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Study Guide

Class: Trembley - Entrepreneurship and Small Business

Course: Entrepreneurship and Small Business V.2 (ESB2)

Test: Entrepreneurship and Small Business Concepts 2 Domain 4 Post-Assessment

Completed Date: 09/21/2022

This Adaptive Study Guide represents all questions that were answered incorrectly. The test question title, steps (if applicable) and references have been included to assist you in your study.

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1	Understanding Net and Gross Income Ben owns a print shop. Last quarter's income was $8,000, his cost of goods was $650, and his total expenses were $4,300. What are Ben's net income and gross income for the last quarter? Choices: Net income = $3,050 and Gross income = $7,530 Net income = $7,350 and Gross income = $3,050 Net income = $3,500 and Gross income = $7,350 Net income = $3,050 and Gross income = $7,350 References Business Financials Basic Financial Statements
2	Determining Net and Gross Income Deidre owns a pet store. Last month, her income was $5,500, her cost of goods was $800, and her total expenses were $2,600. What are Deidre's net income and gross income for last month? Choices: Net income = $2,100 and Gross income = $4,200 Net income = $2,100 and Gross income = $4,700 Net income = $3,100 and Gross income = $4,700 Net income = $4,700 and Gross income = $2,100 References Business Financials Basic Financial Statements
3	Variable Cost Variable costs __________ depending on production. Choices: fluctuate stay the same increase decrease References Business Financials Fixed and Variable Costs
4	Further Understanding Burn Rate Larry owns a shoe store. His starting balance last month was $17,300. His ending balance was $14,700. What is Larry's burn rate? Choices: $4,300 $2,600 -$2,600 -$4,300 References Business Financials Analyze a Company’s Cash Flow
5	Further Understanding ROI Danny sells skateboards. One skateboard sells for $55, and the cost to produce a skateboard is $35. What is Danny's return on investment (ROI)? Choices: 58% 56% 55% 57% References Business Financials ROI
6	Funding Options Match the funding option to its description. Choices: An owner uses their own savings to fund the business Small Business Administration (SBA) loans Helps fund a business or a specific project, usually for some kind of stake in the company Investor Sharing a startup business on an online platform where one can pre-sell products. The money from the pre-sale orders can be used as capital to build the products Small Business Administration (SBA) grants Loans must be paid back with interest. The maturity terms differ depending on the type of loan Bootstrapping Free money given to small business owners to help with the launching and development of their business. They do not have to be paid back Crowdfunding References Funding Options Funding Options and Requirements
7	Equipment and Inventory Loans When must equipment and inventory loans through the Small Business Administration (SBA) be paid back? Choices: 25 years 15 years 10 years 20 years References Funding Options Funding Options and Requirements

Study Guide

Understanding Net and Gross Income

Determining Net and Gross Income

Variable Cost

Further Understanding Burn Rate

Further Understanding ROI

Funding Options

Equipment and Inventory Loans