Question 1

Which of the following is NOT a step in establishing a business?

Accepted Answer

Getting a truck or other vehicle is not a necessary step in establishing a business. While it may be important for some types of businesses, such as a delivery service, it is not a fundamental requirement for all businesses. Developing a business plan, obtaining a business license, and obtaining insurance are all essential steps in establishing a business.

Question 2

Which section of the business plan is to be developed last?

Accepted Answer

The executive summary is typically developed last as it summarizes the entire business plan, so it's best to write it after all the other sections have been completed.

Question 3

Which of the following is NOT considered a startup cost?

Accepted Answer

Vehicle or truck, tools, and insurance are all considered startup costs as they are necessary to get the business up and running. An escrow account, on the other hand, is typically associated with ongoing expenses such as taxes or loan payments, and is therefore not considered a startup cost.

Question 4

The Federal Wage and Hour Commission may audit your files with at least ______ notice.

Accepted Answer

The answer of The Federal Wage and Hour Commission may...

Question 5

Gross profits __________ Net profits

Accepted Answer

Gross profits are always greater than net profits because gross profits are calculated before deducting expenses, taxes, interest, and overheads, while net profits are calculated after all those deductions.

Question 6

Which of the following would NOT normally be a part of a business plan cover letter?

Accepted Answer

The owner's financial statement would not normally be a part of a business plan cover letter. The cover letter typically includes basic information about the business such as its name, owner's name, and contact information. It may also provide a brief overview of the business plan and the purpose of the letter. However, detailed financial information would typically be included in the actual business plan document itself.

Question 7

Which of the following is NOT included in a financial plan?

Accepted Answer

While a credit report is an important aspect of managing personal finances, it is not directly related to creating a financial plan. The other options - start-up cost analysis, break-even analysis, and profit/loss statement are all key components of a comprehensive financial plan.

Question 8

Which of the following is to be kept as part of a ledger?

Accepted Answer

A ledger is a record of financial transactions, so parts sold would be the correct choice to be kept as part of a ledger. Employee addresses, college transcripts, and insurance certificates are not financial transactions and therefore wouldn't be recorded in a ledger.

Quiz 64: Taking Care of Business