Study sets, textbooks, questions
Upgrade to remove ads
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?
Total cost/ Product or service sales price
What is the formula for determining burn rate?
Monthly starting balance - Monthly ending balance
What is the formula for determining net profit?
Value of investment - Cost of investment
What is the formula for determining a return on investment (ROI)?
(Net profit / Cost of investment) x 100
When must real estate loans through Small Business Administration (SBA) be paid back?
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.
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?
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?
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
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
Helps fund a business or a specific project, usually for some kind of stake in the company
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.
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.
A(n) _______is a financial report that shows a company's assets, liabilities, and equity for a specific period.
_______ is the owner's remaining value after all liabilities have been deducted.
A(n) _______ statement, also known as a profit and loss statement, shows the total revenues and expenses for a specific period.
The ________ point is the amount of revenue required to cover expenses.
Other sets by this creator
Domain 1 Part 2
Domain 1: Entrepreneurial and Small Business Conce…
Recommended textbook solutions
Fundamentals of Financial Management, Concise Edition
Eugene F. Brigham, Joel Houston
Century 21 Accounting: General Journal
Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman
Fundamentals of Financial Management
Eugene F. Brigham, Joel F Houston
Essentials of Investments
Alan J. Marcus, Alex Kane, Zvi Bodie