Question 1

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 2

The two major determinants of the credit decision are the character of the creditor firm and the capacity of the debtor company to repay the loan.

Accepted Answer

A) True 
 B)False

Question 3

An entrepreneur's inventory is an asset that legally cannot serve as collateral for a loan.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

Net working capital is difficult to calculate; the method of taking the difference between current assets and current liabilities leaves the entrepreneur with ambiguous figures.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not suitable for using field warehousing?

Accepted Answer

A)  Especially bulky inventory. 
B)  Especially valuable inventory. 
C)  Structural steel 
D)  An inventory of chemicals 
E)  None of the above. 
A)  Especially bulky inventory. 
B)  Especially valuable inventory. 
C)  Structural steel 
D)  An inventory of chemicals 
E)  None of the above.

Question 9

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 10

Pledging means using accounts payable as collateral for a loan from a finance company or bank.

Accepted Answer

A) True 
 B)False

Question 11

Working capital requirements can fall short periodically as long as the company remains profitable.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following assets represent the most important current asset of many manufacturing companies?

Accepted Answer

A)  Cash 
B)  Accounts receivable 
C)  Inventories 
D)  Property, plant, and equipment 
E)  Short-term investments 
A)  Cash 
B)  Accounts receivable 
C)  Inventories 
D)  Property, plant, and equipment 
E)  Short-term investments

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 two major determinants of the credit decision are the character of the creditor firm and the capacity of the debtor company to repay the loan.

An entrepreneur's inventory is an asset that legally cannot serve as collateral for a loan.

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.

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

The bank discount method is common in ______.

Net working capital is difficult to calculate; the method of taking the difference between current assets and current liabilities leaves the entrepreneur with ambiguous figures.

Which of the following is not suitable for using field warehousing?

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

Pledging means using accounts payable as collateral for a loan from a finance company or bank.

Working capital requirements can fall short periodically as long as the company remains profitable.

Which of the following assets represent the most important current asset of many manufacturing companies?

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Prototyping Your Ideas

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Building Your Pro Forma Financial Statements

Financing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship

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Exam 12: Debt and Other Forms of Financing

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 two major determinants of the credit decision are the character of the creditor firm and the capacity of the debtor company to repay the loan.

An entrepreneur's inventory is an asset that legally cannot serve as collateral for a loan.

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.

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

The bank discount method is common in ______.

Net working capital is difficult to calculate; the method of taking the difference between current assets and current liabilities leaves the entrepreneur with ambiguous figures.

Which of the following is not suitable for using field warehousing?

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

Pledging means using accounts payable as collateral for a loan from a finance company or bank.

Working capital requirements can fall short periodically as long as the company remains profitable.

Which of the following assets represent the most important current asset of many manufacturing companies?

The Power of Entrepreneurship

The Entrepreneurial Process

Opportunity Recognition, Shaping, and Reshaping

Prototyping Your Ideas

Understanding Your Business Model and Developing Your Strategy

Entrepreneurial Marketing

Building the Founding Team

The Business Planning Process

Building Your Pro Forma Financial Statements

Financing Entrepreneurial Ventures Worldwide

Raising Money for Starting and Growing Businesses

Legal and Tax Issues, Including Intellectual Property

Entrepreneurial Growth

Social Entrepreneurship

Filters