Upgrade to remove ads
Only $35.99/year

Entrepreneurship & Small Business V2 Exam Domain 4

Terms in this set (27)

What is the formula for determining income tax expense?
Income tax expense=
Gross profit x Tax rate
What is the formula for determining a break-even point?
Break-even point=
Total cost/ Product or service sales price
What is the formula for determining burn rate?
Burn rate=
Monthly starting balance - Monthly ending balance
What is the formula for determining net profit?
Net profit=
Value of investment - Cost of investment
What is the formula for determining a return on investment (ROI)?
ROI =
(Net profit / Cost of investment) x 100
When must real estate loans through Small Business Administration (SBA) be paid back?
25 years
Fixed costs change depending on the value of production. True or False
False; Fixed costs remain the same regardless of the volume of production
What is the formula for determining gross profit?
Gross profit =
Income - Cost of goods
An operating budget is a projection of ______ and expenses for a specified period such as a quarter or a year.
revenues
What is the formula for determining run rate?
Current revenue for one month x 12
What is the formula for selling prices?
Selling price =
(Cost x Desired profit margin) + Cost
What is the formula for determining equity?
Equity =
Assets - Liabilities
What is the formula for determining net income?
Net income =
Income - Cost of goods sold - Expenses
What is the formula for determining ending cash balance?
Ending cash balance =
Total cash - Total costs
When must equipment and inventory loans through the Small Business Administration (SBA) be paid back?
10 years
Which are eligibility requirements for a Small Business Administration (SBA) grant? Choose three answers.
1. The company must do business within the United States or its territories.
2.The owners must have responsible owner equity to investment.
3.The business must operate for profit.
Small Business Administration (SBA) Grants
Free money given to small business owners to help with the launching and development of their business. They do not have to be paid back
Crowdfunding
Sharing a startup business on an online platform where one can pre-sell products. The money from the pre-sale orders can be used as capital to build the products
Small Business Administration (SBA) Loans
Loans must be paid back with interest. The maturity terms differ depending on the type of loan
Investor
Helps fund a business or a specific project, usually for some kind of stake in the company
Bootstrapping
An owner uses their own savings to fund the business
A(n) ______ refers to the net profit the company wants to make from the sale and is usually represented using a percentage.
Profit Margin
A(n) _______ price represents how much money it costs a business to make or obtain the products or how much it costs a business to perform the service.
cost
A(n) _______is a financial report that shows a company's assets, liabilities, and equity for a specific period.
Balance sheet
_______ is the owner's remaining value after all liabilities have been deducted.
Equity
A(n) _______ statement, also known as a profit and loss statement, shows the total revenues and expenses for a specific period.
Income
The ________ point is the amount of revenue required to cover expenses.
break-even
Other sets by this creator