Question 1

In a typical business plan, the section covering the management team does not need to disclose the management team's expertise and experience.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Business opportunities exist in real time, and most ideas have a relatively narrow window of opportunity to become successful business ventures.

Accepted Answer

A) True 
 B)False

Question 4

U.S. small businesses are predominately:

Accepted Answer

A) salary-replacement or entrepreneurial firms 
B) lifestyle or entrepreneurial firms 
C) entrepreneurial ventures 
D) salary-replacement or lifestyle firms 
A) salary-replacement or entrepreneurial firms 
B) lifestyle or entrepreneurial firms 
C) entrepreneurial ventures 
D) salary-replacement or lifestyle firms

Question 5

It has been estimated that venture capitalists invest in about 10 to 30 percent of business plans presented to them.

Accepted Answer

A) True 
 B)False

Question 6

In a study of high-growth, high-performance firms by the Kauffman Center for Entrepreneurial Leadership of best practices, 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 7

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

Accepted Answer

A) 0.1 
B) 0.6 
C) 1.8 
D) 2.0 
A) 0.1 
B) 0.6 
C) 1.8 
D) 2.0

Question 8

Best practices of high-growth, high-performance firms applied in the financial 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 9

Determine the net profit for a venture with the following financial information: revenues = $500,000; return on assets = 20%; and asset turnover = 2.0 times.

Accepted Answer

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

Question 10

Determine the return on assets (ROA)for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.0 times.

Accepted Answer

A) 10% 
B) 14% 
C) 28% 
D) 34% 
A) 10% 
B) 14% 
C) 28% 
D) 34%

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

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

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 14

Only a small number of new business ideas become viable business opportunities with funded business plans.

Accepted Answer

A) True 
 B)False

Question 15

A SWOT analysis does not focus on which of the following components or areas?

Accepted Answer

A) strengths 
B) weaknesses 
C) new ideas 
D) opportunities 
A) strengths 
B) weaknesses 
C) new ideas 
D) opportunities

Question 16

A viable venture opportunity creates or meets a customer need, provides an initial competitive advantage, is timely in terms of time-to-market, and offers the expectation of added value to investors.

Accepted Answer

A) True 
 B)False

Question 17

Free cash flow to equity is the cash available to the entrepreneur and venture investors after all of the following except :

Accepted Answer

A) net cash flows 
B) net increases in debt capital 
C) financing and tax cash flows 
D) investment in assets needed to sustain the venture's growth 
A) net cash flows 
B) net increases in debt capital 
C) financing and tax cash flows 
D) investment in assets needed to sustain the venture's growth

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The definition of an entrepreneurial firm is:

Accepted Answer

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

Question 20

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

Accepted Answer

A) True 
 B)False

In a typical business plan, the section covering the management team does not need to disclose the management team's expertise and experience.

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

Business opportunities exist in real time, and most ideas have a relatively narrow window of opportunity to become successful business ventures.

U.S. small businesses are predominately:

It has been estimated that venture capitalists invest in about 10 to 30 percent of business plans presented to them.

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

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

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

Determine the net profit for a venture with the following financial information: revenues = $500,000; return on assets = 20%; and asset turnover = 2.0 times.

Determine the return on assets (ROA)for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.0 times.

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

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

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

Only a small number of new business ideas become viable business opportunities with funded business plans.

A SWOT analysis does not focus on which of the following components or areas?

A viable venture opportunity creates or meets a customer need, provides an initial competitive advantage, is timely in terms of time-to-market, and offers the expectation of added value to investors.

Free cash flow to equity is the cash available to the entrepreneur and venture investors after all of the following except :

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

The definition of an entrepreneurial firm is:

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

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

In a typical business plan, the section covering the management team does not need to disclose the management team's expertise and experience.

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

Business opportunities exist in real time, and most ideas have a relatively narrow window of opportunity to become successful business ventures.

U.S. small businesses are predominately:

It has been estimated that venture capitalists invest in about 10 to 30 percent of business plans presented to them.

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

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

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

Determine the net profit for a venture with the following financial information: revenues = $500,000; return on assets = 20%; and asset turnover = 2.0 times.

Determine the return on assets (ROA)for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.0 times.

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

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

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

Only a small number of new business ideas become viable business opportunities with funded business plans.

A SWOT analysis does not focus on which of the following components or areas?

A viable venture opportunity creates or meets a customer need, provides an initial competitive advantage, is timely in terms of time-to-market, and offers the expectation of added value to investors.

Free cash flow to equity is the cash available to the entrepreneur and venture investors after all of the following except :

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

The definition of an entrepreneurial firm is:

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

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