Livelihood Development for Human Rights Promotion (LIDFOHRP)

Multiple Choice questions: Encircle the letter of the correct answer

1. Who is entrepreneur?
a. Someone who invest time and money to start a business.
b. Someone who make a lot of money
c. Someone who takes a risk to make a profit
d. Both A and C
2. What is a business Idea?
a. Business ideas an idea or ideas that might be possible to transfer to income generation
activities for profit
b. Business ideas an idea or ideas that might not be possible to transfer to income generation
activities for profit
c. Both are correct
3. Capital is:
a. Money available to invest
b. Prohibitive cost of entry.
c. A guarantee that a company will be successful
d. A & B
4. The following are included in a business plan
a. Financial information, production plans, personnel policies
b. Goals of the business and how they will be achieve
c. All the above
5. What is financial literacy?
a. Financial literacy refers to individuals’ ability and knowledge to handle financial matters on both a
personal and professional level.
b. The ability of a person to manage big company funds
c. Financial literacy is special skills to manage a business in it collapsed state
6. What things could you change to adjust your profit?
a. Price
b. Number
c. Less expensive supply sources
d. All of the above
6. When counting change to return back to a customer, you should always give the
____________amount of coins possible
a. best
b. least
c. most
d. correct
7. What are the formal institutions to borrow or lend money from?
a. Banks
b. NGOs
c. Microfinance institutions
d. a & c only
8. Gross profit is the
a. Amount of money you get for profit lab
b. Amount of money collected from selling products
c. Amount of money your product costs to produce. Has nothing to do with money
9. Net profit is the:
a. Amount of money you get for profit lab
b. Amount of money collected from selling products
c. Amount of money your product costs to produce
d. Has nothing to do with money
10. To figure the Gross Profit:
a. Add up the ticket sales from selling day
b. Add up the ticket sales from selling day and subtract the cost of the ingredients
c. Add up cost to produce the product and subtract the total sales
d. Add the cost to produce the product and add the total sale