Question 1

What does a trade-credit effectively amount to?

Accepted Answer

A) Higher accounts payable. 
B) Higher trust among companies in the same industry. 
C) A loan to the entrepreneur's working capital. 
D) Debt swaps. 
E) None of the above 
A) Higher accounts payable. 
B) Higher trust among companies in the same industry. 
C) A loan to the entrepreneur's working capital. 
D) Debt swaps. 
E) None of the above

Question 2

Accounts receivable represents liquid working capital that can be obtained prematurely without cost

Accepted Answer

A) True 
 B)False

Question 3

The basis of all receivables and collections is actual net sales, which is equal to ______.

Accepted Answer

A) sales minus any returns. 
B) sales plus any returns. 
C) sales minus returns only if they are 90 days late. 
D) sales plus returns only if they are 90 days late. 
E) None of the above 
A) sales minus any returns. 
B) sales plus any returns. 
C) sales minus returns only if they are 90 days late. 
D) sales plus returns only if they are 90 days late. 
E) None of the above

Question 4

What are the advantages of trade credit over other sources of financing?

Accepted Answer

@#LAT-DLM&The first advantage is convenience: trad

Question 5

The magnitude of a company's accounts receivable obviously depends upon a number of factors, except _________.

Accepted Answer

A) the level and the pattern of sales 
B) the breakdown between cash and credit sales 
C) the difference between current assets and current liabilities 
D) the nominal credit terms offered 
E) the enforcement of credit terms 
A) the level and the pattern of sales 
B) the breakdown between cash and credit sales 
C) the difference between current assets and current liabilities 
D) the nominal credit terms offered 
E) the enforcement of credit terms

Question 6

Home equity lines of credit are the only way in which entrepreneurs provide funding for their businesses.

Accepted Answer

A) True 
 B)False

Question 7

From an ongoing perspective, the company's new ratio might be more indicative of liquidity than either the current ratio or the quick ratio.

Accepted Answer

A) True 
 B)False

Question 8

The bank discount method is common in ______.

Accepted Answer

A) short-term business loans 
B) long-term business loans 
C) financing from customer prepayments 
D) collateral appraisal 
E) insurance 
A) short-term business loans 
B) long-term business loans 
C) financing from customer prepayments 
D) collateral appraisal 
E) insurance

Question 9

When paying for working capital shortfalls, entrepreneurs look for short-term cash at the lowest possible rates.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following requirements apply with an SBA loan

Accepted Answer

A) The loan must purchase items made in the USA 
B) The venture's debt to equity ratio must be less than or equal to 3:1 post loan 
C) The loan cannot be used for leasehold improvements 
D) None of the above. 
A) The loan must purchase items made in the USA 
B) The venture's debt to equity ratio must be less than or equal to 3:1 post loan 
C) The loan cannot be used for leasehold improvements 
D) None of the above.

Question 11

Discuss the importance of the cash collection cycle in terms of your ventures growth model.

Accepted Answer

@#LAT-DLM&It is clear now that working capital req

Question 12

Discuss the importance of forecasting cash flow requirements as it pertains to working capital.

Accepted Answer

@#LAT-DLM&It is commonly heard that many entrepren

Question 13

A routine condition which could cause an entrepreneur to regularly factor his/her accounts receivables could be ____

Accepted Answer

A) To buy out an existing partner's equity 
B) To compensate for large, predictable, fluctuations in seasonal demand. 
C) To reduce current assets on the balance sheet 
D) None of the above. 
A) To buy out an existing partner's equity 
B) To compensate for large, predictable, fluctuations in seasonal demand. 
C) To reduce current assets on the balance sheet 
D) None of the above.

Question 14

An entrepreneur only requires enough cash to cover needs under the most likely scenario he/she has forecasted.
s

Accepted Answer

A) True 
 B)False

Question 15

Companies with a negative cash conversion cycle will see their working capital requirements increase with growth.

Accepted Answer

A) True 
 B)False

Question 16

It's safe to say that collection procedures are expensive and justifiable only when the expected results ______.

Accepted Answer

A) are lower than the cost. 
B) exceed the cost. 
C) are equal to the cost. 
D) are at least 40% lower than the cost. 
E) None of the above. 
A) are lower than the cost. 
B) exceed the cost. 
C) are equal to the cost. 
D) are at least 40% lower than the cost. 
E) None of the above.

Question 17

Which of the following is a method of pursuing payment from a customer whom the entrepreneur believes able to pay?

Accepted Answer

A) Refusing any further supplies, or supplying only for cash 
B) Threatening legal action 
C) Actually undertaking legal proceedings, using a specialized collection agency 
D) All of the above 
E) None of the above 
A) Refusing any further supplies, or supplying only for cash 
B) Threatening legal action 
C) Actually undertaking legal proceedings, using a specialized collection agency 
D) All of the above 
E) None of the above

Question 18

Methods of forecasting environmental change fall into two broad groups.One group is primarily concerned with forecasting the future performance of the economy as a whole; the other group is more concerned with forecasting ______ for individual industries and products.

Accepted Answer

A) sales 
B) cost 
C) inventory 
D) weather patterns 
E) None of above 
A) sales 
B) cost 
C) inventory 
D) weather patterns 
E) None of above

Question 19

What kind of information will the loan officer be interested in, when entrepreneurs are looking for a bank loan?

Accepted Answer

@#LAT-DLM&How much money the company nee

Question 20

Give an example of a Specific Provision that an entrepreneur might encounter in a loan agreement.

Accepted Answer

@#LAT-DLM&Key executives may be required to sign e

What does a trade-credit effectively amount to?

Accounts receivable represents liquid working capital that can be obtained prematurely without cost

The basis of all receivables and collections is actual net sales, which is equal to ______.

What are the advantages of trade credit over other sources of financing?

The magnitude of a company's accounts receivable obviously depends upon a number of factors, except _________.

Home equity lines of credit are the only way in which entrepreneurs provide funding for their businesses.

From an ongoing perspective, the company's new ratio might be more indicative of liquidity than either the current ratio or the quick ratio.

The bank discount method is common in ______.

When paying for working capital shortfalls, entrepreneurs look for short-term cash at the lowest possible rates.

Which of the following requirements apply with an SBA loan

Discuss the importance of the cash collection cycle in terms of your ventures growth model.

Discuss the importance of forecasting cash flow requirements as it pertains to working capital.

A routine condition which could cause an entrepreneur to regularly factor his/her accounts receivables could be ____

An entrepreneur only requires enough cash to cover needs under the most likely scenario he/she has forecasted. s

Companies with a negative cash conversion cycle will see their working capital requirements increase with growth.

It's safe to say that collection procedures are expensive and justifiable only when the expected results ______.

Which of the following is a method of pursuing payment from a customer whom the entrepreneur believes able to pay?

Methods of forecasting environmental change fall into two broad groups.One group is primarily concerned with forecasting the future performance of the economy as a whole; the other group is more concerned with forecasting ______ for individual industries and products.

What kind of information will the loan officer be interested in, when entrepreneurs are looking for a bank loan?

Give an example of a Specific Provision that an entrepreneur might encounter in a loan agreement.

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Building Your Pro Forma Financial Statements

Facing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship: an Overview

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Exam 11: Debt and Other Forms of Financing

What does a trade-credit effectively amount to?

Accounts receivable represents liquid working capital that can be obtained prematurely without cost

The basis of all receivables and collections is actual net sales, which is equal to ______.

What are the advantages of trade credit over other sources of financing?

The magnitude of a company's accounts receivable obviously depends upon a number of factors, except _________.

Home equity lines of credit are the only way in which entrepreneurs provide funding for their businesses.

From an ongoing perspective, the company's new ratio might be more indicative of liquidity than either the current ratio or the quick ratio.

The bank discount method is common in ______.

When paying for working capital shortfalls, entrepreneurs look for short-term cash at the lowest possible rates.

Which of the following requirements apply with an SBA loan

Discuss the importance of the cash collection cycle in terms of your ventures growth model.

Discuss the importance of forecasting cash flow requirements as it pertains to working capital.

A routine condition which could cause an entrepreneur to regularly factor his/her accounts receivables could be ____

An entrepreneur only requires enough cash to cover needs under the most likely scenario he/she has forecasted. s

Companies with a negative cash conversion cycle will see their working capital requirements increase with growth.

It's safe to say that collection procedures are expensive and justifiable only when the expected results ______.

Which of the following is a method of pursuing payment from a customer whom the entrepreneur believes able to pay?

Methods of forecasting environmental change fall into two broad groups.One group is primarily concerned with forecasting the future performance of the economy as a whole; the other group is more concerned with forecasting ______ for individual industries and products.

What kind of information will the loan officer be interested in, when entrepreneurs are looking for a bank loan?

Give an example of a Specific Provision that an entrepreneur might encounter in a loan agreement.

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Building Your Pro Forma Financial Statements

Facing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship: an Overview

Filters