The most common and biggest mistake made by entrepreneurs is not having sufficient money.
True False
The primary reason to prepare a business plan before you begin is to create a tool to deal with investors and financing sources.
True False
In preparation of financial projections for your business plan, it is as important to estimate long range sales and earnings as it is to project short-term objectives.
True False
Pre-employment screening is of greatest importance when you're starting out.
True False
Self Insurance is an acceptable cost-saving strategy for a start-up business.
True False
When you lease a space for an office, retail store or warehouse, how do you protect yourself from being tied into a lease even if you have outgrown the space?
Become personal friends with your landlord. Plan to add space if necessary at a remote location. Plan to sublease your premises and relocate to larger quarters. Provide for this contingency in your lease.
In the cash basis of accounting, you match revenue with expense regardless when the cash may or may not be collected.
True False
Personal liability for a business loan can be avoided by organizing the business as a corporation.
True False
The use of the Internet for conducting e-business will assure me of competing favorably with large established competitors paying rent on a store.
True False
In buying a business, it is usually recommended to purchase the stock of the business rather than the assets of the business.
True False
If you are planning to open a doughnut shop, it would be a good marketing strategy to sell ice cream during the summer when the doughnut business slows down.
True False
If your cash flow projection indicates a negative cash flow six months down the line, the FIRST remedy would be to:
Attempt to sell the business. Begin looking for alterative business opportunities. Bring your cash flow projection back into "positive" by increasing sales, cutting costs and obtaining financing.
