Business Administration exam
queries and answers graded A+
Annual Receipts - ANS✅✅"Receipts" means total income (or in the case of a sole proprietorship,
"gross income") plus "cost of goods sold" as these terms are defined and reported on Internal
Revenue Service tax return forms.
Business Plan - ANS✅✅A written outline that evaluates all aspects of your business.
Business Profile - ANS✅✅A type of definition that summarizes the important characteristics of the
business and helps to identify areas for improvement.
Calendar Tax Year - ANS✅✅12 consecutive months beginning January 1 and ending December 31.
Fiscal Tax Year - ANS✅✅12 consecutive months ending on the last day of any month other than
December, or a 52-53 week year.
Capital - ANS✅✅The funds and assets invested in a business by the owners
Cash Basis of Accounting - ANS✅✅Method of accounting in which you recognize income when you
receive the cash and expense when you receive the bill
Accrual Basis of Accounting - ANS✅✅Method of accounting in which you match revenue with
expense regardless of when the cash may or may not be collected
Cash Flow Control - ANS✅✅A simple method of projecting your future needs for cash
Commodity Business - ANS✅✅A business for which you must have the lowest cost to survive
Contract - ANS✅✅A mutually binding legal relationship obligating the sell to furnish supplies or
services and the buyer to pay for them
, Corporation - ANS✅✅A group of persons granted a state charter legally recognizing them as a
separate entity having its own rights, privileges, and liabilities distinct from those of its members
Credit Rating - ANS✅✅A grade assigned to a business concern to denote the net worth and credit
standing to which the concern is entitled in the opinion of the rating agency as a result of its
investigation.
Debt Financing - ANS✅✅The provision of long term loans to small business concerns in exchange
for debt securities or a note.
Demographics - ANS✅✅The statistical data of a population, especially those showing average age,
income, education, etc.
Due Dilligence - ANS✅✅The overall process of evaluating a business opportunity including
examination of financial records
Earning Power - ANS✅✅The demonstrated ability of a business to earn a profit, over time, while
following good accounting practices.
Emerging Small Business - ANS✅✅A small business concern whose size is no greater than 50
percent of the numerical size standard applicable to the Standard Industrial Classification code
assigned to a contracting opportunity.
Employer Identification Number (EIN) - ANS✅✅Used to identify the tax accounts of employers,
sole proprietors, corporations, partnerships, and other entities.
Employment Taxes - ANS✅✅Federal income tax withholding, social security and Medicare taxes,
and federal unemployment tax.
Entrepreneur - ANS✅✅One who organizes, operates and assumes the risk in a business
Equity - ANS✅✅An ownership interest in a business
Equity Financing - ANS✅✅The provision of funds for capital or operating expenses in exchange for
capital stock, stock purchase warrants, and options in the business financed, without any guaranteed
return, but with the opportunity to share in the company's profits.
queries and answers graded A+
Annual Receipts - ANS✅✅"Receipts" means total income (or in the case of a sole proprietorship,
"gross income") plus "cost of goods sold" as these terms are defined and reported on Internal
Revenue Service tax return forms.
Business Plan - ANS✅✅A written outline that evaluates all aspects of your business.
Business Profile - ANS✅✅A type of definition that summarizes the important characteristics of the
business and helps to identify areas for improvement.
Calendar Tax Year - ANS✅✅12 consecutive months beginning January 1 and ending December 31.
Fiscal Tax Year - ANS✅✅12 consecutive months ending on the last day of any month other than
December, or a 52-53 week year.
Capital - ANS✅✅The funds and assets invested in a business by the owners
Cash Basis of Accounting - ANS✅✅Method of accounting in which you recognize income when you
receive the cash and expense when you receive the bill
Accrual Basis of Accounting - ANS✅✅Method of accounting in which you match revenue with
expense regardless of when the cash may or may not be collected
Cash Flow Control - ANS✅✅A simple method of projecting your future needs for cash
Commodity Business - ANS✅✅A business for which you must have the lowest cost to survive
Contract - ANS✅✅A mutually binding legal relationship obligating the sell to furnish supplies or
services and the buyer to pay for them
, Corporation - ANS✅✅A group of persons granted a state charter legally recognizing them as a
separate entity having its own rights, privileges, and liabilities distinct from those of its members
Credit Rating - ANS✅✅A grade assigned to a business concern to denote the net worth and credit
standing to which the concern is entitled in the opinion of the rating agency as a result of its
investigation.
Debt Financing - ANS✅✅The provision of long term loans to small business concerns in exchange
for debt securities or a note.
Demographics - ANS✅✅The statistical data of a population, especially those showing average age,
income, education, etc.
Due Dilligence - ANS✅✅The overall process of evaluating a business opportunity including
examination of financial records
Earning Power - ANS✅✅The demonstrated ability of a business to earn a profit, over time, while
following good accounting practices.
Emerging Small Business - ANS✅✅A small business concern whose size is no greater than 50
percent of the numerical size standard applicable to the Standard Industrial Classification code
assigned to a contracting opportunity.
Employer Identification Number (EIN) - ANS✅✅Used to identify the tax accounts of employers,
sole proprietors, corporations, partnerships, and other entities.
Employment Taxes - ANS✅✅Federal income tax withholding, social security and Medicare taxes,
and federal unemployment tax.
Entrepreneur - ANS✅✅One who organizes, operates and assumes the risk in a business
Equity - ANS✅✅An ownership interest in a business
Equity Financing - ANS✅✅The provision of funds for capital or operating expenses in exchange for
capital stock, stock purchase warrants, and options in the business financed, without any guaranteed
return, but with the opportunity to share in the company's profits.
