Question 1

Which of the following is not one of the three methods used to measure financial performance?

Accepted Answer

A)  Sales performance 
B)  Customer service 
C)  Profits 
D)  Cash generated 
A)  Sales performance 
B)  Customer service 
C)  Profits 
D)  Cash generated

Question 2

The difference between book value and going concern value is called goodwill.

Accepted Answer

A) True 
 B)False

Question 3

___________ accounting does not recognize that cash may have been required to purchase materials, labor, and other resources in advance of the sale.

Accepted Answer

The answer of ___________ accounting does not recognize that cash...

Question 4

"I trust the people I work with. I find it easy to be open and honest with people from other departments" is an example statement of ____________.

Accepted Answer

The answer of "I trust the people I work with....

Question 5

The longer the runway, the quicker the burn rate.

Accepted Answer

A) True 
 B)False

Question 6

__________ is the difference between revenues and expenses as reported in the income statements.

Accepted Answer

The answer of __________ is the difference between revenues and...

Question 7

A cost that varies proportionately with increases in activity is called:

Accepted Answer

A)  a variable cost. 
B)  a fixed cost. 
C)  a semi-variable cost. 
D)  none of the above. 
A)  a variable cost. 
B)  a fixed cost. 
C)  a semi-variable cost. 
D)  none of the above.

Question 8

Which of the following statements is TRUE?

Accepted Answer

A)  Working capital and fixed costs act like a variable cost 
B)  Working capital and fixed assets act like a fixed cost 
C)  Working capital acts like a variable cost; fixed assets act like a fixed cost 
D)  Working capital acts like a fixed cost; fixed assets act like a variable cost 
A)  Working capital and fixed costs act like a variable cost 
B)  Working capital and fixed assets act like a fixed cost 
C)  Working capital acts like a variable cost; fixed assets act like a fixed cost 
D)  Working capital acts like a fixed cost; fixed assets act like a variable cost

Question 9

The balance sheet equation is:

Accepted Answer

A)  Liabilities + shareholder equity = Assets 
B)  Shareholder equity - Liabilities = Assets 
C)  Shareholder equity + cash = Assets 
D)  Assets-Liabilities = Shareholder equity 
A)  Liabilities + shareholder equity = Assets 
B)  Shareholder equity - Liabilities = Assets 
C)  Shareholder equity + cash = Assets 
D)  Assets-Liabilities = Shareholder equity

Question 10

The Income Statement:

Accepted Answer

A)  Represents Assets=liabilities + shareholder equity. 
B)  Allows a manager to monitor deterioration in shareholder equity. 
C)  Allows a manager to see how profitable the company is on a monthly and annual basis. 
D)  Shows the company's long-term asset position. 
A)  Represents Assets=liabilities + shareholder equity. 
B)  Allows a manager to monitor deterioration in shareholder equity. 
C)  Allows a manager to see how profitable the company is on a monthly and annual basis. 
D)  Shows the company's long-term asset position.

Question 11

A(n) __________ is when you ask yourself, "If one of the stakeholders finds our later what happened, could this be embarrassing or worse, create serious problems, even legal repercussions?"

Accepted Answer

The answer of A(n) __________ is when you ask yourself,...

Question 12

The amount available for dividends or reinvestment in the company is called:

Accepted Answer

A)  Profit. 
B)  Net income. 
C)  EBIT. 
D)  Sales. 
A)  Profit. 
B)  Net income. 
C)  EBIT. 
D)  Sales.

Question 13

Which of the following statements is true?

Accepted Answer

A)  Revenues remain constant, regardless of the level of business activity 
B)  Variable costs remain constant, regardless of the level of business activity 
C)  The ratio of fixed to variable costs is likely to decline as business activity increases 
D)  The ratio of fixed to variable costs is likely to increase as business activity increases 
A)  Revenues remain constant, regardless of the level of business activity 
B)  Variable costs remain constant, regardless of the level of business activity 
C)  The ratio of fixed to variable costs is likely to decline as business activity increases 
D)  The ratio of fixed to variable costs is likely to increase as business activity increases

Question 14

How many units must be sold for this company to achieve breakeven (answer in units)?
Data:
Estimated selling price per unit: $10
Estimated variable cost per unit: $6
Estimated fixed costs: $100,000

Accepted Answer

A)  400,000 units. 
B)  25,000 units. 
C)  600,000 units. 
D)  Cannot be calculated from this data. 
A)  400,000 units. 
B)  25,000 units. 
C)  600,000 units. 
D)  Cannot be calculated from this data.

Question 15

To increase the lifetime value of your customers, all but which one of these objectives apply?

Accepted Answer

A)  Increase length of time a customer buys from you 
B)  Decrease length of time a customer buys from you 
C)  Increase the amount customers spend on each purchase 
D)  Decrease the time between purchases 
A)  Increase length of time a customer buys from you 
B)  Decrease length of time a customer buys from you 
C)  Increase the amount customers spend on each purchase 
D)  Decrease the time between purchases

Question 16

Which of the following is NOT one of the eleven categories of a standard budget?

Accepted Answer

A)  Net Income 
B)  EBIT 
C)  COH 
D)  Operating Profit 
A)  Net Income 
B)  EBIT 
C)  COH 
D)  Operating Profit

Question 17

You cannot use a separation agreement when someone leaves the company voluntarily.

Accepted Answer

A) True 
 B)False

Question 18

Incentive stock options:

Accepted Answer

A)  are rarely used today. 
B)  are only available to employees. 
C)  are not available to employees. 
D)  are generally transferred to investors. 
A)  are rarely used today. 
B)  are only available to employees. 
C)  are not available to employees. 
D)  are generally transferred to investors.

Question 19

"The degree to which there is both planned and random interaction between functions and division at all levels of the organization" is the definition of which cultural attribute of a successful innovative company?

Accepted Answer

A)  Freedom 
B)  Support 
C)  Engagement 
D)  Communication 
A)  Freedom 
B)  Support 
C)  Engagement 
D)  Communication

Question 20

To use the breakeven technique, you need all but which one of the following types of information:

Accepted Answer

A)  fixed costs of operation 
B)  variable costs of production 
C)  price per unit 
D)  lifetime value of a customer 
A)  fixed costs of operation 
B)  variable costs of production 
C)  price per unit 
D)  lifetime value of a customer

Which of the following is not one of the three methods used to measure financial performance?

The difference between book value and going concern value is called goodwill.

___________ accounting does not recognize that cash may have been required to purchase materials, labor, and other resources in advance of the sale.

"I trust the people I work with. I find it easy to be open and honest with people from other departments" is an example statement of ____________.

The longer the runway, the quicker the burn rate.

__________ is the difference between revenues and expenses as reported in the income statements.

A cost that varies proportionately with increases in activity is called:

Which of the following statements is TRUE?

The balance sheet equation is:

The Income Statement:

A(n) __________ is when you ask yourself, "If one of the stakeholders finds our later what happened, could this be embarrassing or worse, create serious problems, even legal repercussions?"

The amount available for dividends or reinvestment in the company is called:

Which of the following statements is true?

How many units must be sold for this company to achieve breakeven (answer in units)? Data: Estimated selling price per unit: $10 Estimated variable cost per unit: $6 Estimated fixed costs: $100,000

To increase the lifetime value of your customers, all but which one of these objectives apply?

Which of the following is NOT one of the eleven categories of a standard budget?

You cannot use a separation agreement when someone leaves the company voluntarily.

Incentive stock options:

"The degree to which there is both planned and random interaction between functions and division at all levels of the organization" is the definition of which cultural attribute of a successful innovative company?

To use the breakeven technique, you need all but which one of the following types of information:

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 is not one of the three methods used to measure financial performance?

The difference between book value and going concern value is called goodwill.

___________ accounting does not recognize that cash may have been required to purchase materials, labor, and other resources in advance of the sale.

"I trust the people I work with. I find it easy to be open and honest with people from other departments" is an example statement of ____________.

The longer the runway, the quicker the burn rate.

__________ is the difference between revenues and expenses as reported in the income statements.

A cost that varies proportionately with increases in activity is called:

Which of the following statements is TRUE?

The balance sheet equation is:

The Income Statement:

A(n) __________ is when you ask yourself, "If one of the stakeholders finds our later what happened, could this be embarrassing or worse, create serious problems, even legal repercussions?"

The amount available for dividends or reinvestment in the company is called:

Which of the following statements is true?

How many units must be sold for this company to achieve breakeven (answer in units)? Data: Estimated selling price per unit: $10 Estimated variable cost per unit: $6 Estimated fixed costs: $100,000

To increase the lifetime value of your customers, all but which one of these objectives apply?

Which of the following is NOT one of the eleven categories of a standard budget?

You cannot use a separation agreement when someone leaves the company voluntarily.

Incentive stock options:

"The degree to which there is both planned and random interaction between functions and division at all levels of the organization" is the definition of which cultural attribute of a successful innovative company?

To use the breakeven technique, you need all but which one of the following types of information:

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