BUS Test 1

question

Trey has a T-shirt business that buys shirts from a wholesaler for four dollars each and sells them to retailers for eight dollars each. He imprints each shirt with a picture of a musical artist that costs him two dollars. He also pays his cousin to do the printing at five dollars an hour. LaShawn prints five shirts per hour. A retailer offers to buy 1000 shirts at seven dollars each. Should Tray agree to the deal?
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No, Tray will not make a profit at this price.
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A business plan can help a company ________
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All of these
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Total gross profit = ________.
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Total revenue – Total cost of goods sold
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In a corporation, all profits go to ________.
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The owners and the shareholders
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A competitive advantage can be based on any of six factors. Which of the following is not one of the six?
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Opportunity
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Your ________ is a concise communication of your strategy including your business definition and your competitive advantage.
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Mission statement
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Which of the following is not necessary for a contract to be binding?
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________ is/are the core values of an organization in action.
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________ is/are the core values of an organization in action.
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$16.25
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To protect against lawsuits brought by anyone injured by your product, you will need to buy ________.
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Correct Liability insurance
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To help determine whether your business will be profitable, calculate your ________.
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Correct Economics of one unit
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A(n) ________ is a document that thoroughly explains a business idea and how it will be carried out.
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Correct Business plan
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Every corporation is recognized and treated under the law as ________.
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Correct An entity, much like a person, that has expenses and earnings
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The number of stockholders in a Subchapter S Corporation is limited to ________.
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100
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It is best for ________ to write a new venture’s business plan.
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The entire team
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Cash flow ________ be negative before debt and equity infusions and ________ be negative after them.
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Can, cannot
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________ are the building blocks of business.
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Contracts
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________ insurance compensates employees for loss of income and for medical expenses due to job-related injuries.
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Correct Worker’s compensation
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A typical unit of sale for a wholesaler would be ________.
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One dozen
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The ________ section of the business plan should be written last.
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Correct Executive Summary
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Which of the following is not a strong method of identifying business opportunities?
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A person has a talent for making something and decides that they should go into business.
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A(n) ________ is a group of people or organizations that may be interested in buying a given product or service, has the resources to purchase it, and is permitted by law and regulation to do so.
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Market
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Tax-exempt, nonprofit corporations ________.
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Are set up with a specific mission to improve society
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A ________ is an official document that gives you the right to carry out a specific activity, such as an outdoor Festival.
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Permit
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To protect against lawsuits brought by anyone injured by your product, you will need to buy ________.
answer

Liability insurance
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Bankers and other potential investors will often refuse to see an entrepreneur who does not have a ________.
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Complete business plan
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The form of protection offered under U.S. law to the authors of “original works of authorship” is a(n) ________.
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Copyright
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Which of the following is not a best practice?
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Use technical language and jargon.
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A(n) ________ is a buyout plan for investors’ equity.
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IPO
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The foreign exchange rate is ________.
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The relative value between one currency and another
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Which of the following is not necessary for a contract to be binding?
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Signing parties must have their signatures notarized.
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To succeed, a business must satisfy a consumer need ________.
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At a price that provides the business with a profit
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Federal, state and local ________ may apply to a business and may affect what it can do, how it can do it, and when and where it can operate.
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Regulations
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Ratio analysis can help business owners ________.
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All of these
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Advertising is ________ promotion through media outlets.
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Paid
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Which of the following are not usually not-for-profit organizations?
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Book stores
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What is the average unit of sale for a restaurant that serves $3,250 per day in meals to 200 customers per day?
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$16.25
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Total cost of goods sold per unit consists of ________.
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Materials cost per unit plus labor cost per unit
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If you purchase $250,000 worth of insurance to protect your restaurant, with a $10,000 deductible, how much money are you entitled to receive as a payout if a fire destroys your store, which is valued at $250,000?
answer

240,000
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An injured party whose rights in a contract have been breached can bring a ________ against the other party.
answer

Lawsuit
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Which of the following is not necessary for a contract to be binding?
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Signing parties must have their signatures notarized.
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Telemarketing is a form of ________.
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Direct marketing
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Income statement projections realistically ________ in the first few months of operations.
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Show losses
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The Executive Summary contains the
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All of these
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Infringement of intellectual property is ________.
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A crime
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The four factors that form competitive advantage are ________
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Product, price, promotion, and place
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The ________ addresses the roles of the community, region, nation, and world in a business.
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Environmental analysis
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A low deductible will yield a ________
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Higher premium
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________ insurance compensates employees for loss of income and for medical expenses due to job-related injuries.
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Worker’s compensatio
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________ are the building blocks of business.
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Contracts
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A business plan can help a company ________.
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All of these
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In limited liability companies ________.
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Correct Income is taxed only once, as the personal earnings of members
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Obtain a trademark in order to ________.
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Protect your logo
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Indicating that you are assuming personal risk involves showing that ________.
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All of these
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Giovanni’s entrepreneurial venture produces a tangible product. This is an example of a ________ venture.
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Manufacturing
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Which of the following items is not a competitive advantage?
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Offering free samples during a two-week promotion
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A business plan can help a company ________.
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All of these
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Which is not a potential penalty for breaking a contract?
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You may lose a share of the ownership of your business to the other party who signed the contract.
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A ________ is a company’s plan to generate revenue and make a profit from operations.
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Business model
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Price should reflect the organization’s ________.
answer

All of these
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Your ________ is a concise communication of your strategy including your business definition and your competitive advantage.
answer

Mission statement
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A ________ is a group of people who would be interested in buying a given product or service.
answer

Market
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The four “A’s” of a successful contract include: ________.
answer

Both Avoid misunderstanding and assure work and Assure payment and avoid liability
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Making the beliefs, values, and behavioral norms explicit and intentional builds the ________ of an organization.
answer

Culture
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________ insurance is designed to cover in the event that a business’s (its employees’) failure to do something that causes harm to a customer.
answer

Errors and omissions
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Federal, state and local ________ may apply to a business and may affect what it can do, how it can do it, and when and where it can operate.
answer

Regulations
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Resumes and position descriptions should be included in business plans for ________.
answer

Key managers
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A ________ is a company’s plan to generate revenue and make a profit from operations.
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Business model
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Some contracts specify that conflicts may be settled through ________ instead of court.
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Arbitration
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A factor to consider when selecting a physical location is ________.
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All of these
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The foreign exchange rate is ________.
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The relative value between one currency and another
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Business leaders create wealth by ________.
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Hiring employees in order to sell more units and generate more profit
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One section of the business plan that is often neglected is the ________.
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Opportunity Analysis and Research

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