Question 1

During the maturity stage of a venture's life cycle,the primary source of funds is in the form of:

Accepted Answer

A) mezzanine financing 
B) seed financing 
C) startup financing 
D) first round financing 
E) seasoned financing 
A) mezzanine financing 
B) seed financing 
C) startup financing 
D) first round financing 
E) seasoned financing

Question 2

Reasonable estimates place nonemployer (e.g. ,single person or small family)business started each year at less than 100,000.

Accepted Answer

A) True 
 B)False

Question 3

Successful entrepreneurs exhibit which of the following traits?

Accepted Answer

A) recognize and seize commercial opportunities 
B) economic pessimism 
C) tend to be doggedly optimistic 
D) both a and b 
E) both a and c 
A) recognize and seize commercial opportunities 
B) economic pessimism 
C) tend to be doggedly optimistic 
D) both a and b 
E) both a and c

Question 4

Mezzanine financing is temporary financing needed to keep the venture afloat until the next offering.

Accepted Answer

A) True 
 B)False

Question 5

Which of these statements is correct?

Accepted Answer

A) The development stage occurs between the startup and survival stages of a venture's life cycle 
B) The early-maturity stage is the final stage of a new venture's lifecycle 
C) Firms typically begin to cover all expenses with internally-generated funds during the survival stage 
D) During the startup stage,revenues grow much more rapidly than cash expenditures 
E) None of the above 
A) The development stage occurs between the startup and survival stages of a venture's life cycle 
B) The early-maturity stage is the final stage of a new venture's lifecycle 
C) Firms typically begin to cover all expenses with internally-generated funds during the survival stage 
D) During the startup stage,revenues grow much more rapidly than cash expenditures 
E) None of the above

Question 6

The last three stages of a successful venture's life cycle occur in the following order:

Accepted Answer

A) startup,development,rapid growth 
B) startup,survival,rapid growth 
C) survival,rapid growth,maturity 
D) development,startup,survival 
A) startup,development,rapid growth 
B) startup,survival,rapid growth 
C) survival,rapid growth,maturity 
D) development,startup,survival

Question 7

Which one of the following would not be considered a type of venture financing?

Accepted Answer

A) seed financing 
B) startup financing 
C) mezzanine financing 
D) liquidity-stage financing 
E) seasoned financing 
A) seed financing 
B) startup financing 
C) mezzanine financing 
D) liquidity-stage financing 
E) seasoned financing

Question 8

Free cash is all the cash available to cover operating expenses.

Accepted Answer

A) True 
 B)False

Question 9

Private financial markets are a place where standardized contracts or securities are traded on organized security exchanges with restrictions on how they can be transferred.

Accepted Answer

A) True 
 B)False

Question 10

One study of Inc.magazine's 500 high-growth firms suggests that about 88 percent of founders feel their firms' successes are due to extraordinary ideas,while the remaining 12 percent feel their firms' successes are due to exceptional execution of ordinary ideas.

Accepted Answer

A) True 
 B)False

Question 11

Free cash flows are adjusted for risk and the time value of money when used to calculate the value of a venture.

Accepted Answer

A) True 
 B)False

Question 12

An entrepreneur is an individual who thinks,reasons,and acts to convert ideas into commercial opportunities and to create value.

Accepted Answer

A) True 
 B)False

Question 13

About 60 percent of all newly created businesses in the U.S.are dissolved or cease operations within how many years after being started?

Accepted Answer

A) two years 
B) four years 
C) six years 
D) eight years 
A) two years 
B) four years 
C) six years 
D) eight years

Question 14

A project requires an initial investment of $1,000,000.In one year,there is a 40% chance of a $950,000 return;a 50% chance of a $1,200,000 return;and a 10% chance of a $2,000,000 return.What is the project's expected return one year from now?

Accepted Answer

A) 12.8% 
B) 15.5% 
C) 18.0% 
D) 38.3% 
A) 12.8% 
B) 15.5% 
C) 18.0% 
D) 38.3%

Question 15

A study by Phillips and Kirchhoff using Dun & Bradstreet data found that about three-fourths of new firms were still in existence after two years of operation.

Accepted Answer

A) True 
 B)False

Question 16

The so-called "baby boom" generation applies to people born in the United States during the 1946-1964 time period.

Accepted Answer

A) True 
 B)False

Question 17

Mark Twain once said,"I was always able to see an opportunity before it became one."

Accepted Answer

A) True 
 B)False

Question 18

Three major megatrends discussed in Chapter 1 include: societal trends or changes,demographic trends or changes,and technological trends or changes.

Accepted Answer

A) True 
 B)False

Question 19

"Fads" are not predictable,have short lives,and do not involve macro changes.

Accepted Answer

A) True 
 B)False

Question 20

Entrepreneurs provide the financing to individuals who think,reason,and act to convert ideas into commercial opportunities and create opportunities.

Accepted Answer

A) True 
 B)False

During the maturity stage of a venture's life cycle,the primary source of funds is in the form of:

Reasonable estimates place nonemployer (e.g. ,single person or small family)business started each year at less than 100,000.

Successful entrepreneurs exhibit which of the following traits?

Mezzanine financing is temporary financing needed to keep the venture afloat until the next offering.

Which of these statements is correct?

The last three stages of a successful venture's life cycle occur in the following order:

Which one of the following would not be considered a type of venture financing?

Free cash is all the cash available to cover operating expenses.

Private financial markets are a place where standardized contracts or securities are traded on organized security exchanges with restrictions on how they can be transferred.

One study of Inc.magazine's 500 high-growth firms suggests that about 88 percent of founders feel their firms' successes are due to extraordinary ideas,while the remaining 12 percent feel their firms' successes are due to exceptional execution of ordinary ideas.

Free cash flows are adjusted for risk and the time value of money when used to calculate the value of a venture.

An entrepreneur is an individual who thinks,reasons,and acts to convert ideas into commercial opportunities and to create value.

About 60 percent of all newly created businesses in the U.S.are dissolved or cease operations within how many years after being started?

A project requires an initial investment of $1,000,000.In one year,there is a 40% chance of a $950,000 return;a 50% chance of a $1,200,000 return;and a 10% chance of a $2,000,000 return.What is the project's expected return one year from now?

A study by Phillips and Kirchhoff using Dun & Bradstreet data found that about three-fourths of new firms were still in existence after two years of operation.

The so-called "baby boom" generation applies to people born in the United States during the 1946-1964 time period.

Mark Twain once said,"I was always able to see an opportunity before it became one."

Three major megatrends discussed in Chapter 1 include: societal trends or changes,demographic trends or changes,and technological trends or changes.

"Fads" are not predictable,have short lives,and do not involve macro changes.

Entrepreneurs provide the financing to individuals who think,reason,and act to convert ideas into commercial opportunities and create opportunities.

From the Idea to the Business Plan

Organizing and Financing a New Venture

Measuring Financial Performance

Evaluating Financial Performance

Financial Planning:short Term and Long Term

Types and Costs of Financial Capital

Securities Law Considerations When Obtaining Venture Financing

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

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Exam 1: Introduction and Overview

During the maturity stage of a venture's life cycle,the primary source of funds is in the form of:

Reasonable estimates place nonemployer (e.g. ,single person or small family)business started each year at less than 100,000.

Successful entrepreneurs exhibit which of the following traits?

Mezzanine financing is temporary financing needed to keep the venture afloat until the next offering.

Which of these statements is correct?

The last three stages of a successful venture's life cycle occur in the following order:

Which one of the following would not be considered a type of venture financing?

Free cash is all the cash available to cover operating expenses.

Private financial markets are a place where standardized contracts or securities are traded on organized security exchanges with restrictions on how they can be transferred.

One study of Inc.magazine's 500 high-growth firms suggests that about 88 percent of founders feel their firms' successes are due to extraordinary ideas,while the remaining 12 percent feel their firms' successes are due to exceptional execution of ordinary ideas.

Free cash flows are adjusted for risk and the time value of money when used to calculate the value of a venture.

An entrepreneur is an individual who thinks,reasons,and acts to convert ideas into commercial opportunities and to create value.

About 60 percent of all newly created businesses in the U.S.are dissolved or cease operations within how many years after being started?

A project requires an initial investment of $1,000,000.In one year,there is a 40% chance of a $950,000 return;a 50% chance of a $1,200,000 return;and a 10% chance of a $2,000,000 return.What is the project's expected return one year from now?

A study by Phillips and Kirchhoff using Dun & Bradstreet data found that about three-fourths of new firms were still in existence after two years of operation.

The so-called "baby boom" generation applies to people born in the United States during the 1946-1964 time period.

Mark Twain once said,"I was always able to see an opportunity before it became one."

Three major megatrends discussed in Chapter 1 include: societal trends or changes,demographic trends or changes,and technological trends or changes.

"Fads" are not predictable,have short lives,and do not involve macro changes.

Entrepreneurs provide the financing to individuals who think,reason,and act to convert ideas into commercial opportunities and create opportunities.

From the Idea to the Business Plan

Organizing and Financing a New Venture

Measuring Financial Performance

Evaluating Financial Performance

Financial Planning:short Term and Long Term

Types and Costs of Financial Capital

Securities Law Considerations When Obtaining Venture Financing

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