Question 1

Mark Twain once said, "I was always able to see an opportunity before it became one."

Accepted Answer

A) True 
 B)False

Question 2

Which one of the following would not be considered a type of venture financing?

Accepted Answer

A)  seed financing 
B)  startup financing 
C)  mezzanine financing 
D)  liquidity-stage financing 
E)  seasoned financing 
A)  seed financing 
B)  startup financing 
C)  mezzanine financing 
D)  liquidity-stage financing 
E)  seasoned financing

Question 3

An entrepreneur is an individual who thinks, reasons, and acts to convert ideas into commercial opportunities and to create value.

Accepted Answer

A) True 
 B)False

Question 4

Small and growing enterprises are critical to the U.S. economy; small firms provide 20 to 30 percent of net new jobs.

Accepted Answer

A) True 
 B)False

Question 5

The so-called "baby boom" generation applies to people born in the United States during the 1946-1964 time period.

Accepted Answer

A) True 
 B)False

Question 6

A venture's financial objective is to survive.

Accepted Answer

A) True 
 B)False

Question 7

You have the opportunity of making a $5,000 investment. The outcomes one year from now will be either $5,000 or $6,000 with an equal chance of either outcome occurring. What is the expected rate of return?

Accepted Answer

A)  10% 
B)  15% 
C)  20% 
D)  25% 
E)  30% 
A)  10% 
B)  15% 
C)  20% 
D)  25% 
E)  30%

Question 8

The rapid growth stage directly follows the startup stage.

Accepted Answer

A) True 
 B)False

Question 9

Venture character and reputation can be assets or liabilities.

Accepted Answer

A) True 
 B)False

Question 10

Assume that you can sell a new product at $5.00 per unit. Your variable costs are $3.00 per unit and you fixed costs are $20,000. What will be your profit before taxes if you sell 12,000 units next year?

Accepted Answer

A)  $0 
B)  $1,000 
C)  $2,000 
D)  $4,000 
E)  $8,000 
A)  $0 
B)  $1,000 
C)  $2,000 
D)  $4,000 
E)  $8,000

Question 11

The first three stages of a successful venture's life cycle occur in the following order:

Accepted Answer

A)  development, rapid growth, survival 
B)  startup, development, rapid growth 
C)  startup, survival, rapid growth 
D)  survival, rapid growth, early-maturity 
E)  development, startup, survival 
A)  development, rapid growth, survival 
B)  startup, development, rapid growth 
C)  startup, survival, rapid growth 
D)  survival, rapid growth, early-maturity 
E)  development, startup, survival

Question 12

Nine principles of entrepreneurial finance are identified and explored in this entrepreneurial finance textbook,

Accepted Answer

A) True 
 B)False

Question 13

The "time value of money" is an important component of the rent one pays for using someone else's financial capital.

Accepted Answer

A) True 
 B)False

Question 14

Business angels are wealthy individuals acting as informal or private investors, who provide venture financing for small businesses.

Accepted Answer

A) True 
 B)False

Question 15

The financial objective of increasing value is inconsistent with developing positive character and reputation.

Accepted Answer

A) True 
 B)False

Question 16

Three major megatrends discussed in Chapter 1 include: societal trends or changes, demographic trends or changes, and technological trends or changes.

Accepted Answer

A) True 
 B)False

Question 17

Studies by Phillips and Kirchhoff, and by Headd, found that about 38%-40% of new firms survived six years of operation.

Accepted Answer

A) True 
 B)False

Question 18

Free cash is all the cash available to cover operating expenses.

Accepted Answer

A) True 
 B)False

Mark Twain once said, "I was always able to see an opportunity before it became one."

Which one of the following would not be considered a type of venture financing?

An entrepreneur is an individual who thinks, reasons, and acts to convert ideas into commercial opportunities and to create value.

Small and growing enterprises are critical to the U.S. economy; small firms provide 20 to 30 percent of net new jobs.

The so-called "baby boom" generation applies to people born in the United States during the 1946-1964 time period.

A venture's financial objective is to survive.

You have the opportunity of making a $5,000 investment. The outcomes one year from now will be either $5,000 or $6,000 with an equal chance of either outcome occurring. What is the expected rate of return?

The rapid growth stage directly follows the startup stage.

Venture character and reputation can be assets or liabilities.

Assume that you can sell a new product at $5.00 per unit. Your variable costs are $3.00 per unit and you fixed costs are $20,000. What will be your profit before taxes if you sell 12,000 units next year?

The first three stages of a successful venture's life cycle occur in the following order:

Nine principles of entrepreneurial finance are identified and explored in this entrepreneurial finance textbook,

The "time value of money" is an important component of the rent one pays for using someone else's financial capital.

Business angels are wealthy individuals acting as informal or private investors, who provide venture financing for small businesses.

The financial objective of increasing value is inconsistent with developing positive character and reputation.

Three major megatrends discussed in Chapter 1 include: societal trends or changes, demographic trends or changes, and technological trends or changes.

Studies by Phillips and Kirchhoff, and by Headd, found that about 38%-40% of new firms survived six years of operation.

Free cash is all the cash available to cover operating expenses.

Developing the Business Idea

Organizing and Financing a New Venture

Preparing and Using Financial Statements

Evaluating Operating and Financial Performance

Managing Cash Flow

Types and Costs of Financial Capital

Securities Law Considerations When Obtaining Venture Financing

Projecting Financial Statements

Valuing Early-Stage Ventures

Venture Capital Valuation Methods

Professional Venture Capital

Other Financing Alternatives

Security Structures and Determining Enterprise Values

Harvesting the Business Venture Investment

Financially Troubled Ventures: Turnaround Opportunities

Filters

Exam 1: Introduction to Finance for Entrepreneurs

Mark Twain once said, "I was always able to see an opportunity before it became one."

Which one of the following would not be considered a type of venture financing?

An entrepreneur is an individual who thinks, reasons, and acts to convert ideas into commercial opportunities and to create value.

Small and growing enterprises are critical to the U.S. economy; small firms provide 20 to 30 percent of net new jobs.

The so-called "baby boom" generation applies to people born in the United States during the 1946-1964 time period.

A venture's financial objective is to survive.

You have the opportunity of making a $5,000 investment. The outcomes one year from now will be either $5,000 or $6,000 with an equal chance of either outcome occurring. What is the expected rate of return?

The rapid growth stage directly follows the startup stage.

Venture character and reputation can be assets or liabilities.

Assume that you can sell a new product at $5.00 per unit. Your variable costs are $3.00 per unit and you fixed costs are $20,000. What will be your profit before taxes if you sell 12,000 units next year?

The first three stages of a successful venture's life cycle occur in the following order:

Nine principles of entrepreneurial finance are identified and explored in this entrepreneurial finance textbook,

The "time value of money" is an important component of the rent one pays for using someone else's financial capital.

Business angels are wealthy individuals acting as informal or private investors, who provide venture financing for small businesses.

The financial objective of increasing value is inconsistent with developing positive character and reputation.

Three major megatrends discussed in Chapter 1 include: societal trends or changes, demographic trends or changes, and technological trends or changes.

Studies by Phillips and Kirchhoff, and by Headd, found that about 38%-40% of new firms survived six years of operation.

Free cash is all the cash available to cover operating expenses.

Developing the Business Idea

Organizing and Financing a New Venture

Preparing and Using Financial Statements

Evaluating Operating and Financial Performance

Managing Cash Flow

Types and Costs of Financial Capital

Securities Law Considerations When Obtaining Venture Financing

Projecting Financial Statements

Valuing Early-Stage Ventures

Venture Capital Valuation Methods

Professional Venture Capital

Other Financing Alternatives

Security Structures and Determining Enterprise Values

Harvesting the Business Venture Investment

Financially Troubled Ventures: Turnaround Opportunities

Filters