Bookkeeping Week 5 Exam with correct
Answers
In which part of your business plan should you explain the legal structure of your
business? - Answer -Description of your business
The description of your business should also explain the legal structure of your
business. Will you have a sole proprietorship, for instance, or incorporate?
What is it called when "a separate, legal corporate entity has been created for the
purpose of conducting business"? - Answer -Incorporation of a business
Incorporation of a business means that a separate, legal corporate entity has been
created for the purpose of conducting business. Like an individual, corporations can be
taxed, sued, can enter contractual agreements and are liable for their debts.
Why is it important that your business name does not resemble the name of another
similar business offering similar services? - Answer -Because it might confuse
prospective clients, and the other business will have grounds for legal action against
you
It's important that your business name does not resemble the name of another similar
business offering similar services. For one thing, prospective clients may confuse the
other business with yours and go with your competitor's services instead of yours. In
addition, if you do use a name too similar to another business that was in business first,
they will have grounds for legal action against you.
Which of the following factors should you include when deciding on your fee? - Answer -
Your competitors' fees, your reputation, and your geographic location
Factors affecting the fees you may charge include:
● Your income requirements (this includes how much you want to be paid, your
business expenses, and how much profit you want your company to earn)
● Your reputation
● Your niche; bookkeepers providing services to law firms will likely earn more than
those who specialize in supporting not-for-profit organizations.
● Your client and their budget
● Your relationship with the client
● Your competitors' fees if you will be competing for projects
Answers
In which part of your business plan should you explain the legal structure of your
business? - Answer -Description of your business
The description of your business should also explain the legal structure of your
business. Will you have a sole proprietorship, for instance, or incorporate?
What is it called when "a separate, legal corporate entity has been created for the
purpose of conducting business"? - Answer -Incorporation of a business
Incorporation of a business means that a separate, legal corporate entity has been
created for the purpose of conducting business. Like an individual, corporations can be
taxed, sued, can enter contractual agreements and are liable for their debts.
Why is it important that your business name does not resemble the name of another
similar business offering similar services? - Answer -Because it might confuse
prospective clients, and the other business will have grounds for legal action against
you
It's important that your business name does not resemble the name of another similar
business offering similar services. For one thing, prospective clients may confuse the
other business with yours and go with your competitor's services instead of yours. In
addition, if you do use a name too similar to another business that was in business first,
they will have grounds for legal action against you.
Which of the following factors should you include when deciding on your fee? - Answer -
Your competitors' fees, your reputation, and your geographic location
Factors affecting the fees you may charge include:
● Your income requirements (this includes how much you want to be paid, your
business expenses, and how much profit you want your company to earn)
● Your reputation
● Your niche; bookkeepers providing services to law firms will likely earn more than
those who specialize in supporting not-for-profit organizations.
● Your client and their budget
● Your relationship with the client
● Your competitors' fees if you will be competing for projects
