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Entrepreneurship Final Exam Review

Review 1

Question: Is health insurance required in NYS?
Answer: NO

Question: This type of insurance is paid in the event the policy holder dies.
Answer: Life Insurance

Question: What type of insurance is required by all employers in NYS?
Answer: Workers Compensation

Question: If someone is hurt by a defective product, what type of insurance will protect the company involved?
Answer: Casualty Insurance

Question: What is the legally binding contract between co-owners of a business that explains what would happen if a co-owner were to die or leave the business.
Answer: Buy/Sell Agreement

Review 2

Question: FMLA stands for.....
Answer: Family Medical Leave Act - covers health insurance for 3 months if a worker is on sick leave.

Question: What law sets guidelines on workplace safety?
Answer: OSHA - Occupational Safety & Heath Administration

Question: The EEOC (Equal Economic Opportunity Commission) requires.......
Answer: Fair hiring, firing and promotions to employees.

Question: What does the SEC (Securities and Exchange Commission) regulate?
Answer: Sale of stocks & bonds

Question: Complete the blank in the following sentence.
Your insurance policy ________________ the risk to the insurance company.
Answer: Transfers

Review 3

Question: Property you forfeit if you do not pay your loan is called.........
Answer: Collateral

Question: When an asset loses its value, it is called...........
Answer: Depreciation

Question: What is the original amount of money you borrow from the bank called?
Answer: Principal

Question: The difference between what consumers want & need and what resources are available is called....
Answer: Scarcity

Question: Explain the demand curve.
Answer: As price increases, demand for a product decreases.
As price decreases, demand for a product increases.

Review 4

Question: Market research is performed to determine what customers will buy. True or False
Answer: True

Question: What is the #1 failure of small business?
Answer: Death by a partner

Question: An agreement to sell a parent company's product in a designated area is known as.......
Answer: A franchise

Question: When contacting an insurance agent about a claim, what is the first thing the agent will want to know?
Answer: Who was negligent?

Question: What type of loan is it when someone (maybe a friend/family member) lets you borrow money for a share in the business profits?
Answer: Equity Capital

Review 4

Question: What is the difference between assets & liabilities?
Answer: Assets are items of value that you own.
Liabilities are considered money owed to someone else.

Question: What industry uses raw materials to produce products that will be sold in the marketplace?
Answer: Manufacturing

Question: Erin buys a jacket for $21.90, because there is a button missing she receives 15% off discount. She also has to pay a 7% tax on the subtotal after her discount. How much does Erin pay for the jacket?
Answer: $19.97

$21.90 x .15 = $3.29
$21.90 - $3.29 = $18.61
$18.61 x .07 = $1.30
$18.61 + $1.30 = $19.97

Question: What 2 forms of business ownership are protected by limited liability?
Answer: LLC & Corporation

Question: Working off your competitors flaws allows you to take a........
Answer: Competitive Advantage