How to start a business test 3 review 2

Developed by: Dan

Test 3 review 2

Question 1: Which of these government loan programs to banks participate in?

	Debt and Asset loans only
	Small business administration loans only
	7(a) 504 CDC program loans only
	Small business administration, Debt and Asset loans, 7(a) 504 CDC program loans

Question 2: Small business Investment companies are licensed by:

	Asset and Debt Loans
	SBA
	504 CDC loans

Question 3: Although banks may charge ___% per sale, it increases your business capability to service the customer and increase sales volume

	2-4
	3-5
	7-8

Question 4: Merchant Card Service Companies will be more or less expensive?

	N/A
	More expensive
	Less Expensive

Question 5: Possible hidden fees to be aware of are:

	Discontinue service costs only
	Nonrefundable application fees, Equipment charges, discontinue service costs, miscellaneous charges, restriction on purchases
	Equipment charges only
	Miscellaneous charges and restriction on purchases only
	Nonrefundable application fees only

Question 6: Merchant account application fee: Setup fee:

	150, 250
	250, 150
	100, 200
	200, 100

Question 7: Internet card and processing Software with Web Terminal fee

	495
	300
	95
	50

Question 8: Checks by web, phone, and fax Allows you to accept checks via the Internet, phone, or fax Build a web shopping cart These all cost around:

	$95
	$495
	$300
	$50

Question 9: Programming charge: Shipping and handling: American Express setup fee:

	50, 35, 95
	35, 95, 50
	95, 35, 50

Question 10: Average approval time for merchant card services:

	1 week to same day
	1 year to 1 month
	1 month to 1 week

Question 11: True/False: Know your customer and their credit card preferences

	False
	N/A
	True

Question 12: All credit card companies do or do not typically charge the same? ________ Typically has a higher fee than ________

	Do not, Visa/Mastercard, Amex
	Do not; Amex, Visa/Mastercard
	Do, Visa/Mastercard, Amex
	Do, Amex, Visa/Mastercard

Question 13: Usually each transaction fee has a percent of sale and a

	Variable transaction cost (3.21% + 10 cents)
	Fixed transaction cost (3.21%+15 cents)
	Fixed transaction cost (1.51% +10 cents)
	Variable transaction cost (1.51% + 10 cents)

Question 14: Also, the same card company may have different transaction rates for different _____ of cards (Generally reward cards have a higher fee)

	Rates
	Locations
	Classes

Question 15: You should try not to accept _________ for small purchases

	Credit Cards
	Debit Cards
	Checks
	Cash

Question 16: The need for Insurance today has been heightened today with the predisposition toward lawsuits and the ever increasing potential for tragic events increasing the __________ for business owners

	Liability
	Liability and risk
	Confusion
	Risk

Question 17: Employee benefits may be _______ for small business owners

	Cost Prohibitive
	Cost Allocation
	Cost Variable

Question 18: Agreements to protect the family or other beneficiaries

	Health Insurance
	Buy Sell Agreements
	Life Insurance
	Life Insurance and Buy Sell agreements

Question 19: T/F: Every business is different (varying types of liabilities) and has different needs

	False
	True
	N/A

Question 20: Speak with your present _______

	Closest family member
	Employer
	Insurance Agent

Question 21: Be specific in explaining your type of _____ you have and identify specific ________ (insurance) before meeting with your agent or shopping other insurance companies

	Insurance; risk
	Business; risk
	Insurance; liabilities
	Business; liabilities

Question 22: Compare prices for the same

	Protection
	Type of insurance
	Insurance Agency

Question 23: Generally cost less than individual types of coverage for property, liability, criminal coverage and special need business coverage

	Health and Life Insurance
	Property and Liability Insurance
	Business Owners' Policy

Question 24: Two general categories of Business Insurance:

	Business Owner's Policy/Property Insurance and Life/Health Insurance
	Property/Liability Insurance and Life/Health Insurance
	Property/Life Insurance and Health/Liability Insurance

Question 25: For claims brought against your business for injury to a customer or other person on business property

	Property damage Liability
	General Liability
	Location Liability

Question 26: Damage to property you lease or rent or a customer’s property

	General Liability
	Property damage liability
	Location Liability

Question 27: Protects premises, fixed assets and inventory

	Property Damage Liability
	Fire Insurance
	General Liability

Question 28: Earthquake, Flood, Hurricane-Disaster premiums are

	High
	Average
	Low

Question 29: Protection against employee dishonesty

	Fidelity Bonds
	Boller and Machinery Coverage
	Surety Bonds

Question 30: Monetary protection against a contractor failing to perform specific work within an agreed period of time

	Boller and Machinery Coverage
	Surety Bonds
	Fidelity Bonds

Question 31: Protection against critical business equipment (computers, telephone, operational)

	Boller and Machinery Coverage
	Worker's Compensation
	Product Liability

Question 32: Claims against your product (after it happens at your place of business) even if used incorrectly. Premiums based on volumes of sale and degree of hazard

	Boller and Machinery Coverage
	Umbrella Insurance
	Product Liability

Question 33: Coverage for employees injured, disabled, or becomes ill due to required work

	Business Interruption Insurance
	Worker's Compensation
	Umbrella Insurance

Question 34: Payment approximately equal to earnings while building is under repair or rebuilding.

	Umbrella Insurance
	Business Interruption Insurance
	Worker's Compensation

Question 35: Extra coverage, 1 million dollars, for an accident that can cause a catastrophe

	Umbrella Insurance
	Vehicle Insurance
	Workman's Compensation

Question 36: Life Insurance is used for:

	Used to establish survivor/retirement funds for partners or their family cover Key employees Health Insurance-Is and has been a major issue for small businesses, expensive (Trade Associations or EDC may help)
	Used to pay estate taxes and not disrupt the business or require the business to be sold to pay possible Estate taxes
	All of the above
	Protect a surviving business partner from automatic transfer to the deceased’s family
	Protect your beneficiaries in case of death

Question 37: Be careful attempting to classify employees as __________ to avoid benefits or overtime pay

	Contractors
	Sub-Contractors
	Beneficiaries

Question 38: To be classified as a contractor, a person must:

	Work off site and Work by the project rather than have a continuous relationship with the employer only
	Furnish own tools and training and Be self employed or work with a leasing company only
	Have ability to set own hours and determine sequence of work only
	Have ability to set own hours and determine sequence of work Work off site Work by the project rather than have a continuous relationship with the employer Be paid by the job Have an opportunity for profit or loss Furnish own tools and training Be self employed or work with a leasing company
	Be paid by the job and Have an opportunity for profit or loss only

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