Question 1

Dollar profit left after all expenses, including financing costs and taxes have been deducted from the firm's revenues is called

Accepted Answer

A)  gross profit 
B)  gross profit margin 
C)  net profit 
D)  net profit margin 
E)  cost of goods sold 
A)  gross profit 
B)  gross profit margin 
C)  net profit 
D)  net profit margin 
E)  cost of goods sold

Question 2

"Salary-replacement" firms provide their owners with income levels comparable to what they could have earned working for much larger firms.

Accepted Answer

A) True 
 B)False

Question 3

A SWOT analysis should consider as potential strengths or weaknesses whether there are unfilled customer needs and the extent to which intellectual property rights exist.

Accepted Answer

A) True 
 B)False

Question 4

Which one of the following is not a part of the VOS indicator?

Accepted Answer

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

Question 5

Best practices of high-growth, high-performance firms applied in the marketing practices area include "developing new products or services that are considered to be the best."

Accepted Answer

A) True 
 B)False

Question 6

Determine gross profit of a venture with the followingfinancial information: cost of goods sold = $30,000; net profit = $17,000; asset turnover = 1.6; return on assets 32%

Accepted Answer

A)  $85,000 
B)  $72,000 
C)  $55,000 
D)  $38,000 
A)  $85,000 
B)  $72,000 
C)  $55,000 
D)  $38,000

Question 7

SWOT analysis should at the very least consider which of the following areas:

Accepted Answer

A)  experience/expertise 
B)  reputation value 
C)  first mover 
D)  a and b 
E)  a, b, and c 
A)  experience/expertise 
B)  reputation value 
C)  first mover 
D)  a and b 
E)  a, b, and c

Question 8

A sound business model is a plan to generate investor interest, make profits, and grow asset investments.

Accepted Answer

A) True 
 B)False

Question 9

Effective entrepreneurial management teams should include all of the following except?

Accepted Answer

A)  provide expertise in the areas of marketing, finance, and operations 
B)  have successful experience in the venture's industry and markets 
C)  work collaboratively with each other 
D)  share the entrepreneurial spirit 
E)  in-house accounting, auditing, and tax professionals 
A)  provide expertise in the areas of marketing, finance, and operations 
B)  have successful experience in the venture's industry and markets 
C)  work collaboratively with each other 
D)  share the entrepreneurial spirit 
E)  in-house accounting, auditing, and tax professionals

Question 10

"Entrepreneurial ventures" are firms that allow owners to pursue specific lifestyles while being paid for doing what they like to do.

Accepted Answer

A) True 
 B)False

Question 11

A VOS indicator stands for:

Accepted Answer

A)  venture opportunity screening indicator 
B)  viable opportunity statement indicator 
C)  venture only success indicator 
D)  viable assessment screening indicator 
A)  venture opportunity screening indicator 
B)  viable opportunity statement indicator 
C)  venture only success indicator 
D)  viable assessment screening indicator

Question 12

Best practices of high-growth, high-performance firms applied in the marketing 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 13

Ideas that are said to be "ahead of their time" are too early to become viable business opportunities for the inventor or innovator.

Accepted Answer

A) True 
 B)False

Question 14

In the venture life cycle, moving from the development stage to the startup stage frequently begins with the preparation of a business plan. The business plan is a written document that describes the proposed venture in all of the following terms except:

Accepted Answer

A)  the proposed product or service opportunity 
B)  the accounting data for the last five years 
C)  current resources available to the venture 
D)  financial projections 
A)  the proposed product or service opportunity 
B)  the accounting data for the last five years 
C)  current resources available to the venture 
D)  financial projections

Question 15

The return on assets ROA) model measures:

Accepted Answer

A)  revenues divided by net profit times the asset turnover 
B)  net profit margin times the equity multiplier 
C)  net profit margin times asset turnover 
D)  net profit divided by total assets multiplied by the asset turnover 
A)  revenues divided by net profit times the asset turnover 
B)  net profit margin times the equity multiplier 
C)  net profit margin times asset turnover 
D)  net profit divided by total assets multiplied by the asset turnover

Question 16

The first two requirements of a sound business model are:

Accepted Answer

A)  generate revenues, make profits 
B)  make profits, produce free cash flows 
C)  produce free cash flows for creditors and owners of the venture generate revenues and produce free cash flows 
A)  generate revenues, make profits 
B)  make profits, produce free cash flows 
C)  produce free cash flows for creditors and owners of the venture generate revenues and produce free cash flows

Question 17

Free cash flows, which can be paid back to investors occurs when cash generated from operations exceeds all of the following except?

Accepted Answer

A)  borrowing costs 
B)  non-cash depreciation 
C)  taxes 
D)  investment in assets 
A)  borrowing costs 
B)  non-cash depreciation 
C)  taxes 
D)  investment in assets

Question 18

The VOS Indicator is useful in assessing the commercial potential of a venture, but should not be used as the sole tool to determine a venture's fate.

Accepted Answer

A) True 
 B)False

Question 19

Lifestyle firms are growth-driven in terms of revenues, profits, and cash flows and also performance-oriented as reflected in rapid value creation over time.

Accepted Answer

A) True 
 B)False

Question 20

Best practices of high-growth, high-performance firms applied in the management practices area include "assembling a management team that is balanced in both functional area coverage and industry/market knowledge."

Accepted Answer

A) True 
 B)False

Dollar profit left after all expenses, including financing costs and taxes have been deducted from the firm's revenues is called

"Salary-replacement" firms provide their owners with income levels comparable to what they could have earned working for much larger firms.

A SWOT analysis should consider as potential strengths or weaknesses whether there are unfilled customer needs and the extent to which intellectual property rights exist.

Which one of the following is not a part of the VOS indicator?

Best practices of high-growth, high-performance firms applied in the marketing practices area include "developing new products or services that are considered to be the best."

Determine gross profit of a venture with the followingfinancial information: cost of goods sold = $30,000; net profit = $17,000; asset turnover = 1.6; return on assets 32%

SWOT analysis should at the very least consider which of the following areas:

A sound business model is a plan to generate investor interest, make profits, and grow asset investments.

Effective entrepreneurial management teams should include all of the following except?

"Entrepreneurial ventures" are firms that allow owners to pursue specific lifestyles while being paid for doing what they like to do.

A VOS indicator stands for:

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

Ideas that are said to be "ahead of their time" are too early to become viable business opportunities for the inventor or innovator.

In the venture life cycle, moving from the development stage to the startup stage frequently begins with the preparation of a business plan. The business plan is a written document that describes the proposed venture in all of the following terms except:

The return on assets ROA) model measures:

The first two requirements of a sound business model are:

Free cash flows, which can be paid back to investors occurs when cash generated from operations exceeds all of the following except?

The VOS Indicator is useful in assessing the commercial potential of a venture, but should not be used as the sole tool to determine a venture's fate.

Lifestyle firms are growth-driven in terms of revenues, profits, and cash flows and also performance-oriented as reflected in rapid value creation over time.

Best practices of high-growth, high-performance firms applied in the management practices area include "assembling a management team that is balanced in both functional area coverage and industry/market knowledge."

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

Dollar profit left after all expenses, including financing costs and taxes have been deducted from the firm's revenues is called

"Salary-replacement" firms provide their owners with income levels comparable to what they could have earned working for much larger firms.

A SWOT analysis should consider as potential strengths or weaknesses whether there are unfilled customer needs and the extent to which intellectual property rights exist.

Which one of the following is not a part of the VOS indicator?

Best practices of high-growth, high-performance firms applied in the marketing practices area include "developing new products or services that are considered to be the best."

Determine gross profit of a venture with the followingfinancial information: cost of goods sold = $30,000; net profit = $17,000; asset turnover = 1.6; return on assets 32%

SWOT analysis should at the very least consider which of the following areas:

A sound business model is a plan to generate investor interest, make profits, and grow asset investments.

Effective entrepreneurial management teams should include all of the following except?

"Entrepreneurial ventures" are firms that allow owners to pursue specific lifestyles while being paid for doing what they like to do.

A VOS indicator stands for:

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

Ideas that are said to be "ahead of their time" are too early to become viable business opportunities for the inventor or innovator.

In the venture life cycle, moving from the development stage to the startup stage frequently begins with the preparation of a business plan. The business plan is a written document that describes the proposed venture in all of the following terms except:

The return on assets ROA) model measures:

The first two requirements of a sound business model are:

Free cash flows, which can be paid back to investors occurs when cash generated from operations exceeds all of the following except?

The VOS Indicator is useful in assessing the commercial potential of a venture, but should not be used as the sole tool to determine a venture's fate.

Lifestyle firms are growth-driven in terms of revenues, profits, and cash flows and also performance-oriented as reflected in rapid value creation over time.

Best practices of high-growth, high-performance firms applied in the management practices area include "assembling a management team that is balanced in both functional area coverage and industry/market knowledge."

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