Question 1

Which of the following is not a major source of startup financing for a venture's startup stage?

Accepted Answer

A) the entrepreneur's assets 
B) business operations 
C) family and friends 
D) venture capitalists 
A) the entrepreneur's assets 
B) business operations 
C) family and friends 
D) venture capitalists B

Question 2

In the early 1970s, Harry Dent recognized that the U.S. economy centered on the creation and distribution of information.

Accepted Answer

A) True 
 B)False  False

Question 3

One principle of entrepreneurial finance is "risk and expected reward go hand in hand."

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following individuals once said, "I was seldom able to see an opportunity, until it ceased to be one."

Accepted Answer

A) Mark Twain 
B) Bill Gates 
C) Steve Jobs 
D) Jeff Bezos 
A) Mark Twain 
B) Bill Gates 
C) Steve Jobs 
D) Jeff Bezos

Question 5

A market-oriented economic system provides an environment that fosters the formation, development, and transformation of ideas into useful products and services.

Accepted Answer

A) True 
 B)False

Question 6

The owner-debtholder conflict is the divergence of the owners' and lenders' self-interests as the firm gets close to going "public."

Accepted Answer

A) True 
 B)False

Question 7

Financial distress occurs when cash flow is insufficient to meet current debt obligations.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following are sources of entrepreneurial opportunities?

Accepted Answer

A) societal, demographic, and technological trends 
B) crises and "bubbles" 
C) emerging economies and global changes 
D) societal, demographic, and technological trends; crises and "bubbles"; and emerging 
E) economies and global changes 
A) societal, demographic, and technological trends 
B) crises and "bubbles" 
C) emerging economies and global changes 
D) societal, demographic, and technological trends; crises and "bubbles"; and emerging 
E) economies and global changes

Question 9

The boomers generation applies to people born in the United States during the 1946-1964 time period.

Accepted Answer

A) True 
 B)False

Question 10

The entrepreneurial process involves: developing opportunities, gathering resources, and managing and building operations, all with the goal of creating value.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is correct?

Accepted Answer

A) the development stage occurs between the startup and survival stages of a venture's life cycle 
B) the early-maturity stage is the final stage of a new venture's life cycle 
C) firms typically begin to cover all expenses with internally generated funds during the survival stage 
D) during the startup stage, revenues grow much more rapidly than cash expenditures 
A) the development stage occurs between the startup and survival stages of a venture's life cycle 
B) the early-maturity stage is the final stage of a new venture's life cycle 
C) firms typically begin to cover all expenses with internally generated funds during the survival stage 
D) during the startup stage, revenues grow much more rapidly than cash expenditures

Question 12

The entrepreneurial process involves:

Accepted Answer

A) developing opportunities 
B) gathering resources 
C) managing and building operations 
D) developing opportunities, gathering resources, and managing and building operations 
A) developing opportunities 
B) gathering resources 
C) managing and building operations 
D) developing opportunities, gathering resources, and managing and building operations

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

In the broadest context, societal change reflects the evolution of humanity over time.

Accepted Answer

A) True 
 B)False

Question 15

Owner-manager (agency)conflicts are differences between a manager's self-interest and that of the owners who hired the manager.

Accepted Answer

A) True 
 B)False

Question 16

A venture's financial objective is to survive.

Accepted Answer

A) True 
 B)False

Question 17

Successful entrepreneurs do not exhibit which of the following traits?

Accepted Answer

A) recognize and seize commercial opportunities 
B) tend to be doggedly optimistic 
C) express conditional optimism 
D) are pessimistic about the future 
A) recognize and seize commercial opportunities 
B) tend to be doggedly optimistic 
C) express conditional optimism 
D) are pessimistic about the future

Question 18

Mezzanine financing is temporary financing needed to keep the venture afloat until the next offering.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not considered to be a megatrend in this textbook?

Accepted Answer

A) societal, demographic, and technological changes 
B) crises and "bubbles" 
C) fads 
D) emerging economies and global changes 
A) societal, demographic, and technological changes 
B) crises and "bubbles" 
C) fads 
D) emerging economies and global changes

Question 20

Which of the following is not a life cycle stage of a successful venture?

Accepted Answer

A) development stage 
B) startup stage 
C) survival stage 
D) declining stage 
A) development stage 
B) startup stage 
C) survival stage 
D) declining stage

Which of the following is not a major source of startup financing for a venture's startup stage?

In the early 1970s, Harry Dent recognized that the U.S. economy centered on the creation and distribution of information.

One principle of entrepreneurial finance is "risk and expected reward go hand in hand."

Which of the following individuals once said, "I was seldom able to see an opportunity, until it ceased to be one."

A market-oriented economic system provides an environment that fosters the formation, development, and transformation of ideas into useful products and services.

The owner-debtholder conflict is the divergence of the owners' and lenders' self-interests as the firm gets close to going "public."

Financial distress occurs when cash flow is insufficient to meet current debt obligations.

Which of the following are sources of entrepreneurial opportunities?

The boomers generation applies to people born in the United States during the 1946-1964 time period.

The entrepreneurial process involves: developing opportunities, gathering resources, and managing and building operations, all with the goal of creating value.

Which of the following statements is correct?

The entrepreneurial process involves:

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

In the broadest context, societal change reflects the evolution of humanity over time.

Owner-manager (agency)conflicts are differences between a manager's self-interest and that of the owners who hired the manager.

A venture's financial objective is to survive.

Successful entrepreneurs do not exhibit which of the following traits?

Mezzanine financing is temporary financing needed to keep the venture afloat until the next offering.

Which of the following is not considered to be a megatrend in this textbook?

Which of the following is not a life cycle stage of a successful venture?

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

Which of the following is not a major source of startup financing for a venture's startup stage?

In the early 1970s, Harry Dent recognized that the U.S. economy centered on the creation and distribution of information.

One principle of entrepreneurial finance is "risk and expected reward go hand in hand."

Which of the following individuals once said, "I was seldom able to see an opportunity, until it ceased to be one."

A market-oriented economic system provides an environment that fosters the formation, development, and transformation of ideas into useful products and services.

The owner-debtholder conflict is the divergence of the owners' and lenders' self-interests as the firm gets close to going "public."

Financial distress occurs when cash flow is insufficient to meet current debt obligations.

Which of the following are sources of entrepreneurial opportunities?

The boomers generation applies to people born in the United States during the 1946-1964 time period.

The entrepreneurial process involves: developing opportunities, gathering resources, and managing and building operations, all with the goal of creating value.

Which of the following statements is correct?

The entrepreneurial process involves:

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

In the broadest context, societal change reflects the evolution of humanity over time.

Owner-manager (agency)conflicts are differences between a manager's self-interest and that of the owners who hired the manager.

A venture's financial objective is to survive.

Successful entrepreneurs do not exhibit which of the following traits?

Mezzanine financing is temporary financing needed to keep the venture afloat until the next offering.

Which of the following is not considered to be a megatrend in this textbook?

Which of the following is not a life cycle stage of a successful venture?

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