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Running a Small Business Flashcards | StudBud
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Running a Small Business
Running a Small Business
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Topic Quiz
Flashcards
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Questions
20
Answers
1
Consult the figures below and determine the net profit for Magnificent Muffins.
$97 000
$150 000
$95 000
$171 000
2
What does the term ‘owner’s equity’ refer to?
The income earned by a business
The business’s debts
The value of the business to the owner(s)
The business’s profit
3
Consult the figures below and determine the gross profit for Mario’s Bakery.
$0
$50 000
$60 000
$67 000
4
Which of the following is
not
an advantage of starting a business from scratch?
Owner determines the pace of growth and change
Freedom to set up the business exactly as he or she wishes
The owner has to pay for goodwill
Funds are limited it is possible to begin on a smaller scale
5
The name given to the rights from a manufacturer to distribute its products under its name?
Goodwill
Entrepreneur
Incorporation
Franchise
6
Which of the following is
not
an advantage of buying an existing business?
Stock already acquired
Equipment is available for immediate use
An existing customer base
Employees may resent the change of owner
7
Which of the following statements about franchising is
not
true?
Franchising is experiencing enormous growth in Australia
The product sold by a franchise is a well-known product.
Franchisors usually provide ongoing training and support
Operating a franchise is a high-risk business venture
8
Which characteristic distinguishes a public company from a private company?
The unlimited liability of shareholders
The capital provided by shareholders
The unlimited number of shareholders
The election of directors who run the company
9
PAYG is collected by which level of government
State government
District government
Federal government
Local government
10
Which is
not
a desirable characteristic of a successful small-business owner?
Inability to deal with failure
Willingness to learn
Good communication skills
Solid leadership qualities
11
Which financial statement shows whether a business has made a profit or loss?
Budget
Cash flow statement
Balance sheet
Revenue statement
12
What is an advantage of debt financing over equity financing?
Debt financing does not involve any loss of ownership.
Debt financing requires regular payments.
Debt financing does not have to be paid back.
Debt financing requires payment of principal.
13
Which method of business promotion uses print or electronic mass media?
Sales promotion
Publicity
Personal selling
Advertising
14
Define sole trader
A business owned by one person but operated by at least 10
A business owned and operated by one person
When a company has become a separate legal entity
A business owned and operated by 2-20 people
15
The amount called that is remaining when the cost of goods sold is deducted from earned income?
Assets
Revenue
Gross profit/loss
Profit
16
Which of the following terms refers to debts owed by a business?
Gross loss
Liabilities
Expenses
Assets
17
What is a niche market?
A very small segment of the total market
Methods used by a business to inform, persuade customers
Something to do with France
the monetary value of a business's reputation
18
Define entrepreneur
Someone who starts, runs and assumes the risk of a business
Someone who takes over an existing business
Someone who develops a new idea and sells it
Someone who turns a profit
19
What is the value of the owner’s equity?
$110 000
$170 000
$210 000
$230 000
20
A business organisation in which debts incurred by one owner are binding on the other owners?
Private company
Public company
Sole trader
Partnership
