Summary Micro-Enterprise II Pre-test (answered latest spring 2022/23.)
Micro-Enterprise II Pre-test (answered latest spring 2022/23.) 1. A dietitian decides to start a cruise vacation business for those looking to learn how to live a healthier lifestyle. The cruise will offer seminars with materials on healthy eating and exercise, and all of the food on the cruise will be healthy alternatives.Classify each expense as fixed or variable. SHIP RENTAL 2. What is one impact that a company might experience as a result of an ethical violation? 3. Which are three risks of entrepreneurship? 4. A fitness trainer is assessing a business strategy in a neighborhood whose residents are mainly single, recent college graduates. The trainer would like to target local businesses in the neighborhood to acquire new customers.Which group should be targeted at these local businesses? 5. What is an advantage of buying a franchise? 6. A dietitian decides to start a cruise vacation business for those looking to learn how to live a healthier lifestyle. The cruise will offer seminars with materials on healthy eating and exercise, and all of the food on the cruise will be healthy alternatives.Classify each expense as fixed or variable. FOOD 7. A dog grooming business is legally structured as a sole proprietorship. What are the tax implications for this structure? 8. A fitness trainer is presenting a business plan for a new studio to investors. The trainer envisions a studio with equipment and features that will meet the needs of customers with a variety of personal and work schedules. What studio feature would appeal to customers with demanding schedules? 9. A landscaper owns a successful local business that provides lawn care services. The owner wants to enhance the sustainability and longevity of the company. What should the owner do? 10. Which three key values does a business plan provide? 11. A hair salon is trying to determine how to tell if it is successful or not and has decided it will be successful when it starts to make a profit.Which milestone will indicate this? 12. A dietitian decides to start a cruise vacation business for those looking to learn how to live a healthier lifestyle. The cruise will offer seminars with materials on healthy eating and exercise, and all of the food on the cruise will be healthy alternatives.Classify each expense as fixed or variable. EXERCISE AND DIET BOOKS 13. What is a characteristic of an entrepreneur? 14. A restaurant owner finds that 68% of customers never come back. What is the most important thing the restaurant owner should do to have a higher percentage of repeat customers? 15. A restaurant owner wants to attract more customers by getting enough ratings to appear on a popular social media site. The owner can generate 10% more business by reaching an additional 100 reviews. He knows that if he provides one - hundred 50% off coupons for meals, he can get 100 reviews.How much will it cost to increase business by 10% if reach coupon is likely to cost $15? 16. A dietitian decides to start a cruise vacation business for those looking to learn how to live a healthier lifestyle. The cruise will offer seminars with materials on healthy eating and exercise, and all of the food on the cruise will be healthy alternatives.Classify each expense as fixed or variable. CREW MEMBER SALARIES 17. A travel agent wants to hire a new information technology manager for a fast-growing startup. The company is two years old, and the ITM is a salaried position that oversees all technology operations.Which factor could prevent the hire? 18. What is a drawback of buying a franchise? 19. A personal trainer recently established a personal training company in an underserved urban community and has been having difficulties securing financial support from banks.Which resource should the personal trainer utilize to secure funding for his business venture? 20. What is a drawback of a sole proprietorship? 21. A furniture builder generates $1,000 per sale on average, and she needs to generate $12,000 per month to break even. Through experience, she finds that 20% of her active prospects buy within 30 days.How many prospects should the furniture builder have in her active client listings at all times, at a minimum? 22. A successful fitness trainer has decided to open a health club. The trainer's business plan includes an organizational chart with three levels of employees 1.) top management , 2.) department heads, and 3.) front - line employees. What are some of the expected roles for the health club's front- line employees? 23. A cabinetmaker has noticed that sales volumes for two different product lines have changed during the recession. The sales volume for the less expensive line of restored cabinets, has increased by 20%; while the sales volume for the more expensive line of new cabinets, has decreased by 30%. The restored cabinets sell for 30% less than the new cabinets, but the cost to purchase, transport, and refinish the restored cabinets is 25% less than the cost of new cabinets.What should the cabinetmaker do to improve business? 24. A beautician is preparing a cash flow statement for the year that just ended. The beginning cash balance was $2575. Cash sales were $41,340, annual chair rental was $4800, $2635 paid for supplies, licenses, and fees were $750. What was the ending cash balance? 25. The owners of a new daycare company were told by a banker and a business consultant that they need to grow the business during the first year. The owners research the Small Business Administration website to learn more about business planning and goal setting. The owners want to determine whether or not their business is creating a sustainable foundation for future success. Which business results should the owners track? - 26. A local micro-brewery wants to retain and develop close relationships with its customers.What is the best option for the micro-brewery to accomplish this goal? 27. A gourmet chef sells high-priced, high-profit chocolates out of a very expensive store location in a very wealthy area. The store's fixed costs are $300,000 per year. The variable costs to make a box of chocolates average $10, including costs of ingredients, packaging and labor. Because the chocolates are so delicious, the store can sell them for $35 per box. How many boxes does the store need to sell to cover its fixed costs? 28. Which factor is NOT a characteristic to the owner of a sole proprietorship? - (ANS): Job termination 29. What is an example of management buyout? 30. A janitorial service provider is reviewing requests for its services.Which potential new customer will generate the highest gross revenue over the next year? 31. An independent pizza operator wants to reach customers who eat pizza at a competing national chain.Which is a strategy for identifying those customers? 32. In the first week of January, a landscaping company had a beginning cash balance of $25,000. During this time, the company's inflow and outflow of cash include the following: Sales $10,000, AR collected $180,000, Asset sales $30,000, Direct materials and labor $(106,000), Manufacturing overhead $(29,000), Selling and administrative costs $(35,000), Asset purchases $(20,000) What is the ending balance? 33. What is a benefit for entrepreneurs in using angel investors for start-up equity? - 34. A child daycare center needs to identify a value proposition that will help parents feel secure about using their services. Which two initiatives meets this objective? 35. A barber shop records all costs of operating the business in two expense categories. The first category is cost of goods sold and the second is overhead. For the past six months, the shop has shown a loss at the gross profit level. How can the owner improve the prospects of making a profit? - 36. What is a drawback of equity funding? 37. Which is an entrepreneur? 38. A baker serves a high-end market, including celebrity weddings. On average, the baker makes $1000 in gross margin per sale. The baker's monthly overhead expenses are $15000. Through experience, she finds that 10% of her active prospects buy within 30 days. At a minimum, how many prospects should the baker have in her active client listings at all times? 39. Gerry wants to open a florist shop in a vacant building in a downtown shopping area. Gerry needs to determine whether there is sufficient demand for a florist shop.Which two questions should Gerry ask? 40. A fitness trainer in the downtown area of a major city is trying to attract Millennials by offering extended hours in the evening. The owner has a limited promotional budget. What is an efficient way to reach these customers? 41. Which of the following best defines self-motivation? - 42. A mechanic wants to start a business. The mechanic believes the business will cover its own costs after two months, and the start up expenses through that time will be $125,000.The bank asks the mechanic to complete a form with the following information. A Estimated investment in "start-up expenses" B "contingency amount" (equal to 10% of "A") C "start-up capital (A+B) D (one-half of C) E (sum of D+C) What is the answer for E? 43. A new auto repair shop has introduced technology that is better at diagnosing malfunctions and will save consumers money. The owner hopes the change is newsworthy so the local media will report it to the public. Which type of promotional tool is the owner hoping to use? 44. The chef of a fine dining restaurant has created several DVDs demonstrating how to prepare the restaurant's best- selling menu items. The chef wants to protect intellectual property rights for the videos.What action should the chef take? 45. Characteristics of successful entrepreneurs include: 46. A cabinetmaker is seeking new customers for a business that makes expensive cabinets, The cabinetmaker has identified a group of potential customers with high incomes.Which method of segmentation is the owner using? 47. A beautician develops a tool for applying hair dye more efficiently.Which legal form of protection should the beautician apply for to protect this intellectual property? 48. A real estate broker is applying for two loans at the bank. The first one is to purchase an office building. The second one is to provide operating cash to pay utilities and office staff until some receivables are collected.Why would a bank be more inclined to approve the first loan but not the second? - 49. A chef has created a menu specializing in items that are available from only one supplier. The owner of the restaurant is concerned about the effectiveness of the supply chain associated with this menu.What is the concern of the owner? 50. A janitor provides evening cleaning services to local businesses and wants to expand his business to provide services to homeowners. The janitor holds an open house to allow neighbors to share concerns they may have about using housecleaning services. Homeowners say they are concerned with having strangers in their homes and with whether the cleaners would be comfortable working around children. What should his next step be?
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- Micro-Enterprise II
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- Micro-Enterprise II
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- January 24, 2023
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micro enterprise ii pre test
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micro enterprise ii pre test questions and answers
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a dietitian decides to start a cruise vacation business for those looking to learn how to live a healthier lifestyle th
