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CFSB Sales Professional 2021 > Mid-Term Study Guide > Flashcards

Mid-Term Study Guide Flashcards

This study guide is designed to test your knowledge and increase your confidence in the provided material.

1
Q

What are the FIVE key drivers of any business?

A

Cash, Assets, Profit, People, Growth

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2
Q

Money that can be accessed easily and immediately is called what?

A

Liquidity

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3
Q

A businesses _____ refers to how much cash the company currently has available.

A

Cash Position

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4
Q

____ is the difference between how much you make by selling goods and services and how much it costs to produce and sell them.

A

Profit

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5
Q

_____ is the difference between the revenues you generate and the expenses incurred to create them.

A

Profit

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6
Q

Cash In - Cash Out = _______

A

Cash Generated

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7
Q

What are three examples of a business’s assets?

A

Inventory, Employees, Property

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8
Q

The return or benefit of an asset divided by its cost is called what?

A

Return on Investment (ROI)

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9
Q

Return or Benefit / Investments or Cost = ______

A

Return on Investment (ROI)

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10
Q

Total revenue and net income can be found on a company’s _______.

A

Income Statement

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11
Q

What is an example of inorganic growth?

A

Mergers or Acquisitions

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12
Q

What is an example of organic growth?

A

Any internal growth: Hire/train new employees, open new location, introduce new products/services

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13
Q

What are a business’s primary source of revenue and cash flow?

A

Clients

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14
Q

This type of business can use their social security number as their FEIN.

A

Sole Proprietorship

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15
Q

What type of business has “members” instead of owners?

A

Limited Liability Company (LLC)

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16
Q

True or False: A Mutual Fund is a pool of moneys collected from many investors.

A

True

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17
Q

What type of IRA is most recommended for tax benefits?

A

(CORRECT ANSWER) Roth: Contributions are taxes now (while in lower tax bracket) and distributions are tax free.

—————

Traditional: Contributions are tax deductible but distributions are taxed as income.

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18
Q

What are three ways companies get and use cash?

A

Operating Activities
Investing Activities
Financing Activities

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19
Q

True or False: The Cash Flow of a business describes how much cash it will generate and spend?

A

True

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20
Q

Give two examples that CFSB Investments can offer a client to GROW their money.

A

Mutual Funds and Annuities

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21
Q

List the FIVE aces.

A 
Pains
Economics
Competition
Decision
Commitment
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22
Q

What ace might include this question: “If we do “BLANK” that we’ve spoken about today, on a scale of 1-10, what is the likeliness of this relationship continuing?”

A

Commitment

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23
Q

True or False: When delivering a USP in the aces process, you should first say “Let me tell you about our USP…”

A

False

24
Q

What is the difference between an S-Corp and a C-Corp?

A

C-Corps have double taxation whereas S-Corps do not

25
Q

In the sales process, what does it mean to “Recognize and Respond”?

A

Identify stalls (reasons why the client can’t commit) then transition to more conversation and a USP.

26
Q

The cash flow statement basic equation is:

A

Cash from/used in operating activities + cash from/used in investing activities + cash from/used in financing activities = net change in cash

27
Q

The statement of cash flows measures what?

A

Cash Generation

28
Q

The Balance Sheet formula is:

A

Assets = Liabilities + Equity

29
Q

The Income Statement measures _____.

A

Profitability

30
Q

Net Income / Shares of Common Stock = ?

A

Earnings Per Share (EPS)

31
Q

What are a company’s most important resource?

A

People: Employees and customers are two important stakeholders to any business.

32
Q

What ace might include this question: “Who are the key players? What’s important to them? Who’s against this?”

A

Decision

33
Q

Which ace might include this question: “Who else is in your industry?”

A

Competition

34
Q

Pre-Call Planning includes collection what?

A 
Basic Contact Info: Business Name, Phone #, Email, Website
Objective of the Call:
Type of Business:
Owner's Name:
Gatekeepers?
General Research on prospect
Competitors and what sets them apart
35
Q

List the five basic types of business entities.

A 
Sole Proprietorship
Partnership
C-Corp
S-Corp
Limited Liability Company (LLC)
36
Q

What are the advantages of a Sole Proprietorship?

A

Easy to form, operate and terminate

Simple taxation

37
Q

What are the disadvantages of a Sole Proprietorship?

A

Unlimited liability for company debts and liabilities

Lack of continuity - when owner dies so does company

38
Q

What are the advantages of a Partnership?

A

Easy to form

Simple taxation

39
Q

What are the disadvantages of a Partnership?

A

Unlimited liability

Lack on continuity if a partner leaves

40
Q

What are the advantages of a C-Corp?

A

Limited liability of shareholders,
Perpetual life,
Ease of stock transfer

41
Q

What are the disadvantages of a C-Corp?

A

More difficult to form
Double taxation
Potentially subject to accumulated earnings tax & AMT

42
Q

What are the advantages of a S-Corp?

A

Simple taxation method,
Limited liability for shareholders,
Perpetual life

43
Q

What are the disadvantages of a S-Corp?

A 
Limited number (100) of shareholders,
Only one class of stock,
Shareholders must be individuals/estates/certain trusts
44
Q

What are the advantages of a LLC?

A

No taxation at entity level,
Limited liability of owners (members),
Lack of ownership restrictions

45
Q

What are the disadvantages of a LLC?

A

No tax advantaged employee benefit plans,

All member income subject to employment taxes

46
Q

What are the two types of accounting methods:

A

Accrual Basis

Cash Basis

47
Q

Explain the Accrual Basis accounting method.

A

Recognizes revenues when earned and expenses when incurred.

48
Q

Explain the Cash Basis accounting method.

A

Recognizes revenues when payment is received and expenses when payment is made.

49
Q

List the Five Types of Company Financial Statements in order of costliness.

A 
Company prepared - ₵
Tax Returns - $
Compiled - $
Reviewed - \$\$
Audited - \$\$$
50
Q

What does “EBITDA” stand for?

A

Earnings before interest expense, income taxes, bad debt expense, depreciation and amortization

51
Q

USP stands for Unique Selling ________.

A

Proposition

52
Q

What does REIT stand for?

A

Real Estate Investment Trust

53
Q

When speaking to a client or prospect, asking them questions can help us uncover ________.

A

Pains

54
Q

After you have “planned” for a call, you should always do this before your meeting:

A

Ask for permission to speak with them/take some time via phone or in person conversation

55
Q

What is the 1031 Exchange?

A

The swap of one investment property for another

CFSB Sales Professional 2021 (1 decks)

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