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Principles Business, Marketing, & Finance 5th 6-Week Review Flashcards | StudBud
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Principles Business, Marketing, & Finance 5th 6-Week Review
Principles Business, Marketing, & Finance 5th 6-Week Review
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Entrepreneurship - Owning Your Future 11th Edition
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
In the selling process, contacting someone you do not know, without prior notice, is called a
prospect call
cold call
sales call
promotional call
2
Rate the business needs to spend cash to cover costs before beginning to generate cash flow
cash flow rate
start-up rate
overhead rate
burn rate
3
Besides the amount of sales, what other info is needed to calculate return on sales (ROS)?
owner's equity
net income
total assets
total liabilities
4
Operating expenses are $5,000, gross profit per unit is $5, the number of break-even units is
10,000
10
100
1,000
5
Which of the following is
not
a current liability?
mortgage
collected state sales taxes
accounts payable
bank loan
6
The most successful salespeople
know how to listen and ask questions
don't have to make many sales calls
tell customers what they want to hear
push until the prospect finally says yes
7
Which is
not
a techniqueused to forecast sales
observational data
industry standards
educated prediction
full capacity
8
Most businesses try to maintain a current ratio of 1 to 1.
True
False
9
The number of sales per month or quarter that a salesperson is expected to achieve is called a
sales target
sales quota
bonus
commission
10
The cash flow equation is
Cash Inflow - Cash Outflow = Net Profit
Cash Outflow - Cash Inflow = Gross Profit
Cash Inflow - Cash Outflow = Net Cash
Cash Outflow - Cash Inflow = Net Cash
11
Expenses that change based on the quantity of goods a business sells in a given period of time
variable expenses
fixed expenses
fluctuating expenses
selling expenses
12
Total liabilities divided by total assets is the formula used to calculate the debt ratio.
False
True
13
In figuring straight-line depreciation, the disposal value is the value of the item when
you average out its cost over 5 years
you buy it
you finish using it
14
A
balance sheet
includes
owner's equity
assets
liabilities
15
Which of the following is not one of the common fixed expenses represented by “I SAID U ROX”?
utilities
rent
assets
salaries
16
One of the two most popular types of visual displays used by entrepreneurs is the
line graph
pie chart
picture graph
histogram
17
Last year's owner’s equity was $400,000 and this year’s shows as $500,000.Percentage increase?
0.20%
0.25%
25%
20%
18
Depreciation expense for machine that cost $50,000, is used for 5 years, then sold for $15,000
$7,000
$6,000
$4,000
$5,000
19
In an income statement, subtracting the cost of goods sold from the net sales provides the
revenue
net operating income
gross profit
net income
20
Salary-only is the method of payment most often used to compensate salespeople.
True
False
21
The amount owed by business to its suppliers for credit purchases is called
accounts receivable
accounts payable
merchandise payable
purchases on account
22
A common term used toidentify people who are directly involved in the selling process is
sales force
none of the above
selling machine
sales callers
23
If net income of a business is $3,000 and the owner’s investment is $10,000, then the
ROI
is
30%
300%
3%
0.3%
24
Entrepreneurs should prepare an income statement monthly.
False
True
25
Statement that includes a column with percent change from first period to ending period is a
same-size balance sheet
comparative balance sheet
balance sheet
competitive balance sheet
