Question 1

Which of the following statements is more likely to be true?

Accepted Answer

A)  Not all business costs can be classified as variable costs or fixed costs; the terms vary with the unit produced or the service provided 
B)  The higher the fixed costs, the easier it is to gain a high return on assets 
C)  The higher the variable costs, the easier it is to achieve a high gross margin 
D)  The higher the fixed costs, the easier it is to achieve a high gross margin 
A)  Not all business costs can be classified as variable costs or fixed costs; the terms vary with the unit produced or the service provided 
B)  The higher the fixed costs, the easier it is to gain a high return on assets 
C)  The higher the variable costs, the easier it is to achieve a high gross margin 
D)  The higher the fixed costs, the easier it is to achieve a high gross margin C

Question 2

Which of the following is NOT a group metric typically used for measuring start-up performance?

Accepted Answer

A)  Investment metrics. 
B)  Profitability metrics. 
C)  Funding metrics. 
D)  Customer metrics. 
A)  Investment metrics. 
B)  Profitability metrics. 
C)  Funding metrics. 
D)  Customer metrics. A

Question 3

COCA is generally calculated as:

Accepted Answer

A)  Total Assets minus Cash and Common Stock. 
B)  Gross Profit/Net Income. 
C)  Marketing & Sales expenses/number of new customers. 
D)  Fix costs/Contribution margin per unit. 
A)  Total Assets minus Cash and Common Stock. 
B)  Gross Profit/Net Income. 
C)  Marketing & Sales expenses/number of new customers. 
D)  Fix costs/Contribution margin per unit. C

Question 4

Which is true of managing money?

Accepted Answer

A)  Managing money is one of the most important aspects in building a company securely. 
B)  Not knowing precisely whether you have sufficient funds to execute your plans is one of the most stressful and dangerous threats to a company. 
C)  Highly profitable and fast-growing companies can go bankrupt from not managing money carefully. 
D)  All of the above are true about managing money. 
A)  Managing money is one of the most important aspects in building a company securely. 
B)  Not knowing precisely whether you have sufficient funds to execute your plans is one of the most stressful and dangerous threats to a company. 
C)  Highly profitable and fast-growing companies can go bankrupt from not managing money carefully. 
D)  All of the above are true about managing money.

Question 5

A legal document instructing an employee to return all materials that belong to the company at the time of termination is an example of an:

Accepted Answer

A)  Separation agreement. 
B)  ISO. 
C)  Full disclosure. 
D)  Employment agreement. 
A)  Separation agreement. 
B)  ISO. 
C)  Full disclosure. 
D)  Employment agreement.

Question 6

Book value is derived through an analysis of this financial statement: __________.

Accepted Answer

The answer of Book value is derived through an analysis...

Question 7

Which of the following is NOT a cultural attribute of a successful innovative company identified in the textbook?

Accepted Answer

A)  Risk 
B)  Honesty 
C)  Platitudes 
D)  Communication 
A)  Risk 
B)  Honesty 
C)  Platitudes 
D)  Communication

Question 8

__________ are costs that are identified with the product.

Accepted Answer

The answer of __________ are costs that are identified with...

Question 9

A __________ agreement clearly explains the conditions and expectations of an employee leaving the company.

Accepted Answer

The answer of A __________ agreement clearly explains the conditions...

Question 10

Cash disbursements can also be referred to as "cash out".

Accepted Answer

A) True 
 B)False

Question 11

Overdisclosing is far better than restricting information.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not a step of handling an employee resignation?

Accepted Answer

A)  Analyze. 
B)  Conduct an exit interview. 
C)  Celebrate. 
D)  Cause and effect. 
A)  Analyze. 
B)  Conduct an exit interview. 
C)  Celebrate. 
D)  Cause and effect.

Question 13

Under the IRR analysis, which of the following statements best describes the decision rule for potential investments?

Accepted Answer

A)  If the IRR of a potential investment is equal to or greater than the investor's required rate of return, the investment should be undertaken. 
B)  If the IRR is equal to or greater than the NPV of the investment, the investment should be undertaken. 
C)  If IRR is equal to or greater than breakeven point, the investment should be undertaken. 
D)  None of the above are true about IRR (internal rate of return). 
A)  If the IRR of a potential investment is equal to or greater than the investor's required rate of return, the investment should be undertaken. 
B)  If the IRR is equal to or greater than the NPV of the investment, the investment should be undertaken. 
C)  If IRR is equal to or greater than breakeven point, the investment should be undertaken. 
D)  None of the above are true about IRR (internal rate of return).

Question 14

_________ is the rate at which a new company uses up its cash to finance overhead before generating positive cash flow from operations.

Accepted Answer

The answer of _________ is the rate at which a...

Question 15

If the IRR of a potential investment is lesser than the required rate of return, the investment should be undertaken.

Accepted Answer

A) True 
 B)False

Question 16

The three major sections of the Balance Sheet are the:

Accepted Answer

A)  revenues, expenses, and current assets. 
B)  assets, liabilities, and equity. 
C)  cash, fixed assets, and interest payments. 
D)  cash flow, fixed assets and other assets, and debt structure. 
A)  revenues, expenses, and current assets. 
B)  assets, liabilities, and equity. 
C)  cash, fixed assets, and interest payments. 
D)  cash flow, fixed assets and other assets, and debt structure.

Question 17

A good manager never fires an employee.

Accepted Answer

A) True 
 B)False

Question 18

Which is true of managing people?

Accepted Answer

A)  It is important to create an organization in which all employees understand the core values that underpin decision making. 
B)  Once a corporate culture is established, an entrepreneur can passively manage the employees. 
C)  Leadership from the top is only necessary when problems arise within the organization. 
D)  All of the above are true. 
A)  It is important to create an organization in which all employees understand the core values that underpin decision making. 
B)  Once a corporate culture is established, an entrepreneur can passively manage the employees. 
C)  Leadership from the top is only necessary when problems arise within the organization. 
D)  All of the above are true.

Question 19

COH is the cash in all bank accounts __________ expected cash from customers, suppliers, and other accounts.

Accepted Answer

The answer of COH is the cash in all bank...

Question 20

Support, a cultural attribute of a successful innovative company, is the degree to which new ideas from all sources are welcomed and responded to promptly and appropriately.

Accepted Answer

A) True 
 B)False

Which of the following statements is more likely to be true?

Which of the following is NOT a group metric typically used for measuring start-up performance?

COCA is generally calculated as:

Which is true of managing money?

A legal document instructing an employee to return all materials that belong to the company at the time of termination is an example of an:

Book value is derived through an analysis of this financial statement: __________.

Which of the following is NOT a cultural attribute of a successful innovative company identified in the textbook?

__________ are costs that are identified with the product.

A __________ agreement clearly explains the conditions and expectations of an employee leaving the company.

Cash disbursements can also be referred to as "cash out".

Overdisclosing is far better than restricting information.

Which of the following is not a step of handling an employee resignation?

Under the IRR analysis, which of the following statements best describes the decision rule for potential investments?

_________ is the rate at which a new company uses up its cash to finance overhead before generating positive cash flow from operations.

If the IRR of a potential investment is lesser than the required rate of return, the investment should be undertaken.

The three major sections of the Balance Sheet are the:

A good manager never fires an employee.

Which is true of managing people?

COH is the cash in all bank accounts __________ expected cash from customers, suppliers, and other accounts.

Support, a cultural attribute of a successful innovative company, is the degree to which new ideas from all sources are welcomed and responded to promptly and appropriately.

Understanding the Entrepreneurial Process

Converting Ideas Into Opportunities

Framing and Testing the Business Model

Engaging Customers, Analyzing Competitors, for Market Entry Strategy

Preparing the Investor Package

Setting up the Company

Protecting Intellectual Property

Launching and Financing Your Venture

Equity Financing for High Growth

Pitching the Venture to Investors

Planning Your Exit

Filters

Exam 10: Managing Start-Up Performance/money and People

Which of the following statements is more likely to be true?

Which of the following is NOT a group metric typically used for measuring start-up performance?

COCA is generally calculated as:

Which is true of managing money?

A legal document instructing an employee to return all materials that belong to the company at the time of termination is an example of an:

Book value is derived through an analysis of this financial statement: __________.

Which of the following is NOT a cultural attribute of a successful innovative company identified in the textbook?

__________ are costs that are identified with the product.

A __________ agreement clearly explains the conditions and expectations of an employee leaving the company.

Cash disbursements can also be referred to as "cash out".

Overdisclosing is far better than restricting information.

Which of the following is not a step of handling an employee resignation?

Under the IRR analysis, which of the following statements best describes the decision rule for potential investments?

_________ is the rate at which a new company uses up its cash to finance overhead before generating positive cash flow from operations.

If the IRR of a potential investment is lesser than the required rate of return, the investment should be undertaken.

The three major sections of the Balance Sheet are the:

A good manager never fires an employee.

Which is true of managing people?

COH is the cash in all bank accounts __________ expected cash from customers, suppliers, and other accounts.

Support, a cultural attribute of a successful innovative company, is the degree to which new ideas from all sources are welcomed and responded to promptly and appropriately.

Understanding the Entrepreneurial Process

Converting Ideas Into Opportunities

Framing and Testing the Business Model

Engaging Customers, Analyzing Competitors, for Market Entry Strategy

Preparing the Investor Package

Setting up the Company

Protecting Intellectual Property

Launching and Financing Your Venture

Equity Financing for High Growth

Pitching the Venture to Investors

Planning Your Exit

Filters