QUIZ 1 Flashcards
A ____ may have no more than 100 stockholders.
Sole proprietorship
Partnership
Corporation
S corporation
S corporation
A ___ is the simplest form of business entity.
Sole proprietorship
Partnership
S corporation
Corporation
Sole proprietorship
Eyewear’s product life cycle is approximately ____ years.
One
Two
Three
Four
Two
The value of good will is most important when ___.
Buying an existing business
_____ usually requires part ownership in a business in exchange for start up money.
The SBA
A commercial bank
A venture capitalist
A credit union
A venture capitalist
Local franchises share in the advertising costs spent by the franchisers when advertising nationally and/or regionally.
True or false
True
A mission statement should be written ____ but appear ____ in a business plan
First/last
Last/first
Last/first
As a general partner you are not allowed to participate in the management of the business.
True or false
False
Employer contributions to unemployment insurance are
Mandatory
Non-mandatory
Mandatory
Gross profit is equal to the unit sale minus
Equity
Assets
Cost of goods
Overhead
Cost of goods
Overhead divided by the profit margin equals your sales goal.
True or false
True
All of the following are population characteristics that should be considered when selecting a site for your business: culture, income, vocation, and age.
True or false
True
All of the following should be included in the marketing portion of a business plan except:
Pricing
Organizational chart
Packaging
Advertising
Organizational chart
Total U.S. Eyewear usage for people over 65 years old is approximately__%
96
75
60
25
96%
Which of the following parts of a business plan should contain the mission statement
Marketing
Executive summary
Economic conditions
Financials
Executive summary
