BASE exam.
pros and cons of selling directly to consumer: - CORRECT ANSWER - lower costs
- direct brand awarenss
pros and cons of selling though intermediaries - CORRECT ANSWER - more expensive
- reinforce brand image
- greater exposure through wider distribution
- increase consumer awareness
How is a social enterprise different from a for profit business? - CORRECT ANSWER a social enterprise #1
value is having a social image/positive impact.
how is a social enterprise different from a non-profit, NGO, or govt. agency? - CORRECT ANSWER A
social enterprise is still a profitable company with its capital going many places. It has the same business
model and structure as normal companies.
what for-profit business practices does a social enterprise use to achieve its social mission? - CORRECT
ANSWER it uses profit to SUSTAIN their social mission. Beneficiaries: Subsidized rates, or mix of full
payers and those who pay nothingCapital: Below market capital, or mix of donations and market-rate
capital.Workforce: Below market wages or mix of volunteers and pulley paid staff.Suppliers: Special
discounts or mix of in-kind and full price donations.
Contribution Margin - CORRECT ANSWER Sales - Variable Costs
this is the relationship between sales and variable costs, CM measures how much money each additional
sale contributes to the company.
, money leftover from sales AFTER variable costs
for the supplier (manufacturer, brand, producer), is a higher or lower CM better? why? - CORRECT
ANSWER a Higher CM is better, because that means that there is more money leftover after variable
costs.
what kind of costs are used in finding the producer's CM? whose price is used in finding CM, the
producer's or retailers? - CORRECT ANSWER the PRODUCER's variable costs are the ones needed in
finding contribution margin
The 4 basic financial statements - CORRECT ANSWER 1. Income Statement
2. Statement of Retained Earnings
3. Balance Sheet
4. Statement of Cash Flows
what kinds of accoutns appear on each type of statement? - CORRECT ANSWER 1. income statement:
revenues, COGS, expenses, taxes (gains and losses)
2. statement of RE: beg RE, NI, Dividends
3. Balance sheet: assets, liabilities (payables and receivables), SE (retained earnings)
4. Statement of CF: Net Income, Operating expenses, Financing expenses, Investing expenses
capital expenditures vs. depreciaton expenses
how are the two related? - CORRECT ANSWER Depreciation is helpful for capital expenditures because it
allows the company to avoid a significant hit to its bottom line in the year when the asset was
purchased.
can a company have a lot of cash but be in poor financial health?
pros and cons of selling directly to consumer: - CORRECT ANSWER - lower costs
- direct brand awarenss
pros and cons of selling though intermediaries - CORRECT ANSWER - more expensive
- reinforce brand image
- greater exposure through wider distribution
- increase consumer awareness
How is a social enterprise different from a for profit business? - CORRECT ANSWER a social enterprise #1
value is having a social image/positive impact.
how is a social enterprise different from a non-profit, NGO, or govt. agency? - CORRECT ANSWER A
social enterprise is still a profitable company with its capital going many places. It has the same business
model and structure as normal companies.
what for-profit business practices does a social enterprise use to achieve its social mission? - CORRECT
ANSWER it uses profit to SUSTAIN their social mission. Beneficiaries: Subsidized rates, or mix of full
payers and those who pay nothingCapital: Below market capital, or mix of donations and market-rate
capital.Workforce: Below market wages or mix of volunteers and pulley paid staff.Suppliers: Special
discounts or mix of in-kind and full price donations.
Contribution Margin - CORRECT ANSWER Sales - Variable Costs
this is the relationship between sales and variable costs, CM measures how much money each additional
sale contributes to the company.
, money leftover from sales AFTER variable costs
for the supplier (manufacturer, brand, producer), is a higher or lower CM better? why? - CORRECT
ANSWER a Higher CM is better, because that means that there is more money leftover after variable
costs.
what kind of costs are used in finding the producer's CM? whose price is used in finding CM, the
producer's or retailers? - CORRECT ANSWER the PRODUCER's variable costs are the ones needed in
finding contribution margin
The 4 basic financial statements - CORRECT ANSWER 1. Income Statement
2. Statement of Retained Earnings
3. Balance Sheet
4. Statement of Cash Flows
what kinds of accoutns appear on each type of statement? - CORRECT ANSWER 1. income statement:
revenues, COGS, expenses, taxes (gains and losses)
2. statement of RE: beg RE, NI, Dividends
3. Balance sheet: assets, liabilities (payables and receivables), SE (retained earnings)
4. Statement of CF: Net Income, Operating expenses, Financing expenses, Investing expenses
capital expenditures vs. depreciaton expenses
how are the two related? - CORRECT ANSWER Depreciation is helpful for capital expenditures because it
allows the company to avoid a significant hit to its bottom line in the year when the asset was
purchased.
can a company have a lot of cash but be in poor financial health?
