Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Small Business > Small Business Final Exam > Flashcards

Small Business Final Exam Flashcards

1
Q

Writing a business plan is largely a process of:

A

research, revision and rewriting.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The most common problem when writing a business plan is:

A

overcoming procrastination.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Entrepreneurship is best defined as:

A

risking time and money to make a profit.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

It is best to have a partner whose personality is:

A

complimentary to yours.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The term micro-enterprise usually refer to a business that has fewer than:

A

5 employees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Compared to the general population, successful entrepreneurs tend to be:

A

more confident in their abilities to influence their own futures.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Which of the following is a source of primary marketing research information?

A

A questionnaire or survey.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The first research priority for a new business is to determine

A

market potential.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Cash that owner takes out of the business for his/her peronal use is called:

A

Owners draw.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The Financial Statement that shows the financial position of a company at a particular moment in time is the:

A

balance sheet.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Liabilities are:

A

legal debts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The break-even point is where:

A

a company’s expenses are covered, a company starts to make a net profit, the income from sales is equal to all of a company’s costs and expenses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Supporting material included in a business plan appears in the:

A

appendix.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The majority of dissatisfied customers:

A

do not complain to the service provider, tell numerous others about the problem, can be kept as customers if the problem is resolved.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The pricing strategy of a business should be based on:

A

a break even analysis.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

True/False: All business plans follow the same 5 section model.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

True/False: The skills and traits that employers are looking for and the skills and traits needed to own a business are virtually identical.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

True/False: If the owner of a sole proprietorship is killed, the “business” no longer exists as a legal entity.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

True/False: The greater the variety of potential customers that a new business has, the easier it is to identify the target market.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

True/False: A new business must make sales projections for at least five years.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

True/False: “Competitive” pricing means pricing lower than your competition.

A

False

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

True/False: Advertising and marketing are the same thing.

A

False

23
Q

True/False: It costs five times more to get a new customer than to keep an existing customer.

A

True

24
Q

True/False: “Cold calling” refers to approaching customers with whom there has been no previous contact.

A

True

25
Q

True/False: Sales “objections” are often raised by a prospect to avoid having to make a decision.

A

True

26
Q

True/False: Equipment or materials you already own and will use in your business, are considered to be part of the start up costs of the business.

A

True

27
Q

True/False: A corporation may be registered with either the federal government or a provincial government.

A

True

28
Q

True/False: Bookkeeping and accounting are interchangeable terms.

A

False

29
Q

True/False: Almost all businesses have some seasonal fluctuation in sales.

A

True

30
Q

A business where the owner is officially a “legal shareholder” is called a:

A

corporation.

31
Q

The simplest and cheapest legal form of business registration is a:

A

sole proprietorship.

32
Q

Businesses similar to your own, in terms of size, location, services and the customers they are pursuing would be classified as:

A

direct competition.

33
Q

People or businesses ‘most likely’ to purchase your product or service are known as your:

A

target market.

34
Q

Effective marketing delivers a strong message using an appropriate:

A

medium.

35
Q

By deducting your personal liabilities from your personal assets you determine your:

A

net worth.

36
Q

The M in SMART goals stands for:

A

measurable.

37
Q

A “profitable” business can still go bankrupt because of problems with:

A

cash flow.

38
Q

When business revenue equals business expenses, the company has reached the:

A

break even point.

39
Q

Assets pledged to secure a loan are known as:

A

collateral.

40
Q

True/False: It is much easier to lower your price than it is to raise your price.

A

True.

41
Q

Name the funding sources:

A 
Personal Resources
Love Money
Government Programs
Financial Institutions
Partners and/or Investors
Alternate Sources
42
Q

What is the most common method of financing a micro business?

A

Personal resources.

43
Q

The best funding comes from the:

A

positive cash flow.

44
Q

Rolling profits back into the business can reduce or even eliminate the need to seek:

A

funding from outside sources.

45
Q

Love money is from:

A

friends and family.

46
Q

True/False: You should write up a basic agreement outlining the terms and conditions of this funding and have all relevant parties sign it.

A

True.

47
Q

True/False: It is a popular misconception that there are hundreds of government programs out there throwing money at new business start ups.

A

True.

48
Q

True/False: Financial institutions are primarily interested in the owner/operators ability to repay the loan.

A

True.

49
Q

True/False: The majority of small business loans do not require personal guarantees from business owners.

A

False.

50
Q

True/False: The higher the risk, the higher the interest rate.

A

True

51
Q

What are the 5 C’s of Credit

A 
Character
Capacity
Collateral
Capital
Credit History
52
Q

Having partners and/or investors are referred to as

A

equity financing.

53
Q

True/False: Partnerships, in any form, are the riskiest of new business start up formats.

A

True

54
Q

No partnership, under any circumstances, should begin operation without a written:

A

partnership agreement.

Small Business (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions