Daytona State College - ACG 2071 EXAM 3. Scored 100%

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Daytona State College - ACG 2071 EXAM 3. Scored 100% Question 1 (4 points) Hermione decided to create an Internet site to complement her bricks-and-mortar store: Question 1 options: to allo ... w her customers to preview her products before coming to her store. to attract customers from outside her local area. to keep up with the competition. to reduce her overall expenses. Save Question 2 (4 points) According to the National Federation of Independent Business, what is the main reason entrepreneurs buy equipment as opposed to leasing? Question 2 options: Can treat the asset as they wish Don’t have to return it Less expense Puts the asset on the books Save Question 3 (4 points) An example of special-purpose equipment for a carbonated beverage company is a Question 3 options: refrigerator that keeps the product at the appropriate temperature. bottling machine that adjusts pressure for different flavors. an assembly line moving the beverages to the loading dock. mixer that combines the ingredients in the proper order. Save Question 4 (4 points) Melissa would like to reduce the number of phone calls she gets from customers who want to place orders. Which model would best work for Melissa? Question 4 options: The information-based model The content-based model The transaction-based model The customer relationsship-based model Save Question 5 (4 points) Basic considerations that enter into the selection of a location for a manufacturing business normally include Question 5 options: availability of raw materials. customer accessibility. neighborhood conditions. federal income taxes. Save Previous PageNext Page Question 6 (4 points) Charmaine has never bought anything from an online seller. Many others feel the same way. A frequent reason for their reluctance is: Question 6 options: they have had a bad online purchase experience in the past. it is difficult to predict how much time it will take to ship the product. websites are difficult to navigate. they are reluctant to purchase a product without first seeing it. Save ________________________________________ Question 7 (4 points) Cameron and Ashley bought $40 of “premium pink lemonade mix” and paper cups for their lemonade stand. These items are considered: Question 7 options: cash balance. fixed assets. inventory. cost of goods sold. Save Question 8 (4 points) Richard has in his warehouse some raw materials and finished goods that he has ready to fill customer orders. These are two types of _____. Question 8 options: accounts payable. accounts receivable. cost of goods. inventories. Save Question 9 (4 points) Marvin is preparing one of the annual financial statements and has asked you which of the following should be inlcuded in operating expenses. You tell him it is: Question 9 options: marketing-related expenses. the cost for independent dealers to prepare for the distribution of the product. interest on all loans. income taxes. Save Question 10 (4 points) To determine her company’s profits before taxes, Marilyn will have to deduct the firm's interest expense from its ____ income. Question 10 options: total projected net operating Question 11 (4 points) Irma’s current ratio is 2.5. This means that: Question 11 options: for every dollar of current assets, Irma has $2.50 in current liabilities. for every dollar of current liabilities, Irma has $2.50 in current assets. Irma has enough cash to pay her cebts for the next 2.5 years. Irma can borrow 2.5 times her annual sales. Save Question 12 (4 points) The balance sheet and income statement are separate reports, but actually Question 12 options: complement each other. contradict each other. display information for the same time duration. display vision and mission statements for the company. Save ________________________________________ Question 13 (4 points) As her accounts payable and accrued expenses rose along with her firm’s sales, Ariel noticed that ________ occurs. Question 13 options: spontaneous debt financing trade credit financing escalating debt asset-based financing Save Question 14 (4 points) The assets-to-sales relationship tends to be relatively constant within an industry, allowing for a(n) _____ technique to be utilized in projecting asset requirements. Question 14 options: percentage-of-sales bootstrap forecasting asset turnover ratio discounted sales Save Question 15 (4 points) Jaime is preparing his forecasts for the coming year. How many scenarios should he prepare when forecasting and budgeting? Question 15 options: 1 2 3 The number depends on the business. Save Previous PageNext Page Question 16 (4 points) Tomas would like to know whether his new business will be profitable, how much financing he will need, and whether he will have adequate cash flows. Tomas can get this information from: Question 16 options: pro forma financial statements. historical financial statements. pro bono financial statements. quid pro quo financial statements. Save Question 17 (4 points) As Willard’s business grows and propsers, his company’s total assets requirements will equal ___________. Question 17 options: total sources of financing less owner’s investment and retained earnings spontaneous debt financing plus bank loans plus owner’s investment less retained earnings total sources of financing less net assets and owner’s investment spontaneous debt financing plus bank loans plus owner’s investment plus retained earnings Save Question 18 (4 points) Roland has already projected his company’s sales. The next step in forecasting his company’s income is to project: Question 18 options: operating expenses. interest expense. taxes. cost of goods sold. Save ________________________________________ Question 19 (4 points) Before accepting money from a business angel, the entrepreneur should: Question 19 options: first make application for a bank loan. use all available personal assets to finance the new venture. request a loan from the angel instead of investment to prevent having to give up control. make sure the business angel is accredited. Save Question 20 (4 points) Barbara runs an Italian restaurant and is currently considering leasing or purchasing some updated equipment. What statement is correct? Question 20 options: Since the equipment she is buying will become outdated in two years, leasing would be a better option than purchasing. Since the restaurant is new and she is wanting to protect her cash flow, purchasing would be better since purchasing costs less than leasing. If the equipment is leased, the restaurant’s lines of credit will be increased. Leasing is always more expensive than purchasing over the term of the lease Question 21 (4 points) When Ben left the corporate rat race to start his own pottery business, he used some of his retirement savings to finance the business. This practice is known as: Question 21 options: self-starting. cashing out. bootstrapping. folly. Save Question 22 (4 points) Carla is a loan analyst at the bank. When Cameron applied for a loan, Carla looked at his balance sheet for ________ assets to evaluate a possible loan for his company’s financing. Question 22 options: direct and indirect tangible and intangible those founded upon past performance and those depending on future performance industry-specific and firm-specific Save Question 23 (4 points) If Joan is applying for a loan for a shelving system to improve her retail sales where the system will serve as collateral, what type of loan would be the most appropriate? Question 23 options: chattel mortgage line of credit real estate mortgage term loan Save Question 24 (4 points) Williams Alternative Power, Inc. a company developing solar panels, is applying for a loan. The research the company has done for the manufacturing process would be a(n) _____ asset for the loan evaluation. Question 24 options: collateral intangible revolving tangible Save Question 25 (4 points) Many venture capitalists: Question 25 options: prefer common stock in exchange for their investment. manage the liquidation of failed ventures. intend to cash out after five to seven years. insist on voting rights during stockholder meetings. [Show More]

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