
a)
Personal Financial Statement
b)
Balance Sheet
c)
Income Statement
d)
Cashflow Statement
e)
Option 5
21.
The document that is most useful when estimating the appropriate size for a business line of credit is the _____________________.
a)
Personal Financial Statement
b)
Balance Sheet
c)
Income Statement
d)
Cashflow Statement
22.
A _________________ is a record of month-by-month financial transactions
a)
Personal Financial Statement
b)
Balance Sheet
c)
Income Statement
d)
Cashflow Statement
23.
Which of the following would be considered part of a company’s assets?
a)
A/P
b)
A/R
c)
Mortgage on the company warehouse
24.
A _________________ is generally required for businesses that have little or no assets.
a)
Personal Financial Statement
b)
Balance Sheet
c)
Income Statement
d)
Cashflow Statement
25.
Gross profit is _______________________________.
a)
Gross sales (less returns and allowances) minus net sales
b)
Gross sales (less returns and allowances) minus COGS
c)
Gross sales (less returns and allowances) minus expenses
d)
Gross sales (less returns and allowances) minus losses
e)
Gross sales (less returns and allowances) minus net operating income
26.
When you get a business loan from a bank, the bank becomes a part owner in your business.
a)
True
b)
False
27.
Venture capitalists are a great source of money for long-term loans.
a)
True
b)
False
28.
Venture capitalists generally want to see return on their money in a few years or less.
a)
True
b)
False
29.
If you use a home equity loan to finance your business, the bank will generally require you to provide a detailed business plan.
a)
True
b)
False
30.
Banks want to see hard assets as collateral for most loans.
a)
True
b)
False
31.
Venture capitalists want to see hard assets as collateral for most loans
a)
True
b)
False
32.
The best part about obtaining a business loan from a family member or a friend is that you don’t need to pay it back as fast.
a)
True
b)
False
33.
Regardless of the type of loan you plan to obtain, a business plan should be considered an essential document, and should always be kept up to date
a)
True
b)
False
34.
The best part about Small Business Administration (SBA) loans is that they are often easier to obtain when compared to bank loans.
a)
True
b)
False
35.
SBA loans often have the best interest rates with the least amount of paperwork.
a)
True
b)
False
36.
SBA loans are offered and administered by banks, but backed by government
a)
True
b)
False
37.
Grants may be difficult to obtain, but they do not need to be paid back. FREE MONEY!
a)
True
b)
False
38.
Grants are given to individuals, businesses or other organizations to help the granting agency achieve its own stated goals.
a)
True
b)
False
39.
When obtaining a business loan, the primary consideration is to find a loan that will be paid off as quickly as possible.
a)
True
b)
False
40.
The primary purpose of a company going public is to raise capital
a)
True
b)
False
41.
One advantage of leasing a vehicle is that the expense may be depreciated over time.
a)
True
b)
False
42.
Prevention is better than detection
a)
True
b)
False
43.
Before implementing LEAN, many manufacturing processes have as much as 95% non-value-added time. A LEAN process would be closer to 50% non-value-added.
a)
True
b)
False
44.
A company’s legal liabilities are the same thing as its financial liabilities
a)
True
b)
False
45.
A Personal Financial Statement would include information about alimony and child support, but a Balance Sheet would not include this type of detail.
a)
True
b)
False
46.
An error rate at the three sigma level has less variation than an error rate at the six sigma level.
a)
True
b)
False
47.
According to the processes of CPI, improvements must be followed by standardization to make significant progress.
a)
True
b)
False
48.
Which department would be responsible for paying the debts and bills owed by your company to other companies and institutions?
a)
CR
b)
HR
c)
AR
d)
AP
49.
Which department would be responsible for hiring, benefits, and other employee issues?
a)
CR
b)
HR
c)
AR
d)
AP
50.
Which of the following is shared by ALL THREE methods of CPI we discussed in class?
a)
Customer focus
b)
Heavy reliance on statistics and data
c)
Minimizing the white spaces
d)
7 Deadly Wastes +1
51.
Which business strategy is used in a MASS PRODUCTION business?
a)
Part Time (Minimum investment, minimum return)
b)
Specialty product or service
c)
High volume, low cost/margin
d)
Low volume, low cost/margin
e)
Low volume, high cost/margin
52.
What is the focus of the LEAN method of CPI?
a)
the value-added “white spaces” are maximized
b)
the value-added “white spaces” are minimized
c)
the non-value-added “white spaces” are minimized
d)
the non-value-added “white spaces” are maximized
e)
Option 5
53.
What is a major focus of the Six Sigma method of CPI?
a)
7 Deadly Wastes +1
b)
6S
c)
Rapid Improvement Events
d)
Statistics and Data
54.
The purpose of accounting is to _________.
a)
identify, record and communicate economic events
b)
identify, record and communicate business activities
c)
identify, record and evaluate economic events
d)
identify, record and evaluate business activities
e)
Option 5
55.
Ethics are the standards of conduct by which one's actions are judged _________.
a)
as right or wrong
b)
as honest or dishonest
c)
as fair or not fair
d)
All of the above
56.
Net income will result during a time period when __________.
a)
assets exceed liabilities.
b)
assets exceed revenues.
c)
expenses exceed revenues.
d)
revenues exceed expenses.
57.
“A residual interest in the assets of the entity after deducting all its liabilities” is the definition of __________.
a)
retained earnings
b)
net operating income
c)
revenues
d)
equity
58.
The amount of net income which is left in a business after the distribution dividends or withdrawls by owner is called __________.
a)
retained earnings
b)
net operating income
c)
revenues
d)
equity
e)
expenses
59.
Generally Accepted Accounting Principles follow the assumption that accounting records should __________.
a)
record all transactions of a business
b)
record all transactions and activities of a business
c)
only record transaction data that may impact the financial health of the business
d)
only record transaction data that can be expressed in terms of money
e)
only record transaction data that involve the actual exchange of money
60.
The term “private label” refers to a product that is labeled with the customer’s name or brand on the package, and the manufacturer may not be listed on the package at all.
a)
True
b)
False
61.
Prevention is better than detection
a)
True
b)
False
62.
Write the Basic Accounting Equation. (Hint: Think Balance Sheet.)
(a)
63.
What are the “cost principle” and the “fair value principle,” and which internal company department would be interested in using these principles?
(a)
64.
Define wholesale food service. Give an example of a wholesale foodservice company.
(a)
65.
Define retailer. Give an example of a retail company.
(a)
66.
What is Continuous Process Improvement (CPI)? Describe why it is important.
(a)
67.
Name the three CPI philosophies or methods we discussed in class.
(a)
68.
Name the CPI “7 Deadly wastes + 1”
(a)
69.
Assume that you invested $100,000 in an account that earns 8% interest annually.
If the investment pays simple interest only once per year, what is the value of the account after FIVE (5) years?
(a)
100 %
