L3 Practice Part 2
Completion requirements
Unit F: Finance
Practice
Instructions: Click the Download File button to download a printable PDF of the questions. Answer each of the following practice questions on a separate piece of paper. Step by step solutions are provided under the Solutions tab.
You will learn the material more thoroughly if you complete the questions before checking the answers.
- Jules lives in a house with a mortgage. She has a suitable room to set up her salon. It has easy access to her backdoor, a bathroom, and the laundry room. She must renovate the room to meet the standards set for home businesses such as installing
a tile floor and a sink. Jules has found a contractor who will renovate the room for $5 000.00.
Before Jules can open her business, she needs to purchase a special chair for cutting hair, a chair for washing hair, and chairs for clients waiting for their appointments. Other accessories required are a full-length mirror, trolleys to hold her tools, and hair products for washing and styling hair. Jules estimates that she needs $1 000.00 to outfit her business.
In her research, Jules has discovered she must apply and pay for multiple permits and licenses. The cost of these is approximately $1 000.00. Also, she will purchase a computer and accounting software to record her business transactions, which will cost $700.00.
Determine Jules' start-up costs for her business.
Jules lives in a house with a mortgage. She has a suitable room to set up her salon. It has easy access to her backdoor, a bathroom, and he laundry room. She must renovate the room to meet the standards set for home businesses such as
installing a tile floor and a sink. Jules has found a contractor who will renovate the room for $5 000.00.
Before Jules can open her business, she needs to purchase a special chair for cutting hair, a chair for washing hair, and chairs for clients waiting for their appointments. Other accessories required are a full-length mirror, trolleys to hold her tools, and hair products for washing and styling hair. Jules estimates that she needs $1 000.00 to outfit her business.
In her research, Jules has discovered she must apply and pay for multiple permits and licenses. The cost of these is approximately $1 000.00. Also, she will purchase a computer and accounting software to record her business transactions, which will cost $700.00.
Determine Jules' start-up costs for her business.
Before Jules can open her business, she needs to purchase a special chair for cutting hair, a chair for washing hair, and chairs for clients waiting for their appointments. Other accessories required are a full-length mirror, trolleys to hold her tools, and hair products for washing and styling hair. Jules estimates that she needs $1 000.00 to outfit her business.
In her research, Jules has discovered she must apply and pay for multiple permits and licenses. The cost of these is approximately $1 000.00. Also, she will purchase a computer and accounting software to record her business transactions, which will cost $700.00.
Determine Jules' start-up costs for her business.
| Jules' start-up costs |
|
| Expense | Cost |
| renovation |
$5 000.00 |
| accessories |
$1 000.00 |
| permits and licenses |
$1 000.00 |
| computer and software |
$700.00 |
| Total | $7 700.00 |
The start-up cost includes the renovation, accessories, permits and licenses, computer and software.
Jules' start-up costs are $7 700.00.