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DASHBOARD COURSE COURSE QUIZZES ASSIGNMENTS REPORTS Ur

Quiz: FC_ENG_L6-SET 2
You scored 73%.
73%

Question Results
You scored 1 of 1

Question 1 : Which of the following costs does an entrepreneur incur before starting a business?
Select the correct answer.
Options:

Fixed Costs

Startup Costs

Running Costs

Variable Costs

Solution :
An entrepreneur has to incur startup costs before starting a business.
SOURCE: VIDEO: Cost Structure

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You scored 2 of 2

Question 2 : If you are drawing up the financial plan for your upcoming bakery, which of the following would be your fixed costs for
running the bakery?
Select the two correct answers.
Options:

Dough

Electricity

Salaries

Oven Trays

Solution :
Electricity and salaries are the fixed costs here, as they need to be paid every month.
SOURCE: VIDEO: Cost Structure

You scored 0 of 3

Question 3 : For your bakery business, identify the variable costs from the options given below.
Select the two correct answers.
Options:

Dough

Electricity

Water
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Salaries

Oven Trays

Solution :
For your bakery business, dough and oven trays are the variable costs, as these are likely to vary from one month to another.
SOURCE: VIDEO: Cost Structure

You scored 1 of 1

Question 4 : After the completion of her work, an architect requests permission to display her company’s contact details at Sally’s spa.
Sally agrees but asks the architect to pay a certain amount for using her space for promotion. What type of revenue is
Sally collecting here?
Select the correct answer.
Options:

Usage Fee

Licensing Fee

Subscription Fee

Advertising Fee

Solution :
Sally is collecting Advertising fee here. Advertising fee is when a company charges another brand owner for using its channel to advertise for th
brand.
SOURCE: VIDEO: Revenue Streams

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You scored 1 of 1

Question 5 : Sal lets his friend Raghu use his library during the night for his voice-over recordings. Raghu agrees to pay him every
month for the space. What type of revenue is Sal collecting from Raghu?
Select the correct answer.
Options:

Subscription Fee

Asset Sale

Lending/Leasing/Renting

Licensing

Solution :
The revenue that Sal earns from Raghu belongs to the Lending/Leasing/Renting type where Raghu pays money to use Sal’s space during the
night for his voice-over recordings.
SOURCE: VIDEO: Revenue Streams

You scored 1 of 1

Question 6 : For his lending library business, Sal decides on premium charges for best-sellers. Which pricing strategy is he following?
Select the correct answer.
Options:

Bundle Pricing

Maximization

Market Penetration
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Market Skimming

Solution :
Sal’s pricing strategy is Maximization, where a company determines the price and product output level that generates the maximum profit.
SOURCE: VIDEO: Pricing

You scored 1 of 1

Question 7 : Ken estimates a startup cost of $2,000 for his hot dog store. His monthly fixed costs are $200, and his variable costs per
hot dog would be $5. He has priced his hot dogs at $10 per piece and expects approximately 20 customers per day.
Assuming that each customer would buy only one hot dog, what would be his estimated profit/loss per month at the end
of 6 months?
Select the correct answer.
Options:

Ken would be making an estimated profit of $800 per month.

Ken would be making an estimated loss of $2,800 per month.

Ken would be making an estimated profit of $2,800 per month.

Ken would be making an estimated loss of $100 per month.

Solution :
Ken would be making an estimated profit of $2,800 at the end of 6 months. This is the revenue that is left after deducting the fixed and variable
costs from Ken’s total revenue.
SOURCE: Student Handout: Check the Profitability of Your Business Idea

You scored 0 of 1

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Question 8 : What minimum information does an entrepreneur need to calculate the payback period?
Select the correct answer.
Options:

Fixed Costs, Startup Costs, and Revenue

Fixed Costs, Startup Costs, Variable Costs, and Revenue

Fixed Costs, Startup Costs, Variable Costs, Revenue, and Contribution

Fixed Costs, Startup Costs, and Variable Costs

Solution :
The minimum information that an entrepreneur needs to calculate the payback period are Fixed Costs, Startup Costs, and Variable Costs.
SOURCE: Student Handout: Check the Profitability of Your Business Idea

You scored 2 of 2

Question 9 : Which of the following bootstrapping options can an entrepreneur explore after using up his/her own savings?
Select the two correct answers.
Options:

Ask the family to lend some money

Approach a venture capital company for funding

Approach angel investors for equity-based funding

Ask for trade credit from the suppliers

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Solution :
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After using up his/her savings, an entrepreneur can look at the following bootstrapping options:
· Ask the family to lend some money
· Ask for trade credit from the suppliers

SOURCE: VIDEO: Bootstrapping - Sources and Uses of Funds

You scored 2 of 2

Question 10 : You are planning to start an event management company, but you don’t have enough money. You decide to approach
your father for some money. As a best practice, what should you clarify before asking for money?
Select the two correct answers.
Options:

Add a surplus amount to your requirement before you ask

State the milestone for which you need this amount, e.g., first three months

Sugarcoat the risks involved so as not to raise alarms

Communicate the business plan and all risks upfront

Solution :
As a best practice, you should clearly state the milestone for which you need this amount, e.g., first three months. You should also avoid asking
for more than what you need and rather than merely giving your word on the terms and conditions of repayment, you should draw a formal
agreement stating the same. You should also communicate the business plan and risks upfront.
SOURCE: VIDEO: Bootstrapping - Sources and Uses of Funds

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