Examination Number 06003400 YOUR LIFE IS YOUR BUSINESS When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam. Questions 1 to 20: Select the best answer to each question. 1. Assuming you own a home, where would the appraisal value of your home go in a personal balance sheet? A. Under liabilities B. Within the equity total C. Under assets D. Under both the equity and the liabilities sections 2. When you work within an organization, you're typically not taught to A. follow a supervised plan for managing your time. B. act as your own supervisor. C. act in ways that are derived from established procedures. D. identify yourself with your job or position. 3. When budgeting for your immediate needs, you should divide them into A. immediate and discretionary expenses. B. fixed and immediate expenses. C. discretionary and fixed expenses. D. fixed and intermittent expenses. 4. According to the discussion of the "color of money," blue money is A. money spent wisely. B. money set aside for emergencies and unexpected expenses. C. currently expended green money. D. invested for the long term.
5. In ancient Greece, a group of people living together with the common purpose of taking care of each other through economic activity was called a(n) A. household. B. commune. C. economy. D. community. 6. In thinking about the "color of money," which color would correspond to a DVD player charged on a department store credit card? A. Blue B. Green C. Red D. Gray 7. As you do your when considering a business venture, you should consider factors such as your financial resources, your special skills, where you live, and what you like to do with your time. A. evaluating B. creative thinking C. marketing and production D. planning 8. You're in search of the job that will give you a sense of self-esteem and allow you to employ your skills. Which among the four general types of life goals are you mainly pursuing? A. Establishing your values B. Establishing primary relationships C. Seeking your ideal social place D. Surviving in the jungle of competition 9. You're in the process of setting up a business plan. In particular, you're thinking about how to work your plan. You need to focus on two process considerations. The first concerns organization of the business; the second concerns the operations of the business, such as A. deciding who will do what and when. B. contacting potential investors. C. working out a pricing scheme.
D. thinking out your mission statement. 10. In working out your plan for pricing your products, you decide to keep your prices at about the same level as similar businesses in adjoining states. This could best be described as a approach. A. skimming B. simple comparison C. market penetration D. competitive 11. You've decided to capitalize your new business through a bank loan and through offering stock to a limited number of investors. Your initial funding will A. include equity and start-up financing. B. consist of debt financing through investors. C. consist of personal and public equity financing. D. include debt and equity financing. 12. In this study unit, you were encouraged to create a graphic representation of how you spend your time over 24 hours. It suggested using different colors to indicate your level of A. interest. B. anxiety. C. detachment. D. effort. 13. As you manage your personal finances, you'll probably want to pay attention to general conditions in the economy. One general concern for most people managing their day-to-day finances would be A. current interest rates. B. the international labor market. C. good deals in major real estate ventures. D. the likelihood of a major depression.
14. An entrepreneur estimating costs for a new business tends to avoid looking at the A. cost of capital equipment. B. escalating costs of raw materials. C. inevitability of things going wrong. D. costs associated with hiring personnel. 15. As a bank loan officer looks over your business plan, which of the following statements is most likely to get more of her careful attention when she considers the progress your business will make? A. Your cash flow projection B. Your most recent balance sheet C. Your personal financial statement D. Your current income statement 16. When researching your prospective business, you must know your product and your A. sales pitch. B. interests. C. customer. D. skills. 17. Because consumers today are presented with so many choices, it's generally best if your advertising is A. persistent to the point of being annoying. B. targeted to the demographic profile of the potential customer. C. consistent with your highest values. D. imaginative and amusing enough to get a person's attention. 18. You've decided that you want to get your household budget under control so you can increase the proportion of money you devote to savings. Your first step will be to A. check out wise investments. B. open a savings account. C. think about how you most enjoy spending your time. D. keep track of your expenses for a period of time. 19. In the most basic terms, while working out the business process of production and marketing, you'll want to be continually prepared for
A. finding innovative ways to reduce expenses. B. locating new blood to replace employees who don't work out. C. balancing growth against the need for increasing your profits. D. adapting to new conditions in the market and within your organization. 20. Prior to opening your new gift shop, you'll want to locate dependable suppliers before completing the process. A. research B. planning C. operations D. creative thinking