21st Century Student FinLit -Getting Personal SW

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Are You Financially Literate? Chapter 12 Quiz 1. Which of the following skill sets should a small business owner develop to increase the

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probability of success? a. money management

c. marketing

b. information technology

d. all of the above

2. A business plan contains, _________, among other things. a. revenue targets

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c. daily to-do lists for all employees

b. marketing materials d. annual tax returns 3. Imagine that you want to start a business. You have saved and borrowed money, but you want immediate name recognition, a business operating system, and a product that is already proven and successful. Is there a type of business that best meets your needs? If so, identify and describe that type of business. _ ____________________________________________________________________ _ ____________________________________________________________________ _ ____________________________________________________________________ 4. Leland wanted to become a small business owner, so he opened a restaurant. He set his restaurant up as a sole proprietorship. After some time, Leland closed his restaurant because he wasn’t making enough money. Leland’s restaurant owes suppliers and employees money, he isn’t concerned about having to repay it because he says he isn’t personally liable for the debts of his restaurant. Is Leland correct in believing this? If not, why? _ ____________________________________________________________________ _ ____________________________________________________________________ 5. T F Owning a business may provide an income stream, but it is not an investment. 6. Norma just started a small home-based business. She wrote a business plan, developed marketing materials, and made a budget. Now she’s trying to build a website, but she’s having a lot of problems! She can’t get important aspects of her website to work, and she is losing customers quickly because of it. What should Norma do? a. take a 6 month class on web design b. change her business plan heavily so that she no longer relies on her website to get customers c. put her business up for sale d. hire a website designer PRODUCT PREVIEW

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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 235

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