Title: Assessment
Course: Be the Boss - Starting Your Own Business

Q: A sole proprietor does not always need to register a DBA
- True
- False
A: True
If right: That is correct.
If wrong: That’s not correct. A Sole proprietor only needs to register a DBA if they name the company something other than their own name.

Q: All businesses with at least one employee beside you must have an EIN.
- True
- False
A: True
If right: That is correct.
If wrong: That's incorrect. 'All business with at least one employee beside you must have an EIN' is true.

Q: Cash flow can be defined as:
- Sales minus Cost of Goods Sold
- Moving cash in or out of a business
- Balance of cash received less the amount of cash paid out over a period of time
A: Moving cash in or out of a business; Balance of cash received less the amount of cash paid out over a period of time
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Moving cash in or out of a business Balance of cash received less the amount of cash paid out over a period of time

Q: Companies with online sales have specific business software needs.
- True
- False
A: True
If right: That is correct.
If wrong: That’s not correct. The correct answer is: True. Companies with online sales have specific business software needs.

Q: Early risk warning signs can be identified as:
- Accounting irregularities
- Lower competitor prices
- Lack of diversification
- Increase in rent price
- High debt to earnings ratio
- Lack of diversification
- Zoning laws
- Broken equipment
- High employee turnover
- SWOT Analysis
- Vendor closing
A: High debt to earnings ratio; Lack of diversification; High employee turnover
If right: That is correct.
If wrong: That’s not correct. The correct answer is: Accounting irregularities High debt to earnings ratio Lack of diversification High employee turnover

Q: Elements of a small business loan package are:
- Business plan
- Business financial statements
- Business tax returns
- Credit report
- Collateral
- Personal financial statements
- Personal tax returns
- Purchase agreements
A: Business plan; Business financial statements; Business tax returns; Credit report; Collateral; Personal financial statements; Personal tax returns; Purchase agreements
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Business plan Business financial statements Business tax returns Credit report Collateral Personal financial statements Personal tax returns Purchase agreements

Q: Examples of record keeping tools are:
- Manila folder
- Computer system
- File hosting system
A: Manila folder; Computer system; File hosting system
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Manila folder Computer system File hosting system

Q: For most small businesses, debt financing comes from owner or family savings and it is frequently the only source of funds for start-up small businesses.
- True
- False
A: True
If right: That is correct.
If wrong: That is incorrect. The correct answer is: True

Q: Good uses of cash flow projection are:
- Setting sales and expense goals
- Determining the break-even point for a business
- Tracking sales
- Planning equipment purchases
- Tracking liquidity
A: Setting sales and expense goals; Determining the break-even point for a business; Tracking sales; Planning equipment purchases; Tracking liquidity
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Setting sales and expense goals Determining the break-even point for a business Tracking sales Planning equipment purchases Tracking liquidity

Q: If you are self-employed and have not incorporated, which tax form would you use when you file your taxes?
- Form 1040, Schedule C or C-EZ
- Form 1065
- Form 1120S
- Form W2
A: Form 1040, Schedule C or C-EZ
If right: That is correct.
If wrong: That is incorrect. The correct answer is: 1040, Schedule C or C-EZ.

Q: Internet advertising
- must be truthful
- must have all claims include proof
- must honor requests for list removal
- is regulated by the FCC
A: must be truthful; must have all claims include proof; must honor requests for list removal
If right: That is correct.
If wrong: That is incorrect. The correct answer is: It must be truthful All claims must include proof Requests for list removal must be honored

Q: It is possible to create a business plan that identifies every risk your business might face.
- True
- False
A: False
If right: That is correct.
If wrong: That is incorrect. The correct answer is: False.

Q: Most business valuation methods are a combination of two factors.
- Revenue stream and assets
- Customer base and net worth
- Gross profit and assets
- Revenue stream and net worth
A: Revenue stream and assets
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Revenue stream and assets.

Q: Most business valuation methods are a combination of what two factors?
- Revenue stream and net worth
- Customer base and net worth
- Tax obligations
- Revenue stream and assets
- Gross profit and assets
A: Revenue stream and assets
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Revenue stream and assets.

Q: New businesses should start financial management with a(n) _______________________?
- Business credit card
- Budget
- Inventory purchase
- Profit and Loss Statement
A: Budget
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Budget

Q: Obtaining information on a consumer under false pretenses may cause you to be:
- Fined
- Imprisoned for up to two years
- Both fined and imprisoned for up to two years
A: Both fined and imprisoned for up to two years
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Both fined and imprisoned for up to two years.

Q: Public Relations can be described as
- One-way communication
- Media controls the timing
- Business determines the message
- An intention to generally inform the public
A: Media controls the timing; An intention to generally inform the public
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Media controls the timing Intention is to generally inform the public

Q: Reasons for good financial management are
- Helps to show which products or services are profitable
- Provides information on the size of a loan a business can afford
- Helps in deciding what inventory a business should purchase
- It's a tool for planning to reach new markets
A: Helps to show which products or services are profitable; Provides information on the size of a loan a business can afford; Helps in deciding what inventory a business should purchase; It's a tool for planning to reach new markets
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Helps to show which products or services are profitable Provides information on the size of a loan a business can afford Helps in deciding what inventory a business should purchase It’s a tool for planning to reach new markets

Q: Reasons for keeping good records are:
- Business detail tracking
- Planning
- Legal compliance
- Tax preparation
A: Business detail tracking; Planning; Legal compliance; Tax preparation
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Business detail tracking Planning Legal compliance Tax preparation

Q: Record keeping a good practice for which type(s) of small business
- Sole proprietor
- Partnership
- Corporation
A: Sole proprietor; Partnership; Corporation
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Sole proprietor Partnership Corporation

Q: Record keeping is the orderly and ____________________ practice of storing business records.
- Corporate
- Legal
- Financial
- Disciplined
A: Disciplined
If right: That is correct.
If wrong: That's not correct. The correct answer is: Disciplined.

Q: Registering a business name is performed on which of the following levels?
- Federal
- State or Local
- County
- Industry
A: State or Local
If right: That is correct.
If wrong: That is incorrect. State or local is the correct answer.

Q: Small business retirement plans are not currently recognized by the IRS.
- True
- False
A: False
If right: That is correct.
If wrong: That is incorrect. The correct answer is: False.

Q: Small business retirement plans are not recognized by the Internal Revenue Service (IRS).
- True
- False
A: False
If right: That is correct.
If wrong: That’s not correct. The correct answer is: False

Q: Sound bookkeeping is the basis for all financial management.
- True
- False
A: True
If right: That is correct.
If wrong: That is incorrect. The correct answer is: True

Q: Succession planning deals with the process of ___________.
- Determining a plan for your business over the next five years
- Identifying buyers for your business
- Passing control of your business to others
- Selling your business to family members
A: Passing control of your business to others
If right: That is correct.
If wrong: That’s not correct. The correct answer is: Passing control of your business to others.

Q: Succession planning deals with the process of which of the following?
- Settling obligations before closing the business
- Identifying potential buyers for your business
- Passing control of your business to another individual
- Determine a five year plan for your business
A: Passing control of your business to another individual
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Passing control of your business to another individual.

Q: The CAN-SPAM act covers
- Email messages must contain all business contact information
- Requests to be removed must be honored
- Emails that may not be sent through another person’s account
- Emails must include a message that they are an advertisement
- Emails that blatantly solicit are prohibited
- Businesses are not liable if a company sends spam on their behalf
- Emails must not falsify the transmission information
A: Requests to be removed must be honored; Emails that may not be sent through another person’s account; Emails must include a message that they are an advertisement; Emails must not falsify the transmission information
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Requests to be removed must be honored Emails may not be sent through another person’s account Emails must include a message that they are an advertisement Emails must not falsify the transmission information

Q: The Fair Credit Billing Act may require you to promptly process returns you accept from customers who had paid you using their credit card.
- True
- False
A: True
If right: That is correct.
If wrong: That's not correct. The correct answer is True. The Fair Credit Billing Act may require you to promptly process returns you accept from customers who had paid you using their credit card.

Q: The Fair Credit Reporting Act sets forth legal requirements for your business in all aspects of the credit reporting process, from furnishing credit information to an agency to using credit reports ordered from an agency.
- True
- False
A: True
If right: That is correct.
If wrong: That's not correct. The correct answer is True. The Fair Credit Reporting Act sets forth legal requirements for your business in all aspects of the credit reporting process, from furnishing credit information to an agency to using credit reports ordered from an agency.

Q: The main purpose of recordkeeping is to maintain legal compliance and prepare for taxes.
- True
- False
A: False
If right: That is correct.
If wrong: That’s not correct. The correct answer is: False. The main purpose of recordkeeping is to understand the health of your business.

Q: What are the primary taxes businesses pay?
- Income tax
- Self-employment tax
- State income tax
- Luxury tax
- Local taxes
A: Income tax; Self-employment tax; State income tax; Local taxes
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Income tax, Self-employment tax, State income tax, and Local taxes.

Q: What are the two basic accounting methods?
- Cash
- Debit
- Accrual
- Fiscal
A: Cash; Accrual
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Cash and Accrual.

Q: What is the basic formula for a profit and loss statement?
- + Sources of Cash
- Operating Uses of Cash
- Non-operating Uses of Cash
= Ending Cash
- + Sales
- Cost of Goods Sold
= Gross Profit
- Overhead
= Net Profit
- + Purchase Price
- Cost of Goods Sold
= Profit
- + Cash Flow
+ Cash Flow from Financing
+ Cash Flow from Investments
= Net Cash Flow
A: + Sales
- Cost of Goods Sold
= Gross Profit
- Overhead
= Net Profit
If right: That is correct.
If wrong: That is incorrect. The correct answer is: + Sales - Cost of Goods Sold = Gross Profit - Overhead = Net Profit

Q: What is the main determining factor regarding whether or not your business will need federal licenses?
- Size
- Years in Business
- Type
- DBA
- Location
A: Type
If right: That is correct.
If wrong: That is incorrect. The correct answer is: Type