If Tara invests $10,000 at 5% interest for 5 years, what will her earnings be at the end of the 5 years? Select one: a.$12,500.00 b.$607.75 c.$2762.81 d.$500.00   Question 2 Question text

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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If Tara invests $10,000 at 5% interest for 5 years, what will her earnings be at the end of the 5 years?
Select one:
a.$12,500.00
b.$607.75
c.$2762.81
d.$500.00
 

Question 2

Question text

To express ROI as a percentage, multiply the result of the calculation by _____.
Select one:
a.10
b.100
c.200
d.1000
 

Question 3

Question text

Which of the following is an example of a limited partnership?
Select one:
a.Noah and Evan own a used-book store. When the company loses money, the two share the losses equally.
b.Kate is the sole owner of her lawn care company. At the end of each business year, she pays all of the taxes on her profits.
c.Leah runs a graphic design corporation but has two partners who each own 5 percent of the company. She pays personal income taxes, and her partners pay taxes in proportion to their ownership.
d.Sean and Maya are partners in a family business. At the end of the business year, they can declare their losses as a tax deduction, and are protected from personal liabilities.
 

Question 4

Question text

Seed capital is
Select one:
a.a one-time expense used to start a business.
b.the money used to pay back the start-up investment.
c.the variable cost of a product.
d.also known as EOU.

Question 5

Question text

What is one of the benefits of obtaining a sales and use tax registration number?
Select one:
a.It will allow you to buy products at wholesale price.
b.It will provide you with a tax shelter if you incur losses.
c.It acts as a Social Security number for your company.
d.It allows you to avoid paying state sales taxes.
 

Question 6

Question text

Which of the following is an example of a fixed cost?
Select one:
a.The cost of creating products
b.Sales commissions
c.The price of the products being sold
d.Employee salaries
 

Question 7

Question text

Overhead is another term for _____.
Select one:
a.seed capital
b.net costs
c.fixed operating costs
d.salaries
 

Question 8

Question text

What are the two steps in making a cash flow projection?
Select one:
a.projecting cash receipts and subtracting expected cash expenses
b.projecting expected cash expenses and subtracting inventory cost
c.projecting receipts and paying bills before they are due
d.projecting expected cash expenses and subtracting cash receipts
 

Question 9

Question text

LLC stands for _______.
Select one:
a.Limited Liability Company
b.Limited Legal Corporation
c.Liable Litigation Corporation
d.Liable Limited Company
 

Question 10

Question text

Jared analyzed the income statement for his independent label and found that for every dollar of sales, 30 cents was spent on cost of goods sold. The gross profit per dollar was 70 cents. If 20 cents were spent on operating costs and 10 cents on taxes, what is the net profit per dollar?
Select one:
a.60 cents
b.30 cents
c.40 cents
d.50 cents
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