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Advanced Ch. 29 - Financial Business Skills Flashcards | StudBud
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Advanced Ch. 29 - Financial Business Skills
Advanced Ch. 29 - Financial Business Skills
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1
What is the single MOST important factor in any business plan?
Exciting Marketing Plan
Solid Financial Strategy
Bold Mission Statement
Persuasive Executive Summary
2
What would be a bank representative's main concern when reading a business plan for a salon?
Services offered at the salon
Owner's ability to repay loans
Owner's writing and persuasive skills
Cost of the products sold at the salon
3
A(n) ___________ provides a clear picture of how much money is regularly flowing in and out of the business.
Income Statement
Money Circulation Report
Cash Flow Statement
Balance Sheet
4
To protect you and your family from unforeseeable events, such as personal injury lawsuits, what insurance do you need?
Lawsuit Protection Insurance
Personal Liability Insurance
Life Insurance
Disaster Defense Insurance
5
Prior to opening your own business, all of these are steps you should take except...
Examine the industry trends
Make promises to investors about profits
Analyze the competition
Study economic conditions
6
Why should you expect to invest personal funds into your own business?
To justify paying yourself a large salary from investors' money
To justify filing for bankruptcy if the business fails
To ensure you qualify for tax deductions that help you hold onto profits
To demonstrate that you are willing to take a risk on yourself
7
A(n) ________ provides an overview of your business at a given time and is measured in terms of assets and liabilities.
Balance Sheet
Cash Flow Statement
Net-Worth Tracker
Income Statement
8
A ________ is a person who invests in a business with the goal of gaining a return on their investment.
Venture Capitalist
Loan Advisor
Bank Teller
Wise Loaner
9
What part of a business plan should be written LAST?
Financial Plan
Marketing Strategy
Executive Summary
Mission Statement
10
Taxable income includes...
Salary, Life Insurance Money, and Tips
Commissions, Paychecks, and Inheritances
Salary, Commissions, and Tips
Tips, Birthday Money, and Paychecks
11
Which of these is NOT an example of an asset?
A Laser Device with a monthly payment plan
Facial Chairs
Equipment
Light Fixtures
12
What is an expectation that venture capitalists generally have in exchange for investing in a business?
Guaranteed payback even if the business fails
The use of their family name as the name of your business
Some measure of control over the way a business is conducted
Entitlement to free products and services for their family and friends
13
The employer must match each employee's contribution for which taxes?
Social Security and Self-Employment Tax
Social Security and Medicare
Federal and State Unemployment
Medicare and Federal Income Tax
14
If a business has a negative cash flow, what should they do?
Borrow money to pay expenses
Temporarily stop paying bills and loans
Ask employees to work without pay
Speed up purchases of new equipment
15
When starting a business, raising capital comes from what three primary sources?
Investors, Crowd-Funding, and Loans
Family Loans, Your Paycheck, and Investors
Crowd-Funding, Your Own Savings, and Crypto Currency
Loans, Your Own Savings, and Investors
16
Protection against business casualties or the loss of something that you cannot afford to be without is known as...
Disaster Defense
Insurance
Protection Policy
Asset Protection
17
According to the IRS, what is not true about Independent Contractors?
They set their own fees/rate
They pay their own taxes
They control their working hours
They cannot accept tips
18
If a salon owner wishes to build a team-based business they should...
Only employ close friends and family
Avoid hiring employees
Hire a mix of part-time independent contractors and employees
Avoid hiring independent contractors
19
What is typically referred to as the "net worth" of a business?
Liabilities
Owner's Equity
Cost of Goods Sold
Gross Profit
20
All of these are standard components of a business plan except...
Strategic Design & Development Plan
Operations Plan
Debt Consolidation Plan
Executive Summary
21
By law, ______________ is an insurance required in all states.
Personal Liability Insurance
Worker's Compensation
Malpractice Insurance
Health and Disability Insurance
22
What is risk management?
Putting yourself in a plastic bubble so nothing bad happens to you
Keeping all of your money under your mattress so nothing bad happens to it
A logical evaluation of the cause and effect of each decision you make
Standard precautions you can take to decrease the possibility of injury
23
Why does starting a new business involve a significant amount of risk?
Every new business goes through costly IRS audits in its first year
The time you must spend starting your business will damage your health
New businesses are targeted for arson, theft, and vandalism
There is no guarantee of return on your investment
24
What is the first rule of prevention in any risk management program?
Hiring security personnel
Strict adherence to guildelines
Video monitoring of employees
Asking clients to waive liability
25
The four P's of Strategic Design & Development are...
Price, Plan, Production, and People
Promotion, Price, Product and Place
Place, Plan, Production, Promotion
Product, People, Plan, and Presentation
26
The individual taxpayer number of a United States Citizen is...
Taxpayer ID
Employee Identification Number
Social Security Number
Birthdate
27
Advertising, direct marketing, personal selling skills, publicity, public relations, and sales promotions are used for:
Brand Recognition
Venture Capital
Personal Friendships
Employeee Retention
