Free Printable MEC Review

1.

Characteristics of successful entrepreneurs include:

a)

unlikely to volunteer to work with others

b)

insists on formal job titles

c)

insists on doing only one thing at a time

d)

ability to work both as a team leader and a team member

2.

Characteristics of successful entrepreneurs include:

a)

dependent on others

b)

unfriendly

c)

independent

d)

hostile

3.

Entrepreneurs exhibit the following behaviors:

a)

mellow

b)

easily discouraged

c)

seeks permission before proceeding

d)

persistent

4.

Madison has a problem - not enough business. A good location. A great reputation with current loyal customers. Just not enough people walking in the door. Madison can spend $10,000 on a television campaign, but what if potential customers are not watching television when the commercials air? Instead Madison believes some sort of networking effort might be more effective, opening up the store to friends of friends during a catered party with door prizes. The entire event - good food and soft drinks, plus door prizes and gift cards - will cost less than$ 3,500. Madison trains the small team that works at the store on how to tell people about what they do in 20 seconds - an elevator pitch. Now everyone needs to get excited about making the event a success. The type of small business behaviors Madison and the team will need to exhibit can best be described as:

a)

computer literacy and negotiating skills

b)

finding a guarantor and completing a credit application

c)

networking and comfort engaging with strangers

d)

attention to detail and punctuality (being on time)

5.

Fallah knew there just was not enough money to keep the business healthy without reducing costs dramatically. But every single employee was valuable - they were all long-time employees, almost like family - so layoffs were not the right answer. Instead Fallah called a meeting after hours with the employees, giving everyone a good meal and then letting them know how much they had to reduce costs. What was amazing is how well the employees responded. They told Fallah: Sit down, we know what were doing, and promptly came up with four suggestions that would cut costs more than the $4,000 per month Fallah thought was absolutely necessary. Amazing. The type of small business behaviors Fallah and the team were exhibiting could best be described as:

a)

comfort engaging with strangers

b)

effective communication skills

c)

problem solving, with team members serving as team leaders as necessary

d)

computer literacy and negotiating skills

6.

Which of the following is an essential skill for a successful entrepreneur and small business leader?

a)

insistence on working only with familiar people

b)

focus on keeping things the way they've always been done

c)

tendency to reject advice from others

d)

ability to reach out to strangers who might be helpful

7.

Which of the following best defines grit?

a)

giving up on your dreams

b)

following your dreams when things get tough

c)

not having dreams, being content with things the way they are

d)

lacking the energy or ability to work hard

8.

Which of the following best defines self-discipline?

a)

persistence and resolve

b)

panic in the face of trouble

c)

indifference

d)

ability to do what you're told

9.

Which of the following best defines self-motivation?

a)

needing others to get you enthusiastic about work

b)

needing others to help you show up for work on time

c)

establishing goals and working hard to achieve them

d)

going with the flow

10.

Successful entrepreneurs can be described as:

a)

unwilling to engage with unfamiliar adults

b)

unwilling to learn something new

c)

comfortable talking with unfamiliar adults

d)

comfortable with a routine

11.

Which is an entrepreneur?

a)

a manager of the largest retail store in town

b)

the retail store clerk

c)

an adult who washed cars as a teenager and now has a mobile car detailing van

d)

the adult who started as butcher and now runs the meat department at the large grocery store

12.

Which is an entrepreneur?

a)

the truck dealership salesperson

b)

the truck dealership receptionist

c)

the truck dealership salesperson who customizes trucks after regular work hours

d)

the truck dealership general manager

13.

Which of the following is a school expectation:

a)

peak efforts during performance assessments (like tests)

b)

steady, consistent, strong effort every day, without exception

c)

no paid vacation

d)

on your birthday you get to take the day off

14.

Which of the following is a work expectation:

a)

employees provide a consistent level of effort and effectiveness every day

b)

employees try harder on days leading up to vacations

c)

employees occasionally are late without any consequences

d)

employees can complete difficult math calculations in their head

15.

Is the workplace expectation for vacation time different than the high school expectation?

a)

No, the expectations for vacation time are the same at work and at high school

b)

Yes, there is more vacation time at work than during high school

c)

Yes, there is more vacation time during high school than at work

d)

Unclear

16.

The state government agency that provides start-up companies with guidance on which paperwork to complete is:

a)

Louisiana Economic Development

b)

Secretary of State

c)

Workforce Commission

d)

Internal Revenue Service

17.

Which of the following is a federal government agency:

a)

Louisiana Economic Development

b)

Board of Cosmetology

c)

Internal Revenue Service (IRS)

d)

Barbering Board

18.

The geauxBIZ portal is:

a)

a website companies use to pay taxes

b)

a website to submit wage forms to the Louisiana Workforce Commission

c)

a website to pay taxes to Louisiana Revenue

d)

a website to register a company with the Louisiana Secretary of State

19.

Which of the following is a state government agency:

a)

Louisiana Secretary of State

b)

Department of Defense

c)

Small Business Administration (SBA)

d)

Occupational Safety and Health Administration (OSHA)

20.

Bank loan applications require:

a)

only general information about a company and its owners

b)

less information than online credit applications

c)

no personal information from the company's owners

d)

lots of highly detailed information about a company and its owners

21.

Compared to a bank loan, an online loan is:

a)

only for adults above a certain age

b)

less expensive (lower interest rate)

c)

more expensive (higher interest rate)

d)

approximately equal in terms of interest rates

22.

Compared to an online loan, a bank loan is:

a)

more expensive (higher interest rate)

b)

easier to obtain (the customer discloses less information)

c)

not available to small businesses

d)

less expensive (lower interest rate)

23.

Which factors reduce the cost of borrowing from a bank?

a)

fixed assets

b)

a high credit score

c)

lots of credit cards

d)

lots of notes payable

24.

The financial term "maturity" refers to:

a)

the willingness of a bank to loan funds to older adults

b)

the date a loan is due to be completely paid off

c)

the total amount borrowed

d)

a debt or a loan a company must repay

25.

The financial term "credit-worthy" refers to:

a)

the inability of a company to repay its debts

b)

the ability of a company to generate more revenues

c)

the financial assets necessary for a company to open a new location

d)

the financial assets or past payment record that demonstrates a company can borrow money

26.

The financial term "liability" refers to:

a)

an amount owed by a company to a third party

b)

a company's cash on hand it can use to pay its bills

c)

any asset or "thing of value"

d)

property and/or the building(s) on it

27.

Loan applications require:

a)

applicants to answer only certain questions

b)

applicants to provide information that may not be truthful

c)

applicants to provide only information they think helps their case

d)

complete and truthful information as requested by the credit application

28.

Online loan applications require:

a)

applicants to have at least six years in business before applying

b)

applicants to have certain levels of profitability before applying

c)

applicants to have a loan guarantor

d)

applicants to answer all questions completely and truthfully

29.

Which statement is true?

a)

online credit is lower cost (lower interest rate) than bank credit

b)

online loans are harder to obtain than bank loans

c)

small businesses can obtain bank credit without owners disclosing personal information

d)

bank credit is less expensive than online credit but more difficult to obtain

30.

Derone wants to start a car detailing business. The local golf club lets Derone wash cars for members golfing on the weekend for a fixed payment of $100 per week. During the week and some evenings, Derone travels to the houses of regular customers to wash their cars. Derone’s truck needs new tires and some new spray nozzles that together will cost$ 300. What type of credit might be the best for Derone to use to purchase this new equipment?

a)

bank credit, since the interest rate will be lower

b)

neither - small businesses should never seek credit

c)

online credit, since the application is easier than a bank loan application and this small loan will only be outstanding a short time

d)

neither - if Derone doesn’t have the $300 on hand then Derone should not invest in the new tires and nozzles

31.

Every holiday season Parker rents a small cart at the local mall to sell handcrafted Christmas tree ornaments. Parker makes a few of the ornaments, and purchases many more from local craftspeople. This year money is tight so Parker is going to have to borrow the $1,500 the mall charges ($ 500 in rent for November, $500 rent for December through January 4, and a$ 500 security deposit that is typically returned by January 15). In past years the cart has generated $10,000 in business, so Parker is very confident that the cart will generate enough profits to pay back the$ 1,500 loan within 30 days (that’s before Christmas). What type of financing might make the most sense in this situation for Parker?

a)

online credit, since the application is easier than a bank loan application and the loan will only be outstanding a short time

b)

bank credit - the application will take a lot more time to complete and the bank may require a guarantor who might charge Parker for providing a guarantee, but the interest rate will be lower.

c)

neither - small businesses should never seek credit

d)

neither - if Parker doesn’t have the $1,500 on hand then Parker should skip renting the cart this holiday season

32.

An account receivable is:

a)

money owed by the company to a supplier when the company purchases using credit

b)

shareholders equity plus liabilities

c)

the total amount of bonuses paid to top management

d)

money owed to the company by a customer when the customer makes a purchase on credit

33.

Advertising can be important for a new business because it:

a)

helps employees understand established work procedures and company operating hours

b)

is free

c)

helps establish a unique company identity and value proposition that might attract new customers

d)

is required by the Louisiana Secretary of State before a company can hire new employees

34.

An asset is:

a)

a dividend paid to shareholders

b)

something of value, either a physical asset or intellectual property

c)

a bonus paid to top management

d)

a debt payment made to a bank

35.

An income statement indicates:

a)

the amount a company owes to the bank

b)

the amount of profits a company has earned

c)

the number of employees hired by the company

d)

the number and value of company assets

36.

A breakeven analysis can determine:

a)

how many units a company must sell to justify the purchase of a new piece of equipment

b)

which outside executives the new company will hire for open positions

c)

the tax rate the company will pay in the next fiscal year

d)

how much money the company owes to its debtholders

37.

To determine whether a business opportunity is realistic, the entrepreneur must:

a)

determine the hours the company will operate

b)

understand how the company will be differentiated, i.e., what about the company will enable it to beat the competition

c)

develop a comprehensive employee manual listing work rules, work hours and benefits plans

d)

focus only on the interest rates charged by online credit providers

38.

Total revenues minus total costs equals:

a)

company assets per unit

b)

company debt per unit

c)

contribution margin

d)

total company debt

39.

When launching a business, which is NOT a critical consideration?

a)

projections of breakeven revenue levels

b)

determination of the amount of equity the company needs to raise from shareholders

c)

how to motivate target customers to purchase the company’s goods and services

d)

what the company break room will look like, and how employees will spend their break time

40.

An employee:

a)

works for an enterprise

b)

is the sole owner of an enterprise

c)

must be a shareholder of an enterprise

d)

must sign all credit applications for the enterprise

41.

Equity is:

a)

debt provided by a bank or online credit company

b)

payments made by customers to the company for units sold

c)

bonuses paid to top management

d)

funds invested in a company by shareholders

42.

An example of a variable cost is:

a)

interest payments on a bank loan

b)

wages paid to hourly workers

c)

proceeds from a new loan

d)

investments from new shareholders

43.

Net income is:

a)

revenues minus all costs, including debt payments and taxes

b)

liabilities minus assets

c)

assets minus liabilities

d)

cost per unit minus debt payment per unit

44.

A payment made to an insurance company to cover the costs of an insurance policy is called:

a)

account

b)

premium

c)

dividend

d)

equity

45.

Businesses should always set their prices:

a)

so that they are fixed throughout the year

b)

so that they are competitive and greater than the company's costs per unit

c)

so that they are less than the company's costs per unit

d)

so that they do not vary and are exactly equal to the company's costs per unit

46.

The profit margin on an item the company sells can best be defined as:

a)

labor costs minus total debt payments

b)

price of the unit minus cost of goods sold per unit

c)

the price of the unit

d)

the cost of goods sold per unit

47.

Revenue per unit minus cost of goods sold per unit equals:

a)

tax rate per unit

b)

company debt payments per unit

c)

gross profit (or loss) per unit

d)

total company revenues

48.

What is a conflict of interest?

a)

a situation where an individual might take an action to his/her advantage that would be to the disadvantage of a business or person who has trusted him/her

b)

a situation where two businesspeople get in an argument

c)

a situation where an individual promises to keep information secret

d)

a situation where one business invests in another

49.

An example of intellectual property is:

a)

a vehicle purchased with a loan

b)

a valuable invention with a patent

c)

an office building with a mortgage

d)

an employee with a contract

50.

What is corporate social responsibility?

a)

obeying all federal and state regulations

b)

obeying local government regulations

c)

investing to maximize the profits of the company

d)

companies taking actions that improve their community even if they do not increase profits

MEC Review

Total questions: 50

Worksheet time: 25mins

Similar Resources on Wayground