Question 1

________ will tell you how long it will take you to earn enough profit to cover your start-up investment.

Accepted Answer

A)  Payback 
B)  ROI 
C)  Return on sales 
D)  Return on assets 
A)  Payback 
B)  ROI 
C)  Return on sales 
D)  Return on assets

Question 2

Overhead is another term for ________.

Accepted Answer

A)  Seed capital 
B)  Net costs 
C)  Fixed operating costs 
D)  Management 
A)  Seed capital 
B)  Net costs 
C)  Fixed operating costs 
D)  Management

Question 3

What is the difference between cash accounting and the accrual method?

Accepted Answer

With the cash accounting method, the onl

Question 4

Business start-up cost information can be obtained from ________.

Accepted Answer

A)  Competitors 
B)  Industry data 
C)  Quotations from vendors 
D)  All of the above 
A)  Competitors 
B)  Industry data 
C)  Quotations from vendors 
D)  All of the above

Question 5

Carla sells hot coffee, cider and tea from a sidewalk cart near Wall Street in New York City. Last month she sold $4,500 worth of product to 1,000 customers. She spent $800 on buying her beverages in bulk. Her monthly costs are: Utilities = $100, Salary = $2,000, Advertising = $0, Insurance = $0, Interest = $0, Rent (cart) = $600, Depreciation = $0. Calculate Carla's average sale per customer.

Accepted Answer

A)  $5.00 
B)  $4.00 
C)  $4.50 
D)  $4.67 
A)  $5.00 
B)  $4.00 
C)  $4.50 
D)  $4.67

Question 6

The estimated time required to earn sufficient net cash flow to cover the start-up investment is called the repayment period.

Accepted Answer

A) True 
 B)False

Question 7

You should keep reserves of at least ________ and ________.

Accepted Answer

A)  6 months of fixed operating costs, one half of the start-up investment 
B)  3 months of fixed operating costs, 3/4 of the start-up investment 
C)  One year of fixed operating costs, one half the start-up investment 
D)  3 months of fixed operating costs, one half of the start-up investment 
A)  6 months of fixed operating costs, one half of the start-up investment 
B)  3 months of fixed operating costs, 3/4 of the start-up investment 
C)  One year of fixed operating costs, one half the start-up investment 
D)  3 months of fixed operating costs, one half of the start-up investment

Question 8

________ is the general rise in the price of goods and service in an economy.

Accepted Answer

A)  Inflation 
B)  Deflation 
C)  Tabulation 
D)  Fixation 
A)  Inflation 
B)  Deflation 
C)  Tabulation 
D)  Fixation

Question 9

Leasehold improvements are a start-up expense.

Accepted Answer

A) True 
 B)False

Question 10

If you sell $2,500 of product, pay COGS of $800 and other variable costs of $450, what is your contribution margin in dollars?

Accepted Answer

A)  $1,700 
B)  $2,050 
C)  $1,250 
D)  $2,450 
A)  $1,700 
B)  $2,050 
C)  $1,250 
D)  $2,450

________ will tell you how long it will take you to earn enough profit to cover your start-up investment.

Overhead is another term for ________.

What is the difference between cash accounting and the accrual method?

Business start-up cost information can be obtained from ________.

The estimated time required to earn sufficient net cash flow to cover the start-up investment is called the repayment period.

You should keep reserves of at least and .

________ is the general rise in the price of goods and service in an economy.

Leasehold improvements are a start-up expense.

If you sell $2,500 of product, pay COGS of $800 and other variable costs of $450, what is your contribution margin in dollars?

Entrepreneurs Recognize Opportunities

Franchising

Finding Opportunity in an Existing Business

The Business Plan: Road Map to Success

Creating Business From Opportunity

Exploring Your Market

Developing the Right Marketing Mix and Plan

Pricing and Credit Strategies

Integrated Marketing Communications

Marketing Globally

Smart Selling and Effective Customer Service

Using Financial Statements to Guide a Business

Cash Flow and Taxes

Financing Strategy: Debt, Equity, or Both

Addressing Legal Issues and Managing Risk

Operating for Success

Location, Facilities, and Layout

Human Resources and Management

Leadership and Ethical Practices

Franchising, Licensing, and Harvesting: Cashing in Your Brand

Filters

Exam 12: Understanding and Managing Start-Up, Fixed, and Variable Costs

________ will tell you how long it will take you to earn enough profit to cover your start-up investment.

Overhead is another term for ________.

What is the difference between cash accounting and the accrual method?

Business start-up cost information can be obtained from ________.

The estimated time required to earn sufficient net cash flow to cover the start-up investment is called the repayment period.

You should keep reserves of at least ________ and ________.

________ is the general rise in the price of goods and service in an economy.

Leasehold improvements are a start-up expense.

If you sell $2,500 of product, pay COGS of $800 and other variable costs of $450, what is your contribution margin in dollars?

Entrepreneurs Recognize Opportunities

Franchising

Finding Opportunity in an Existing Business

The Business Plan: Road Map to Success

Creating Business From Opportunity

Exploring Your Market

Developing the Right Marketing Mix and Plan

Pricing and Credit Strategies

Integrated Marketing Communications

Marketing Globally

Smart Selling and Effective Customer Service

Using Financial Statements to Guide a Business

Cash Flow and Taxes

Financing Strategy: Debt, Equity, or Both

Addressing Legal Issues and Managing Risk

Operating for Success

Location, Facilities, and Layout

Human Resources and Management

Leadership and Ethical Practices

Franchising, Licensing, and Harvesting: Cashing in Your Brand

Filters

You should keep reserves of at least and .