Question

1. which of the following is not a typical reason for small business failure?

a. not keeping adequate records
b. owner is an independent-minded risk taker
c. not having enough start - up money
d. having a poor location

1. the responsibility of developing and making the major decisions for a business plan rests with

a. the small business administration c. the bank
b. the businesss best customers d. the business owner

1. one way to develop your leadership skills is to

a. demonstrate dependability and honesty
b. work with someone who can serve as a mentor
c. study and emulate effective leaders
d. all of the above

1. when jacob writes a letter to a customer in response to the customers question, he is engaging in

a. external communication c. horizontal communication
b. informal communication d. oral communication

1. full - time employees generally work ___ hours or more per week.

a. 20 c. 35
b. 30 d. 45

1. which of the following is not an example of a benefit?

a. a retirement plan c. the employees paycheck
b. health insurance d. all of the above are examples of benefits

1. the first step in creating and effectively using a budget is to

a. gather financial information from business records
b. determine the type of revenue and expenses to be included in the budget
c. select the software you will use to create the budget
d. discuss the budget with those who will use it

1. this type of budget is an estimate of the money a business expects to receive and pay out over a specific period of time.

a. cash budget c. management budget
b. start - up budget d. operating budget

1. this financial statement shows revenues, expenses, and net income or loss for a period of time.

a. payroll record c. cash record
b. balance sheet d. income statement

Explanation:

• Question 17: Independent - minded risk - taking is a positive trait for a small - business owner. Not keeping records (a), lack of start - up money (c), and poor location (d) are common failure reasons.
• Question 18: The business owner is responsible for the business plan. The Small Business Administration (a) provides support, customers (b) are not responsible for the plan, and the bank (c) may be involved in financing but not in making major plan decisions.
• Question 19: Demonstrating dependability and honesty (a), working with a mentor (b), and studying effective leaders (c) are all ways to develop leadership skills.
• Question 20: Writing a letter to a customer (external party) is external communication. Informal communication (b) is more casual, horizontal communication (c) is between peers in an organization, and oral communication (d) is spoken.
• Question 21: Full - time employees generally work 35 or more hours per week.
• Question 22: A paycheck (c) is regular pay, not a benefit. Retirement plans (a) and health insurance (b) are benefits.
• Question 23: Gathering financial information (a) is the first step in creating a budget. Determining revenue and expenses (b) comes after gathering data, software selection (c) is a later step, and discussing with users (d) is also after initial creation.
• Question 24: A cash budget estimates money received and paid out over a period. A start - up budget (b) is for initial costs, a management budget (c) is more about internal management, and an operating budget (d) is broader than just cash flow.
• Question 25: The income statement shows revenues, expenses, and net income/loss. A payroll record (a) is about employee pay, a balance sheet (b) shows assets, liabilities, and equity, and a cash record (c) is more about cash transactions.

Answer:

1. B. owner is an independent - minded risk taker
2. D. the business owner
3. D. all of the above
4. A. external communication
5. C. 35
6. C. the employee’s paycheck
7. A. gather financial information from business records
8. A. cash budget
9. D. income statement