Marketing Essentials

Unit 11: Entrepreneurship and Finance

Math Workout

1
You have decided to become an entrepreneur and start your own business. You have found investors who are willing to invest $100,000 in exchange for 20% of the profits. If the business grosses $132,000 in profits the first year and 25% more continuously for each year thereafter, how many years will it take for the investors to receive complete return on their investment.
A)1 year
B)4 years
C)3 years
D)5 years
2
An entrepreneur estimates that in the first year, his start-up business will make $284,000 in profits before subtracting salaries. His four employees were paid $54,000, $48,000, $36,000, and $27,000 respectively, and he has decided to reinvest $50,000 back into the business. The rest of the profits represent his salary for the year. If he worked an average of eleven hours a day, five days a week for fifty weeks of the year, what was his hourly wage?
A)$25 per hour
B)$18 per hour
C)$43 per hour
D)$24 per hour
3
A business continued to make a product that all of its competitors had discontinued as more technologically advanced products became more popular. In 1987 the company grossed $543,000 in profits, but now it holds just 2.4% of a $3.7 million market. How much lower is this year’s profit than it was in 1987?
A)16.4%
B)6.1%
C)83.6%
D)164%
4
You have decided to send your employees to a safety training session in order to help prevent on-the-job accidents. Six employees will go to a session for this entire 40-hour week and ten will go next week. The training will cost $220 per employee, and you also have to consider the cost of continuing to pay each employee their $11.23 hourly wage, even though they’re not working. In total, how much of an expense will it be to send the employees to the training session?
A)$21,414.40
B)$7,187.20
C)$17,894.40
D)$10,707.20
5
Total sales for a retail store were $343,200 last year. Four percent of this amount was lost to theft. Of that four percent, 53% was lost to shoplifting and 36% to robbery. The remaining amount was lost by employee theft. What was the total value of the items stolen by employees?
A)$1,510.08
B)$17,160.00
C)$4,942.08
D)$13,728.00
6
You are considering two similar locations for your new retail store. However, depending on which you choose, you will have to either buy or build a space for the store. Buying will cost you $100,000, and building will cost about $52,000 for the land and $77,000 to build. How much more expensive will it be to build?
A)77%
B)52%
C)29%
D)71%
7
An entrepreneur is creating a business plan before he hires the staff for his new retail store. He has calculated that there will be a $12,240 budget for manager and sales clerk salaries per month. He would like to hire 2 managers and as many sales clerks as possible. He plans to pay each manager 150% of what each sales clerk makes, and he plans for managers to work full time (40 hours a week). If sales clerks will make $8.50 and work half time (20 hours a week), how many sales clerks can he hire with this budget?
A)7
B)48
C)66
D)12
8
You borrowed $75,000 for your business, on which you paid 14% in interest. However, on that money you made $32,000, and improved your credit standing. In the end, how much did the business make by taking out this loan?
A)$64,500
B)$61,300
C)$96,500
D)$21,500
9
In order to determine your net worth, you have created a personal financial statement. You determine that your total assets include the following: real estate, $102,000; car, $14,000; bank accounts, $3,400; and stock market investments, $5,600. Your liabilities are as follows: credit cards, $2,300; mortgage, $54,000; and loan for your daughter’s education, $23,000. What is your net worth?
A)$106,000
B)$45,700
C)$125,000
D)$204,300
10
An employee at The Coffee House worked 35 hours one week and 38 hours the next week. She will have the following deductions from her total pay for the two weeks: 6.2% for Social Security, 1.45% for Medicare, 12% for Federal Income Tax, and 5% for State Income Tax. If her hourly wage is $8.55, what will her take-home amount be for the two weeks?
A)$241.70
B)$473.05
C)$154.75
D)$236.52
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