Question 1

Mark Twain said: "Like I tell anybody, if you fail to plan, you're planning to fail."

Accepted Answer

A) True 
 B)False

Question 2

Business opportunities, because they exist in real time, have a relatively narrow window of opportunity to become a successful business venture. However being the first to market does not guarantee success.

Accepted Answer

A) True 
 B)False

Question 3

At the end of a qualitative-based venture opportunity screening exercise, the interviewer prepares a subjective assessment and indicates one of the following except for:

Accepted Answer

A)  natural commercial potential 
B)  high commercial potential 
C)  average commercial potential 
D)  low commercial potential 
A)  natural commercial potential 
B)  high commercial potential 
C)  average commercial potential 
D)  low commercial potential

Question 4

Determine the dollar amount of net profit for a venture with the following financial information: revenues = $500,000; return on assets = 20%; and asset turnover = 2.00 times.

Accepted Answer

A)  $10,000 
B)  $25,000 
C)  $50,000 
D)  $60,000 
E)  $75,000 
A)  $10,000 
B)  $25,000 
C)  $50,000 
D)  $60,000 
E)  $75,000

Question 5

A SWOT analysis is an examination of the strengths, weaknesses, opportunities, and threats to determine the business opportunity viability of an idea.

Accepted Answer

A) True 
 B)False

Question 6

Direct costs of producing a product or providing a service 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 7

In the Kauffman Center study of best practices of high-growth, high-performance firms, which of the following practices was not included?

Accepted Answer

A)  marketing practices 
B)  financial practices 
C)  management practices 
D)  production/operations practices 
A)  marketing practices 
B)  financial practices 
C)  management practices 
D)  production/operations practices

Question 8

Determine the dollar amount of revenues for a venture with the following financial information: net profit = $60,000; assets turnover = 1.5 times; and return on assets 30%.

Accepted Answer

A)  $300,000 
B)  $500,000 
C)  $800,000 
D)  $1,000,000 
E)  $1,200,000 
A)  $300,000 
B)  $500,000 
C)  $800,000 
D)  $1,000,000 
E)  $1,200,000

Question 9

A well-designed entrepreneurial venture bins with an idea that survives an analysis of its feasibility and results in a business model/plan.

Accepted Answer

A) True 
 B)False

Question 10

Asset intensity is the net after-tax profit divided by total assets.

Accepted Answer

A) True 
 B)False

Question 11

A venture's value is determined by

Accepted Answer

A)  the size and timing of its future free cash flows 
B)  time value of money 
C)  its net income 
D)  a and b 
E)  a and c 
A)  the size and timing of its future free cash flows 
B)  time value of money 
C)  its net income 
D)  a and b 
E)  a and c

Question 12

Firms that allow owners to pursue specific lifestyles while being paid for doing what they like to do are referred to as:

Accepted Answer

A)  salary-replacement firms 
B)  lifestyle firms 
C)  entrepreneurial ventures 
D)  rapid value creation firms 
A)  salary-replacement firms 
B)  lifestyle firms 
C)  entrepreneurial ventures 
D)  rapid value creation firms

Question 13

The definition of an entrepreneurial firm is:

Accepted Answer

A)  survival, high growth 
B)  high growth, high performance 
C)  survival, average performance 
D)  high, growth, average performance 
A)  survival, high growth 
B)  high growth, high performance 
C)  survival, average performance 
D)  high, growth, average performance

Question 14

The process involving minimizing the need for financial capital and finding unique sources for financing a new venture is referred to as:

Accepted Answer

A)  mezzanine financing 
B)  financial bootstrapping 
C)  seed financing 
D)  startup financing 
A)  mezzanine financing 
B)  financial bootstrapping 
C)  seed financing 
D)  startup financing

Question 15

A typical business plan includes all of the following except:

Accepted Answer

A)  management team 
B)  financial plans and projections 
C)  risk and opportunities 
D)  timeline and milestones 
E)  initial public offering information 
A)  management team 
B)  financial plans and projections 
C)  risk and opportunities 
D)  timeline and milestones 
E)  initial public offering information

Question 16

For ventures that first get to market or create intellectual property rights, it's common to price new products or services at high markups or profit margins.

Accepted Answer

A) True 
 B)False

Question 17

The non-financial option available to managers as the venture progresses through its lifecycle is known as real options.

Accepted Answer

A) True 
 B)False

Question 18

Developing new and delivering high-quality products or services that command higher prices and margins best describes strong

Accepted Answer

A)  marketing practices 
B)  financial practices 
C)  operating practices 
D)  management practices 
A)  marketing practices 
B)  financial practices 
C)  operating practices 
D)  management practices

Question 19

The VOS Indicator provides both qualitative and quantitative information about a venture's commercial potential.

Accepted Answer

A) True 
 B)False

Question 20

A successful, sound business model does not have to ultimately produce free cash flows.

Accepted Answer

A) True 
 B)False

Mark Twain said: "Like I tell anybody, if you fail to plan, you're planning to fail."

Business opportunities, because they exist in real time, have a relatively narrow window of opportunity to become a successful business venture. However being the first to market does not guarantee success.

At the end of a qualitative-based venture opportunity screening exercise, the interviewer prepares a subjective assessment and indicates one of the following except for:

Determine the dollar amount of net profit for a venture with the following financial information: revenues = $500,000; return on assets = 20%; and asset turnover = 2.00 times.

A SWOT analysis is an examination of the strengths, weaknesses, opportunities, and threats to determine the business opportunity viability of an idea.

Direct costs of producing a product or providing a service is called

In the Kauffman Center study of best practices of high-growth, high-performance firms, which of the following practices was not included?

Determine the dollar amount of revenues for a venture with the following financial information: net profit = $60,000; assets turnover = 1.5 times; and return on assets 30%.

A well-designed entrepreneurial venture bins with an idea that survives an analysis of its feasibility and results in a business model/plan.

Asset intensity is the net after-tax profit divided by total assets.

A venture's value is determined by

Firms that allow owners to pursue specific lifestyles while being paid for doing what they like to do are referred to as:

The definition of an entrepreneurial firm is:

The process involving minimizing the need for financial capital and finding unique sources for financing a new venture is referred to as:

A typical business plan includes all of the following except:

For ventures that first get to market or create intellectual property rights, it's common to price new products or services at high markups or profit margins.

The non-financial option available to managers as the venture progresses through its lifecycle is known as real options.

Developing new and delivering high-quality products or services that command higher prices and margins best describes strong

The VOS Indicator provides both qualitative and quantitative information about a venture's commercial potential.

A successful, sound business model does not have to ultimately produce free cash flows.

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

Mark Twain said: "Like I tell anybody, if you fail to plan, you're planning to fail."

Business opportunities, because they exist in real time, have a relatively narrow window of opportunity to become a successful business venture. However being the first to market does not guarantee success.

At the end of a qualitative-based venture opportunity screening exercise, the interviewer prepares a subjective assessment and indicates one of the following except for:

Determine the dollar amount of net profit for a venture with the following financial information: revenues = $500,000; return on assets = 20%; and asset turnover = 2.00 times.

A SWOT analysis is an examination of the strengths, weaknesses, opportunities, and threats to determine the business opportunity viability of an idea.

Direct costs of producing a product or providing a service is called

In the Kauffman Center study of best practices of high-growth, high-performance firms, which of the following practices was not included?

Determine the dollar amount of revenues for a venture with the following financial information: net profit = $60,000; assets turnover = 1.5 times; and return on assets 30%.

A well-designed entrepreneurial venture bins with an idea that survives an analysis of its feasibility and results in a business model/plan.

Asset intensity is the net after-tax profit divided by total assets.

A venture's value is determined by

Firms that allow owners to pursue specific lifestyles while being paid for doing what they like to do are referred to as:

The definition of an entrepreneurial firm is:

The process involving minimizing the need for financial capital and finding unique sources for financing a new venture is referred to as:

A typical business plan includes all of the following except:

For ventures that first get to market or create intellectual property rights, it's common to price new products or services at high markups or profit margins.

The non-financial option available to managers as the venture progresses through its lifecycle is known as real options.

Developing new and delivering high-quality products or services that command higher prices and margins best describes strong

The VOS Indicator provides both qualitative and quantitative information about a venture's commercial potential.

A successful, sound business model does not have to ultimately produce free cash flows.

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