Question 1

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  False

Question 2

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  True

Question 3

A typical business plan includes all of the following sections except :

Accepted Answer

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

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

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 9

A score in the range of 2.34-3.00 using the VOS Indicator™ would be considered a(n):

Accepted Answer

A) low score 
B) average score 
C) high score 
D) very high score 
A) low score 
B) average score 
C) high score 
D) very high score

Question 10

Business changes resulting in higher net profit always increases ROA.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

Which of the following assessment categories is not used at the end of a qualitative-based venture opportunity screening exercise?

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 14

Free cash flow, 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) noncash depreciation 
C) taxes 
D) investment in assets 
A) borrowing costs 
B) noncash depreciation 
C) taxes 
D) investment in assets

Question 15

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 16

When moving from entrepreneurial opportunities to new businesses, products, or services, which of the following is not considered a component?

Accepted Answer

A) ideas 
B) feasibility 
C) business plan 
D) harvest of venture 
A) ideas 
B) feasibility 
C) business plan 
D) harvest of venture

Question 17

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

Accepted Answer

A) creating or meeting a customer need 
B) having perceived attraction to prospective investors 
C) providing an initial competitive advantage 
D) being timely in terms of time-to-market 
A) creating or meeting a customer need 
B) having perceived attraction to prospective investors 
C) providing an initial competitive advantage 
D) being timely in terms of time-to-market

Question 18

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 19

The return on assets (ROA)model measures:

Accepted Answer

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

Question 20

Which of the following 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

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

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."

A typical business plan includes all of the following sections except :

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

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

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

The 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 score in the range of 2.34-3.00 using the VOS Indicator™ would be considered a(n):

Business changes resulting in higher net profit always increases ROA.

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

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).

Which of the following assessment categories is not used at the end of a qualitative-based venture opportunity screening exercise?

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

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

When moving from entrepreneurial opportunities to new businesses, products, or services, which of the following is not considered a component?

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

A VOS Indicator™ stands for:

The return on assets (ROA)model measures:

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

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

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

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."

A typical business plan includes all of the following sections except :

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

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

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

The 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 score in the range of 2.34-3.00 using the VOS Indicator™ would be considered a(n):

Business changes resulting in higher net profit always increases ROA.

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

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).

Which of the following assessment categories is not used at the end of a qualitative-based venture opportunity screening exercise?

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

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

When moving from entrepreneurial opportunities to new businesses, products, or services, which of the following is not considered a component?

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

A VOS Indicator™ stands for:

The return on assets (ROA)model measures:

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

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