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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
A(n) ___________ provides a clear picture of how much money is regularly flowing in and out of the business.
Money Circulation Report
Income Statement
Cash Flow Statement
Balance Sheet
2
Protection against business casualties or the loss of something that you cannot afford to be without is known as...
Protection Policy
Disaster Defense
Insurance
Asset Protection
3
What is an expectation that venture capitalists generally have in exchange for investing in a business?
Entitlement to free products and services for their family and friends
The use of their family name as the name of your business
Some measure of control over the way a business is conducted
Guaranteed payback even if the business fails
4
What part of a business plan should be written LAST?
Financial Plan
Marketing Strategy
Executive Summary
Mission Statement
5
Why does starting a new business involve a significant amount of risk?
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
Every new business goes through costly IRS audits in its first year
6
Advertising, direct marketing, personal selling skills, publicity, public relations, and sales promotions are used for:
Venture Capital
Personal Friendships
Brand Recognition
Employeee Retention
7
To protect you and your family from unforeseeable events, such as personal injury lawsuits, what insurance do you need?
Life Insurance
Disaster Defense Insurance
Lawsuit Protection Insurance
Personal Liability Insurance
8
A(n) ________ provides an overview of your business at a given time and is measured in terms of assets and liabilities.
Balance Sheet
Income Statement
Cash Flow Statement
Net-Worth Tracker
9
Taxable income includes...
Commissions, Paychecks, and Inheritances
Salary, Commissions, and Tips
Salary, Life Insurance Money, and Tips
Tips, Birthday Money, and Paychecks
10
If a business has a negative cash flow, what should they do?
Speed up purchases of new equipment
Borrow money to pay expenses
Temporarily stop paying bills and loans
Ask employees to work without pay
11
What is the first rule of prevention in any risk management program?
Strict adherence to guildelines
Video monitoring of employees
Hiring security personnel
Asking clients to waive liability
12
When starting a business, raising capital comes from what three primary sources?
Crowd-Funding, Your Own Savings, and Crypto Currency
Family Loans, Your Paycheck, and Investors
Loans, Your Own Savings, and Investors
Investors, Crowd-Funding, and Loans
13
By law, ______________ is an insurance required in all states.
Worker's Compensation
Personal Liability Insurance
Malpractice Insurance
Health and Disability Insurance
14
All of these are standard components of a business plan except...
Debt Consolidation Plan
Strategic Design & Development Plan
Operations Plan
Executive Summary
15
Why should you expect to invest personal funds into your own business?
To demonstrate that you are willing to take a risk on yourself
To justify filing for bankruptcy if the business fails
To ensure you qualify for tax deductions that help you hold onto profits
To justify paying yourself a large salary from investors' money
16
The employer must match each employee's contribution for which taxes?
Social Security and Self-Employment Tax
Medicare and Federal Income Tax
Federal and State Unemployment
Social Security and Medicare
17
What is risk management?
Keeping all of your money under your mattress so nothing bad happens to it
Putting yourself in a plastic bubble so nothing bad happens to you
A logical evaluation of the cause and effect of each decision you make
Standard precautions you can take to decrease the possibility of injury
18
The four P's of Strategic Design & Development are...
Price, Plan, Production, and People
Place, Plan, Production, Promotion
Promotion, Price, Product and Place
Product, People, Plan, and Presentation
19
Which of these is NOT an example of an asset?
Equipment
Light Fixtures
Facial Chairs
A Laser Device with a monthly payment plan
20
What is typically referred to as the "net worth" of a business?
Owner's Equity
Gross Profit
Cost of Goods Sold
Liabilities
21
According to the IRS, what is not true about Independent Contractors?
They set their own fees/rate
They control their working hours
They cannot accept tips
They pay their own taxes
22
The individual taxpayer number of a United States Citizen is...
Employee Identification Number
Taxpayer ID
Social Security Number
Birthdate
23
What is the single MOST important factor in any business plan?
Solid Financial Strategy
Exciting Marketing Plan
Bold Mission Statement
Persuasive Executive Summary
24
What would be a bank representative's main concern when reading a business plan for a salon?
Owner's ability to repay loans
Cost of the products sold at the salon
Owner's writing and persuasive skills
Services offered at the salon
25
Prior to opening your own business, all of these are steps you should take except...
Study economic conditions
Examine the industry trends
Make promises to investors about profits
Analyze the competition
26
A ________ is a person who invests in a business with the goal of gaining a return on their investment.
Bank Teller
Venture Capitalist
Wise Loaner
Loan Advisor
27
If a salon owner wishes to build a team-based business they should...
Avoid hiring employees
Only employ close friends and family
Avoid hiring independent contractors
Hire a mix of part-time independent contractors and employees
