Reference no: EM133461770
Question
1. The standards and rules in businesses that help someone decide right from wrong are called ________.
A) corporate governance
B) laws
C) ethics
D) morals
2. What is the difference between strategic planning and operational planning?
A) Strategic plans are for one year or less and have very specific objectives, while operational plans are more vague and long-term.
B) Strategic planning covers the short-term day-to-day workings of a business, while operational planning sets out long-term goals.
C) Strategic planning sets out strategies for the business to achieve long-term growth and other goals, while operational planning covers the day-to-day operations of the business.
D) Strategic planning is reserved for middle management in large companies.
3. If $5,000 is borrowed at 9% interest to be paid back over one year, the interest on the loan is ________.
A) $450
B) $590
C) $500
D) None of the above.
4. If you are a small business owner looking for a loan, a bank will expect you to ________.
A) find equity investors to spread the bank's risk
B) incorporate to maximize cash flow
C) personally guarantee that you will be responsible for the business loan
D) incorporate to avoid taxation
5. Why are entrepreneurs not always the best managers for their businesses?
A) Managers are better at coming up with fresh ideas for new businesses than entrepreneurs are.
B) Entrepreneurs have a difficult time motivating employees.
C) Entrepreneurs tend to be creative types who get bored with the day-to-day details of running a business.
D) They tend to have short attention spans.
6. Lost sales and goodwill are potentially significant costs that may arise from ________.
A) too little inventory
B) too much inventory
C) Both A and B
D) poor customer service with inventory
7. The statistical methods, within Six Sigma, are designed to eliminate defects to a failure rate of ________ defects per one million opportunities, or a 99.9997% success rate.
A) 3.4
B) 34
C) 0.34
D) .344
8. Some federal agencies provide grants, loans, and/or loan guarantees for businesses that meet specific criteria. One of these is the U.S. ________.
A) Interstate Commerce Commission (ICC)
B) Small Business Administration (SBA)
C) Federal Land Bank (FLB)
D) Agricultural Extension Agency (AEA)
9. Describe the parts of an income statement.
10. Suppliers may be found through ________.
A) newspapers and magazines
B) trade shows, conferences, and catalogs
C) All of the above.
D) None of the above.
11. Ideally, you want to have a positive "double" bottom line. This means ________.
A) you are achieving twice the revenues you expected
B) you have twice the number of customers that you expected
C) you have twice the profit you expected
D) your profit allows you to stay in business and achieve your mission
12. If you invest $1,525,000 in a business and earn a return of $775,000, what is your ROI?
A) 51%
B) 42%
C) 45%
D) 48%
13. The last line of an income statement shows a business's ________.
A) gross profit or gross loss
B) profit or loss
C) net profit or net loss
D) gross margin
14. A share of stock represents ________ in a company.
A) interest
B) a right to discounts on products
C) a concept like insurance
D) ownership
15. The department that hires, trains, and develops company employees is called ________.
A) employment office
B) hiring and firing
C) human resources
D) personnel
16. If Jacques invests $20,000 at 10% interest for 3 years, what will the future value of the money be?
A) $26,000.00
B) $20,606.02
C) $23,606.02
D) $26,620.00
17. ________ = cash on hand + cash receipts - cash disbursement.
A) Profit
B) Revenue
C) Cash flow
D) Gross profit
18. When a business grows too big for the entrepreneur to run it alone, (s)he should consider ________.
A) franchising the business
B) taking management classes to become a better manager
C) slowing down marketing efforts to bring the business's growth back under control
D) raising capital and using it to hire managers
(Part I) There are many sources of capital to start a business. List 5 sources (Part II) Explain how financing with equity is different from financing with debt?