How to start a business test 3 review 2

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38 Questions - Developed by: Dan - Developed on: - 2.495 taken

Test 3 review 2

  • 1
    Which of these government loan programs to banks participate in?
    Debt and Asset loans only
    7(a) 504 CDC program loans only
    Small business administration loans only
    Small business administration, Debt and Asset loans, 7(a) 504 CDC program loans
  • 2
    Small business Investment companies are licensed by:
    Asset and Debt Loans
    504 CDC loans
  • 3
    Although banks may charge ___% per sale, it increases your business capability to service the customer and increase sales volume
  • 4
    Merchant Card Service Companies will be more or less expensive?
    More expensive
    Less Expensive
  • 5
    Possible hidden fees to be aware of are:
    Miscellaneous charges and restriction on purchases only
    Equipment charges only
    Nonrefundable application fees only
    Nonrefundable application fees, Equipment charges, discontinue service costs, miscellaneous charges, restriction on purchases
    Discontinue service costs only
  • 6
    Merchant account application fee:
    Setup fee:
    250, 150
    100, 200
    200, 100
    150, 250
  • 7
    Internet card and processing Software with Web Terminal fee
  • 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:
  • 9
    Programming charge:
    Shipping and handling:
    American Express setup fee:
    50, 35, 95
    95, 35, 50
    35, 95, 50
  • 10
    Average approval time for merchant card services:
    1 week to same day
    1 year to 1 month
    1 month to 1 week
  • 11
    True/False: Know your customer and their credit card preferences
  • 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, Amex, Visa/Mastercard
    Do, Visa/Mastercard, Amex
  • 13
    Usually each transaction fee has a percent of sale and a
    Variable transaction cost (1.51% + 10 cents)
    Fixed transaction cost (1.51% +10 cents)
    Fixed transaction cost (3.21%+15 cents)
    Variable transaction cost (3.21% + 10 cents)
  • 14
    Also, the same card company may have different transaction rates for different _____ of cards (Generally reward cards have a higher fee)
  • 15
    You should try not to accept _________ for small purchases
    Debit Cards
    Credit Cards
  • 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 and risk
  • 17
    Employee benefits may be _______ for small business owners
    Cost Variable
    Cost Prohibitive
    Cost Allocation
  • 18
    Agreements to protect the family or other beneficiaries
    Buy Sell Agreements
    Life Insurance
    Life Insurance and Buy Sell agreements
    Health Insurance
  • 19
    T/F: Every business is different (varying types of liabilities) and has different needs
  • 20
    Speak with your present _______
    Closest family member
    Insurance Agent
  • 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
    Insurance; liabilities
    Business; risk
    Business; liabilities
  • 22
    Compare prices for the same
    Insurance Agency
    Type of insurance
  • 23
    Generally cost less than individual types of coverage for property, liability, criminal coverage and special need business coverage
    Property and Liability Insurance
    Business Owners' Policy
    Health and Life Insurance
  • 24
    Two general categories of Business Insurance:
    Business Owner's Policy/Property Insurance and Life/Health Insurance
    Property/Life Insurance and Health/Liability Insurance
    Property/Liability Insurance and Life/Health Insurance
  • 25
    For claims brought against your business for injury to a customer or other person on business property
    General Liability
    Property damage Liability
    Location Liability
  • 26
    Damage to property you lease or rent or a customer’s property
    General Liability
    Location Liability
    Property damage liability
  • 27
    Protects premises, fixed assets and inventory
    General Liability
    Property Damage Liability
    Fire Insurance
  • 28
    Earthquake, Flood, Hurricane-Disaster premiums are
  • 29
    Protection against employee dishonesty
    Surety Bonds
    Boller and Machinery Coverage
    Fidelity Bonds
  • 30
    Monetary protection against a contractor failing to perform specific work within an agreed period of time
    Surety Bonds
    Fidelity Bonds
    Boller and Machinery Coverage
  • 31
    Protection against critical business equipment (computers, telephone, operational)
    Worker's Compensation
    Product Liability
    Boller and Machinery Coverage
  • 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
    Umbrella Insurance
    Boller and Machinery Coverage
    Product Liability
  • 33
    Coverage for employees injured, disabled, or becomes ill due to required work
    Worker's Compensation
    Umbrella Insurance
    Business Interruption Insurance
  • 34
    Payment approximately equal to earnings while building is under repair or rebuilding.
    Business Interruption Insurance
    Worker's Compensation
    Umbrella Insurance
  • 35
    Extra coverage, 1 million dollars, for an accident that can cause a catastrophe
    Vehicle Insurance
    Umbrella Insurance
    Workman's Compensation
  • 36
    Life Insurance is used for:
    Used to pay estate taxes and not disrupt the business or require the business to be sold to pay possible Estate taxes
    Protect your beneficiaries in case of death
    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)
    All of the above
    Protect a surviving business partner from automatic transfer to the deceased’s family
  • 37
    Be careful attempting to classify employees as __________ to avoid benefits or overtime pay
  • 38
    To be classified as a contractor, a person must:
    Have ability to set own hours and determine sequence of work only
    Furnish own tools and training and Be self employed or work with a leasing company only
    Be paid by the job and Have an opportunity for profit or loss 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
    Work off site and Work by the project rather than have a continuous relationship with the employer only

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