Question 1

The evaluation of "entry barriers" occurs under which one of the following parts of the VOS indicator?

Accepted Answer

A)  industry/market considerations 
B)  pricing/profitability considerations 
C)  financial/harvest considerations 
D)  management team considerations 
A)  industry/market considerations 
B)  pricing/profitability considerations 
C)  financial/harvest considerations 
D)  management team considerations

Question 2

A written document that describes the proposed venture in terms of the product or service opportunity, current resources, and financial projections is called a:

Accepted Answer

A)  financial plan 
B)  business plan 
C)  entrepreneurial plan 
D)  survival plan 
A)  financial plan 
B)  business plan 
C)  entrepreneurial plan 
D)  survival plan

Question 3

A viable venture opportunity is characterized by all of the following except?

Accepted Answer

A)  creating or meeting a customer need 
B)  has perceived attraction to prospective investors 
C)  provides an initial competitive advantage 
D)  is timely in terms of time-to-market 
E)  offers the expectation of added value to investors 
A)  creating or meeting a customer need 
B)  has perceived attraction to prospective investors 
C)  provides an initial competitive advantage 
D)  is timely in terms of time-to-market 
E)  offers the expectation of added value to investors

Question 4

Entrepreneurial ventures emphasize survival and providing an acceptable living for their owners with growth being a secondary goal.

Accepted Answer

A) True 
 B)False

Question 5

The first component of a sound business model is the need to generaterevenues.

Accepted Answer

A) True 
 B)False

Question 6

Free cash flow to equity is the cash flow from producing and selling a product or providing a service.

Accepted Answer

A) True 
 B)False

Question 7

Determine the cost of goods sold for a venture with the following financial information: revenues = $50,000; net profit margin = 20%;gross profit margin = 70%

Accepted Answer

A)  $40,000 
B)  $35,000 
C)  $15,000 
D)  $10,000 
A)  $40,000 
B)  $35,000 
C)  $15,000 
D)  $10,000

Question 8

A sound business model should provide a plan to generate revenues, make profits, and produce free cash flows.

Accepted Answer

A) True 
 B)False

Question 9

Which one of the following components is not a standard component of a sound business model?

Accepted Answer

A)  produce low-cost products 
B)  generate revenues 
C)  make profits 
D)  produce free cash flows 
A)  produce low-cost products 
B)  generate revenues 
C)  make profits 
D)  produce free cash flows

Question 10

An average score on using the VOS Indicator?TM would fall in the range:

Accepted Answer

A)  0.00-0.99 
B)  1.00-1.66 
C)  1.67-2.33 
D)  2.34-3.00 
A)  0.00-0.99 
B)  1.00-1.66 
C)  1.67-2.33 
D)  2.34-3.00

Question 11

The process of moving from entrepreneurial opportunities to new businesses, products, or services begins with ideas, then moves to the preparation of a business plan, and finally ends with a feasibility study.

Accepted Answer

A) True 
 B)False

Question 12

Asset intensity and asset turnover are calculated as revenues divided by total assets.

Accepted Answer

A) True 
 B)False

Question 13

A high asset intensity implies a large investment in fixed assets and/or net working capital is needed to support revenue growth.

Accepted Answer

A) True 
 B)False

Question 14

Determine the asset intensity of a venture with the following financial information: net profit = $22,000; revenues = $132,000; return on assets 30%.

Accepted Answer

A)  .05 
B)  .56 
C)  1.8 
D)  20 
A)  .05 
B)  .56 
C)  1.8 
D)  20

Question 15

A firm's option to abandon a venture is an example of a:

Accepted Answer

A)  bootstrapping option 
B)  financial option 
C)  survival option 
D)  real option 
A)  bootstrapping option 
B)  financial option 
C)  survival option 
D)  real option

Question 16

Once conceptualized, a new idea should be examined for its business feasibility.

Accepted Answer

A) True 
 B)False

Question 17

A venture opportunity-screening guide, called the VOS Indicator, is used to determine potential attractiveness of venture opportunities as business opportunities.

Accepted Answer

A) True 
 B)False

Question 18

A "venture opportunity screening" is the same thing as preparing a business plan.

Accepted Answer

A) True 
 B)False

Question 19

Some venture investors like to draw analogies between baseball terms and venture performance. The baseball term used to reflect a total loss of an investment is:

Accepted Answer

A)  home run 
B)  single 
C)  strikeout 
D)  double 
A)  home run 
B)  single 
C)  strikeout 
D)  double

Question 20

A venture with a low score on the VOS Indicator should always be abandoned.

Accepted Answer

A) True 
 B)False

The evaluation of "entry barriers" occurs under which one of the following parts of the VOS indicator?

A written document that describes the proposed venture in terms of the product or service opportunity, current resources, and financial projections is called a:

A viable venture opportunity is characterized by all of the following except?

Entrepreneurial ventures emphasize survival and providing an acceptable living for their owners with growth being a secondary goal.

The first component of a sound business model is the need to generaterevenues.

Free cash flow to equity is the cash flow from producing and selling a product or providing a service.

Determine the cost of goods sold for a venture with the following financial information: revenues = $50,000; net profit margin = 20%;gross profit margin = 70%

A sound business model should provide a plan to generate revenues, make profits, and produce free cash flows.

Which one of the following components is not a standard component of a sound business model?

An average score on using the VOS Indicator_?^TMwould fall in the range:

The process of moving from entrepreneurial opportunities to new businesses, products, or services begins with ideas, then moves to the preparation of a business plan, and finally ends with a feasibility study.

Asset intensity and asset turnover are calculated as revenues divided by total assets.

A high asset intensity implies a large investment in fixed assets and/or net working capital is needed to support revenue growth.

Determine the asset intensity of a venture with the following financial information: net profit = $22,000; revenues = $132,000; return on assets 30%.

A firm's option to abandon a venture is an example of a:

Once conceptualized, a new idea should be examined for its business feasibility.

A venture opportunity-screening guide, called the VOS Indicator, is used to determine potential attractiveness of venture opportunities as business opportunities.

A "venture opportunity screening" is the same thing as preparing a business plan.

Some venture investors like to draw analogies between baseball terms and venture performance. The baseball term used to reflect a total loss of an investment is:

A venture with a low score on the VOS Indicator should always be abandoned.

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

The evaluation of "entry barriers" occurs under which one of the following parts of the VOS indicator?

A written document that describes the proposed venture in terms of the product or service opportunity, current resources, and financial projections is called a:

A viable venture opportunity is characterized by all of the following except?

Entrepreneurial ventures emphasize survival and providing an acceptable living for their owners with growth being a secondary goal.

The first component of a sound business model is the need to generaterevenues.

Free cash flow to equity is the cash flow from producing and selling a product or providing a service.

Determine the cost of goods sold for a venture with the following financial information: revenues = $50,000; net profit margin = 20%;gross profit margin = 70%

A sound business model should provide a plan to generate revenues, make profits, and produce free cash flows.

Which one of the following components is not a standard component of a sound business model?

An average score on using the VOS Indicator?TM would fall in the range:

The process of moving from entrepreneurial opportunities to new businesses, products, or services begins with ideas, then moves to the preparation of a business plan, and finally ends with a feasibility study.

Asset intensity and asset turnover are calculated as revenues divided by total assets.

A high asset intensity implies a large investment in fixed assets and/or net working capital is needed to support revenue growth.

Determine the asset intensity of a venture with the following financial information: net profit = $22,000; revenues = $132,000; return on assets 30%.

A firm's option to abandon a venture is an example of a:

Once conceptualized, a new idea should be examined for its business feasibility.

A venture opportunity-screening guide, called the VOS Indicator, is used to determine potential attractiveness of venture opportunities as business opportunities.

A "venture opportunity screening" is the same thing as preparing a business plan.

Some venture investors like to draw analogies between baseball terms and venture performance. The baseball term used to reflect a total loss of an investment is:

A venture with a low score on the VOS Indicator should always be abandoned.

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

An average score on using the VOS Indicator_?^TMwould fall in the range: