Gwen 2023 Part 2

Match each business opportunity to its associated benefit and drawback.

• Benefit: Build your own way

  Drawback: Riskiness

• Buy an existing business

• Benefit: Has customers

  Drawback: Expensive

• Start a new business

• Benefit: Branding success

  Drawback: Pay a royalty

• Buy a Franchise

Which two options are benefits of using Angel investors to help start a business?

• Angel investors typically do not expect to be paid until the business begins making money and accept a lower ROI

• Angels have no say in the management and of the business

• Angels do not share in the profits of the business and payback is not required

• The payback of the loan is predictable and will not get paid

The owner of a house cleaning uses wants to target customers for its services. Match each method of segmentation to its potential customers. Answer opitions may be used more than once or not at all.

• Home owners who live in neighborhoods near the business

• Demographic

• Home owners with higher incomes

• Psychographic

• Home owners with busy lifestyles that don't have time to clean themselves

• Behavioral

• Home owners who are looking for promotions and discounts on cleaning services

• Geographic

What is the primary drawback of a Sole Proprietorship?

• Double-taxation

• Unlimited liability

• Requires an attorney to set up

• Must answer to shareholders

A business is legally structure as a C corporation. What are the tax implications for this structure?

• All shareholders pay an equal amount of tax.

• Income earned by the corporation passes to one owner to be taxed.

• The corporation pays all of the taxes for the shareholders

• The corporation pays taxes and each of the shareholders pays taxes.

​ (a)   Credit card processing is percentage of the amount customers pay the fitness trained by card. ​ (b)   Monthly leases of credit card machine. ​ (c)   Products sold for customers to take home and use outside of the gym. ​ (d)   Weekly advertising in a local newspaper.

• Variable cost
• Fixed Cost

Parnters of a small website development company are identifying milestones that will measure the growth of their business during its first year. What should the partners measure to help track the growth of the business during the first year?

• Expenses

• Assets

• Liabilities

• Sales

A family-owened retail store is exploring various ways to advertise. Select the marketing outlet to match it with the associated benefit and drawback.

​ (a)   Cost effect, but easly ignored ​ (b)   Targets local communty, but has a shrinking subscriber especally younger consumers. ​​ (c)   Inexpensive to produce, but requires ongoing maintenance. ​ ​ (d)   Stong impact, but is expensive. ​ (e)   Highly fleible, but limited creative space.

• Email .
• Newspaper
• Social Media
• Television
• Web Banners

An entrepreneur wants to open a sandwich shop in a vacant building in a downtown shopping area. The entrepreneur needs to determine whether the sandwich shop would have potential for success. Which two pieces of information he needs to know?

• Dependable suppy chains and the size of the vacant building in square metres.

• Number of potential employees in the area and the vacant land in the area

• Amount of foot traffic there is in the shopping area and the disposable income of people who live or work nearby

Match each asset or liablility with the proper category on the balance sheet. Answer options may be used once, more than once, or not at all.

• Long term assets

• Bank loans

• Current assets

• Inventory

• Current liabilities

• Mortgage payments

• Long-term liabilities

• Equipment