Grade 11 ENTREPRENEURSHIP (BDI3C1)  

Budgeting Quiz

Name:

Part 1: Multiple Choice

Directions: Circle the BEST POSSIBLE ANSWER. Only circle ONE answer.

1 The first step to budgeting is…

A creating a budget
B assessing your personal and financial situation
C setting your goals
D going to the bank

2 A well-written goal SHOULD:

A be realistic
B be stated in specific and measurable terms
C have a time frame
D state the action to be taken
E     all of the above

3 A fixed expense is…

A an expense or cost that doesn’t change on a monthly basis

B something that you paid money to fix
C easy to change
D none of the above
 4 A variable expense is…

A not very common in most business settings today

B an expense or cost that can change on a monthly basis
C typically easier to change than a fixed expense
D both B and C

5 The “A” in the acronym SMART Goals stands for…

A Addressable
B A budget
C     Attainable
       D    None of the above

6 Mr. Valley’s average monthly income is $3,000. His monthly expenses are
$2,200. Which of the following is the most expensive item that he will he be able
to afford if he saves 50% of his Net Cash Flow?

A 2004 GMC Sierra off of Kijiji ($7,000)

B 65” LG Smart TV ($5,000)
C New MacBook ($3,000)
D All of the above

7 In the video “How to make $250k/year”, we learned that the everyday costs we
face are increasing at an alarming rate (up to almost 15%/year). According to an
index (study) in Australia, the average woman’s haircut was $8 in 1951. In 2012,
an average woman’s haircut was $63. That is an increase of…

NOTE: Round to the nearest percent!!

A 8%
B 55%
C 638%
D 788%
8 Using your answer from the question above, calculate the increase in price as a
percentage per year.

NOTE: Round to the nearest percent!!

A 13%/yr
B 10%/yr
C 1%/yr
D 12%/yr

9 Financial Literacy…

A is the knowledge that is necessary to make financial responsible decisions

B is only important to entrepreneurs and accountants  
C includes the understanding of how to avoid debt
D both A and C

10 An example of a variable cost is…

A Rent for the building the entrepreneur runs his or her business from
B The cost of office administration
C The cost of the land or property the business is located on
D The cost of materials that are needed to produce the product

11 If your utilities for the month (fixed cost) are 480 dollars, how much is this cost
per day. Assume 30 days in a month…

A 18
B 15
C 14
D 16

12 After you create a budget…

A you have become financially responsible and do not have to do anything else
B monitor your spending and compare your budget to what you have spent
C set personal and financial goals
D All of the above
Part 2: True and False

Directions: For each of the following statements, state whether it is true or

false. Write your answer in the blank space provided on the blank sheet. Use
either “T” for true or “F” for false.

13. Less than 5% of the population actually takes time to physically write down their goals.

14. The “S” and “M” in the acronym SMART Goals stand for “Specific” and “Measureable”.

15. The cost of living is going down.

16. A variable expense will go up every month.

17. The top three industries to go into if you want to make $250,000 per year are medicine
(doctor), money (real estate), and computers (software programming).

18. If you are currently spending more money than you make, you will never be able to create a
budget or save money.

19. Mr. Valley spends $1,000 per year on hockey equipment (sticks, tape, skates, etc). This is a
fixed expense that does not change on a monthly or annual basis.

20. “I want to be rich” is a SMART Goal.

Part 3: Short Answer

Directions: Choose ONE (1) of the following short answer questions. NOTE that
each questions is worth FIVE (5) marks. Write your answer in the blank space
below.

A. Explain the importance of financial literacy in your own words. Note

that you can use examples from class (videos, articles, handouts, etc).
You may choose to relate it to a person, a business, or both.

B. Outline the budgeting process (6 steps of budgeting).

C. Give an example of a SMART Goal and explain exactly why it is a

SMART Goal.
Answer Key: BUDGET Quiz

Question: Answer

1 B

2 E

3 A

4 D

5 C

6 C

7 D

8 A

9 D

10 D

11 D

12 B

 13 T

14 T

15 F

16 F

17 T
18 F

19 F

20 T