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ALL RIGHTS RESERVED.
ELE 3010 Quiz 4 Questions With Verified
Answers
____________ financing does not require any collateral. - Answers✔Equity
When borrowing from friends and family, the entrepreneur should avoid putting agreements in
writing to avoid future disagreements. - Answers✔False
The formula for break-even analysis is: - Answers✔Total fixed cost divided by selling price
minus variable cost per unit.
The basic balance sheet relationship is: - Answers✔Assets equal liabilities plus owner's equity
Cash flow is the same thing as profit. - Answers✔False
Which of the following is not one of the five C's of lending? - Answers✔Caution
Compensation for board members can take the form of all of the following except: -
Answers✔Perks, such as vacations
The sales budget: - Answers✔Should be prepared before developing the pro forma income
statement
Equipment would be included on the balance sheet in which section? - Answers✔Fixed assets
Which type of ownership is the least expensive to start? - Answers✔Sole proprietorship
Liability is one of the most critical reasons for establishing a: - Answers✔Corporation
An entrepreneur focuses on the operating cost before completion of the sales budget. -
Answers✔False
Which of the following would be considered a variable expense? - Answers✔Raw Materials
Which of the following is not one of the main functions of the management team according to
text? - Answers✔Help the entrepreneur write the business plan
The marginal contribution is defined as: - Answers✔Selling price per unit minus variable cost
per unit
1
ALL RIGHTS RESERVED.
ELE 3010 Quiz 4 Questions With Verified
Answers
____________ financing does not require any collateral. - Answers✔Equity
When borrowing from friends and family, the entrepreneur should avoid putting agreements in
writing to avoid future disagreements. - Answers✔False
The formula for break-even analysis is: - Answers✔Total fixed cost divided by selling price
minus variable cost per unit.
The basic balance sheet relationship is: - Answers✔Assets equal liabilities plus owner's equity
Cash flow is the same thing as profit. - Answers✔False
Which of the following is not one of the five C's of lending? - Answers✔Caution
Compensation for board members can take the form of all of the following except: -
Answers✔Perks, such as vacations
The sales budget: - Answers✔Should be prepared before developing the pro forma income
statement
Equipment would be included on the balance sheet in which section? - Answers✔Fixed assets
Which type of ownership is the least expensive to start? - Answers✔Sole proprietorship
Liability is one of the most critical reasons for establishing a: - Answers✔Corporation
An entrepreneur focuses on the operating cost before completion of the sales budget. -
Answers✔False
Which of the following would be considered a variable expense? - Answers✔Raw Materials
Which of the following is not one of the main functions of the management team according to
text? - Answers✔Help the entrepreneur write the business plan
The marginal contribution is defined as: - Answers✔Selling price per unit minus variable cost
per unit
1
