Question 1

Venture capitalists invest in approximately what percent of business plans presented to them?

Accepted Answer

A) 1%-3% 
B) 10%-13% 
C) 20%-23% 
D) 30%-33% 
A) 1%-3% 
B) 10%-13% 
C) 20%-23% 
D) 30%-33%

Question 2

A firm's option to abandon a venture is an example of a:

Accepted Answer

A) bootstrapping option 
B) financial option 
C) survival option 
D) real option 
A) bootstrapping option 
B) financial option 
C) survival option 
D) real option

Question 3

Venture opportunity screening involves assessment of an idea's commercial potential to produce revenue growth, financial performance, and value.

Accepted Answer

A) True 
 B)False

Question 4

Determine the cost of goods sold for a venture with the following financial information: revenues = $50,000; net profit margin = 20%; and gross profit margin = 70%

Accepted Answer

A) $40,000 
B) $35,000 
C) $15,000 
D) $10,000 
A) $40,000 
B) $35,000 
C) $15,000 
D) $10,000

Question 5

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 6

All else held constant, a higher asset turnover:

Accepted Answer

A) increases ROA 
B) decreases ROA 
C) has no effect on ROA 
D) may raise or lower ROA, depending on how it affects revenues. 
A) increases ROA 
B) decreases ROA 
C) has no effect on ROA 
D) may raise or lower ROA, depending on how it affects revenues.

Question 7

Revenues minus the cost of goods sold 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

Being first to market does not guarantee success.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Return on assets can be stated as:

Accepted Answer

A) net after-tax profit divided by total assets 
B) total assets divided by net after-tax profit 
C) total assets divided by revenues 
D) revenues divided by total assets 
A) net after-tax profit divided by total assets 
B) total assets divided by net after-tax profit 
C) total assets divided by revenues 
D) revenues divided by total assets

Question 11

If the asset intensity is 0.80, the asset turnover would be:

Accepted Answer

A) 0.80 times 
B) 1.00 times 
C) 1.25 times 
D) 1.50 times 
A) 0.80 times 
B) 1.00 times 
C) 1.25 times 
D) 1.50 times

Question 12

Free cash flow to equity is the cash flow from producing and selling a product or providing a service.

Accepted Answer

A) True 
 B)False

Question 13

Free cash flow to equity of an entrepreneurial firm includes cash flows to:

Accepted Answer

A) venture investors 
B) creditors 
C) the entrepreneur 
D) venture investors and the entrepreneur 
A) venture investors 
B) creditors 
C) the entrepreneur 
D) venture investors and the entrepreneur

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

A venture's value is determined by its:

Accepted Answer

A) future free cash flows (to equity) 
B) revenues 
C) profits 
D) assets 
A) future free cash flows (to equity) 
B) revenues 
C) profits 
D) assets

Question 17

A high asset intensity implies a large investment in fixed assets and/or net working capital is needed to support revenue growth.

Accepted Answer

A) True 
 B)False

Question 18

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 19

Asset intensity is:

Accepted Answer

A) total assets divided by total revenues 
B) total revenues divided by total assets 
C) calculated the same as asset turnover 
D) one-half of the asset turnover 
A) total assets divided by total revenues 
B) total revenues divided by total assets 
C) calculated the same as asset turnover 
D) one-half of the asset turnover

Question 20

A sound business model provides a plan to do all of the following except :

Accepted Answer

A) generate revenues 
B) make profits 
C) retain all its earnings 
D) produce free cash flows 
A) generate revenues 
B) make profits 
C) retain all its earnings 
D) produce free cash flows

Venture capitalists invest in approximately what percent of business plans presented to them?

A firm's option to abandon a venture is an example of a:

Venture opportunity screening involves assessment of an idea's commercial potential to produce revenue growth, financial performance, and value.

Determine the cost of goods sold for a venture with the following financial information: revenues = $50,000; net profit margin = 20%; and gross profit margin = 70%

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

All else held constant, a higher asset turnover:

Revenues minus the cost of goods sold is called:

Being first to market does not guarantee success.

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

Return on assets can be stated as:

If the asset intensity is 0.80, the asset turnover would be:

Free cash flow to equity is the cash flow from producing and selling a product or providing a service.

Free cash flow to equity of an entrepreneurial firm includes cash flows to:

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.

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

A venture's value is determined by its:

A high asset intensity implies a large investment in fixed assets and/or net working capital is needed to support revenue growth.

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."

Asset intensity is:

A sound business model provides a plan to do all of the following except :

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

Venture capitalists invest in approximately what percent of business plans presented to them?

A firm's option to abandon a venture is an example of a:

Venture opportunity screening involves assessment of an idea's commercial potential to produce revenue growth, financial performance, and value.

Determine the cost of goods sold for a venture with the following financial information: revenues = $50,000; net profit margin = 20%; and gross profit margin = 70%

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

All else held constant, a higher asset turnover:

Revenues minus the cost of goods sold is called:

Being first to market does not guarantee success.

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

Return on assets can be stated as:

If the asset intensity is 0.80, the asset turnover would be:

Free cash flow to equity is the cash flow from producing and selling a product or providing a service.

Free cash flow to equity of an entrepreneurial firm includes cash flows to:

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.

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

A venture's value is determined by its:

A high asset intensity implies a large investment in fixed assets and/or net working capital is needed to support revenue growth.

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."

Asset intensity is:

A sound business model provides a plan to do all of the following except :

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