Question 1

A SWOT analysis does not focus on which of the following components or areas?

Accepted Answer

A)  strengths 
B)  weaknesses 
C)  new ideas 
D)  opportunities 
E)  threats 
A)  strengths 
B)  weaknesses 
C)  new ideas 
D)  opportunities 
E)  threats C

Question 2

Determine the return on assets ROA) for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

Accepted Answer

A)  10% 
B)  14% 
C)  20% 
D)  28% 
E)  34% 
A)  10% 
B)  14% 
C)  20% 
D)  28% 
E)  34% D

Question 3

The compound rate of return that equates the present value of the cash inflows with the initial investment outlay is called the internal rate of return IRR).

Accepted Answer

A) True 
 B)False  True

Question 4

Return on assets can be stated as which of the following?

Accepted Answer

A)  net after-tax profit divided by total assets 
B)  net profit margin times asset turnover 
C)  net cash flow divided by total assets 
D)  both a and b 
E)  both a and c 
A)  net after-tax profit divided by total assets 
B)  net profit margin times asset turnover 
C)  net cash flow divided by total assets 
D)  both a and b 
E)  both a and c

Question 5

Venture opportunity screening involves assessment of an idea's commercial potential to produce revenue growth, financial performance, and value.

Accepted Answer

A) True 
 B)False

Question 6

An entrepreneur may start a number of different types of businesses, including salary-replacement firms, lifestyle firms, and entrepreneurial firms or ventures.

Accepted Answer

A) True 
 B)False

Question 7

A venture's value to its owners is determined by the:

Accepted Answer

A)  size and timing of its future free cash flows to equity) 
B)  level of its past revenues 
C)  prior losses and expenses 
D)  all of the above 
A)  size and timing of its future free cash flows to equity) 
B)  level of its past revenues 
C)  prior losses and expenses 
D)  all of the above

Question 8

A SWOT analysis should consider the extent of existing competition and the likelihood of substitute products or services as potential strengths or opportunities.

Accepted Answer

A) True 
 B)False

Question 9

A "score" in the range of 2.34-3.00 using the VOS IndicatorTM ???? ?would be considered a:

Accepted Answer

A)  a low score 
B)  an average score 
C)  a high score 
D)  a very, very high score 
A)  a low score 
B)  an average score 
C)  a high score 
D)  a very, very high score

Question 10

In a typical business plan, the section covering the management team does not need to disclose the expertise and experience of the management.

Accepted Answer

A) True 
 B)False

Question 11

Bootstrapping refers to the process of minimizing resources such as the need for financial capital and finding unique sources for financing a new venture.

Accepted Answer

A) True 
 B)False

Question 12

S. small businesses are predominately:

Accepted Answer

A)  salary-replacement or entrepreneurial firms 
B)  lifestyle or entrepreneurial firms 
C)  entrepreneurial ventures 
D)  salary-replacement or lifestyle firms 
A)  salary-replacement or entrepreneurial firms 
B)  lifestyle or entrepreneurial firms 
C)  entrepreneurial ventures 
D)  salary-replacement or lifestyle firms

Question 13

A well-designed entrepreneurial venture typically includes:

Accepted Answer

A)  generating ideas 
B)  analyzing the feasibility of ideas 
C)  producing business models/plans 
D)  only a and c above 
E)  a, b, and c above 
A)  generating ideas 
B)  analyzing the feasibility of ideas 
C)  producing business models/plans 
D)  only a and c above 
E)  a, b, and c above

Question 14

Revenues minus the cost of goods sold is called

Accepted Answer

A)  gross profit 
B)  gross profit margin 
C)  net profit 
D)  net profit margin 
A)  gross profit 
B)  gross profit margin 
C)  net profit 
D)  net profit margin

Question 15

Business changes resulting in higher net profit always increases ROA.

Accepted Answer

A) True 
 B)False

Question 16

A SWOT analysis focuses on strengths S), worries W), opportunities O), and treats T).

Accepted Answer

A) True 
 B)False

Question 17

Best practices of high-growth, high-performance firms applied in the financial practices area include "preparing detailed monthly financial plans for the next year and annual financial plans for the next five years.

Accepted Answer

A) True 
 B)False

Question 18

One way to describe asset intensity is the dollar investment in assets needed to generate a dollar in sales.

Accepted Answer

A) True 
 B)False

Question 19

When composing the financial plans and projections section of a business plan, all of the following should be included except:

Accepted Answer

A)  income statements and balance sheets 
B)  statement of cash flows 
C)  past and present dividend per share information 
D)  breakeven analysis 
E)  funding needs and sources 
A)  income statements and balance sheets 
B)  statement of cash flows 
C)  past and present dividend per share information 
D)  breakeven analysis 
E)  funding needs and sources

Question 20

Determine the dollar amount of total assets for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

Accepted Answer

A)  $100,000 
B)  $250,000 
C)  $375,000 
D)  $500,000 
E)  $650,000 
A)  $100,000 
B)  $250,000 
C)  $375,000 
D)  $500,000 
E)  $650,000

A SWOT analysis does not focus on which of the following components or areas?

Determine the return on assets ROA) for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

The compound rate of return that equates the present value of the cash inflows with the initial investment outlay is called the internal rate of return IRR).

Return on assets can be stated as which of the following?

Venture opportunity screening involves assessment of an idea's commercial potential to produce revenue growth, financial performance, and value.

An entrepreneur may start a number of different types of businesses, including salary-replacement firms, lifestyle firms, and entrepreneurial firms or ventures.

A venture's value to its owners is determined by the:

A SWOT analysis should consider the extent of existing competition and the likelihood of substitute products or services as potential strengths or opportunities.

A "score" in the range of 2.34-3.00 using the VOS Indicator^TM^??_{?? ?}would be considered a:

In a typical business plan, the section covering the management team does not need to disclose the expertise and experience of the management.

Bootstrapping refers to the process of minimizing resources such as the need for financial capital and finding unique sources for financing a new venture.

S. small businesses are predominately:

A well-designed entrepreneurial venture typically includes:

Revenues minus the cost of goods sold is called

Business changes resulting in higher net profit always increases ROA.

A SWOT analysis focuses on strengths S), worries W), opportunities O), and treats T).

Best practices of high-growth, high-performance firms applied in the financial practices area include "preparing detailed monthly financial plans for the next year and annual financial plans for the next five years.

One way to describe asset intensity is the dollar investment in assets needed to generate a dollar in sales.

When composing the financial plans and projections section of a business plan, all of the following should be included except:

Determine the dollar amount of total assets for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

Introduction to Finance for Entrepreneurs

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 2: Developing the Business Idea

A SWOT analysis does not focus on which of the following components or areas?

Determine the return on assets ROA) for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

The compound rate of return that equates the present value of the cash inflows with the initial investment outlay is called the internal rate of return IRR).

Return on assets can be stated as which of the following?

Venture opportunity screening involves assessment of an idea's commercial potential to produce revenue growth, financial performance, and value.

An entrepreneur may start a number of different types of businesses, including salary-replacement firms, lifestyle firms, and entrepreneurial firms or ventures.

A venture's value to its owners is determined by the:

A SWOT analysis should consider the extent of existing competition and the likelihood of substitute products or services as potential strengths or opportunities.

A "score" in the range of 2.34-3.00 using the VOS IndicatorTM ???? ?would be considered a:

In a typical business plan, the section covering the management team does not need to disclose the expertise and experience of the management.

Bootstrapping refers to the process of minimizing resources such as the need for financial capital and finding unique sources for financing a new venture.

S. small businesses are predominately:

A well-designed entrepreneurial venture typically includes:

Revenues minus the cost of goods sold is called

Business changes resulting in higher net profit always increases ROA.

A SWOT analysis focuses on strengths S), worries W), opportunities O), and treats T).

Best practices of high-growth, high-performance firms applied in the financial practices area include "preparing detailed monthly financial plans for the next year and annual financial plans for the next five years.

One way to describe asset intensity is the dollar investment in assets needed to generate a dollar in sales.

When composing the financial plans and projections section of a business plan, all of the following should be included except:

Determine the dollar amount of total assets for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

Introduction to Finance for Entrepreneurs

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

A "score" in the range of 2.34-3.00 using the VOS Indicator^TM^??_{?? ?}would be considered a: