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