Question 1

Indicate the number of principles of entrepreneurial finance that are emphasized in this textbook:

Accepted Answer

A) one 
B) three 
C) five 
D) seven 
E) nine 
A) one 
B) three 
C) five 
D) seven 
E) nine

Question 2

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

Accepted Answer

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

Question 3

Financial distress occurs when cash flow is insufficient to meet current debt obligations.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not a life cycle stage of a successful venture?

Accepted Answer

A) development stage 
B) startup stage 
C) survival stage 
D) cash cow stage 
E) maturity stage 
A) development stage 
B) startup stage 
C) survival stage 
D) cash cow stage 
E) maturity stage

Question 5

Small high-technology firms are responsible for twice as many product innovations per employee and obtain more patents per sales dollar than large high-technology firms.

Accepted Answer

A) True 
 B)False

Question 6

Nine principles of entrepreneurial finance are identified and explored in this entrepreneurial finance textbook,

Accepted Answer

A) True 
 B)False

Question 7

Studies by Phillips and Kirchhoff,and by Headd,found that one-half of new firms or new employers were still in existence after four years of operation.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following does not describe activity during the venture's life cycle startup stage?

Accepted Answer

A) venture's organization 
B) venture's development 
C) operating cash flows are generated 
D) initial revenue model is put in place 
A) venture's organization 
B) venture's development 
C) operating cash flows are generated 
D) initial revenue model is put in place

Question 9

Free cash flow is the net income forecast to be available to the venture's owners over time.

Accepted Answer

A) True 
 B)False

Question 10

Entrepreneurial finance is the application and adaptation of financial tools and techniques to the planning,funding,operations,and valuation of an entrepreneurial venture.

Accepted Answer

A) True 
 B)False

Question 11

Business angels are wealthy individuals acting as informal or private investors,who provide venture financing for small businesses.

Accepted Answer

A) True 
 B)False

Question 12

Free cash exists when cash exceeds that which is needed to operate,pay creditors,and invest in assets.

Accepted Answer

A) True 
 B)False

Question 13

Founder and venture investor shares are sold to the public after the initial offering to the public is called?

Accepted Answer

A) secondary market transaction 
B) secondary stock offering 
C) venture offering 
D) bridge loan 
A) secondary market transaction 
B) secondary stock offering 
C) venture offering 
D) bridge loan

Question 14

Maximizing the value of the venture to its owners is the common financial goal of which of the following?

Accepted Answer

A) the entrepreneur 
B) the debtholders 
C) the venture equity investors 
D) both a and b 
E) both a and c 
A) the entrepreneur 
B) the debtholders 
C) the venture equity investors 
D) both a and b 
E) both a and c

Question 15

The time value of money concept is associated with which one of the following principles of entrepreneurial finance:

Accepted Answer

A) real,human,and financial capital must be rented from owners 
B) risk and expected reward go hand in hand 
C) while accounting is the language of business,cash is the currency 
D) it is dangerous to assume that people act against their own self-interests 
A) real,human,and financial capital must be rented from owners 
B) risk and expected reward go hand in hand 
C) while accounting is the language of business,cash is the currency 
D) it is dangerous to assume that people act against their own self-interests

Question 16

The rapid growth stage directly follows the startup stage.

Accepted Answer

A) True 
 B)False

Question 17

Financial markets where customized contracts or securities are negotiated,created,and held with restrictions on how they can be transferred are called:

Accepted Answer

A) private financial markets 
B) public financial markets 
C) domestic financial markets 
D) international financial markets 
E) all of the above 
A) private financial markets 
B) public financial markets 
C) domestic financial markets 
D) international financial markets 
E) all of the above

Question 18

The last stage in a successful venture's life cycle is called the:

Accepted Answer

A) rapid growth stage 
B) maturity stage 
C) development stage 
D) survival stage 
E) startup stage 
A) rapid growth stage 
B) maturity stage 
C) development stage 
D) survival stage 
E) startup stage

Question 19

While entrepreneurial opportunities come from an almost unlimited number of sources,this textbook focuses on:

Accepted Answer

A) societal changes 
B) demographic changes 
C) technological changes 
D) all of the above 
E) none of the above 
A) societal changes 
B) demographic changes 
C) technological changes 
D) all of the above 
E) none of the above

Question 20

Phillips and Kirchhoff,using Dun & Bradstreet data,found that 24 percent of new firms were still in existence after two years of operation.

Accepted Answer

A) True 
 B)False

Indicate the number of principles of entrepreneurial finance that are emphasized in this textbook:

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

Financial distress occurs when cash flow is insufficient to meet current debt obligations.

Which of the following is not a life cycle stage of a successful venture?

Small high-technology firms are responsible for twice as many product innovations per employee and obtain more patents per sales dollar than large high-technology firms.

Nine principles of entrepreneurial finance are identified and explored in this entrepreneurial finance textbook,

Studies by Phillips and Kirchhoff,and by Headd,found that one-half of new firms or new employers were still in existence after four years of operation.

Which of the following does not describe activity during the venture's life cycle startup stage?

Free cash flow is the net income forecast to be available to the venture's owners over time.

Entrepreneurial finance is the application and adaptation of financial tools and techniques to the planning,funding,operations,and valuation of an entrepreneurial venture.

Business angels are wealthy individuals acting as informal or private investors,who provide venture financing for small businesses.

Free cash exists when cash exceeds that which is needed to operate,pay creditors,and invest in assets.

Founder and venture investor shares are sold to the public after the initial offering to the public is called?

Maximizing the value of the venture to its owners is the common financial goal of which of the following?

The time value of money concept is associated with which one of the following principles of entrepreneurial finance:

The rapid growth stage directly follows the startup stage.

Financial markets where customized contracts or securities are negotiated,created,and held with restrictions on how they can be transferred are called:

The last stage in a successful venture's life cycle is called the:

While entrepreneurial opportunities come from an almost unlimited number of sources,this textbook focuses on:

Phillips and Kirchhoff,using Dun & Bradstreet data,found that 24 percent of new firms were still in existence after two years of operation.

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

Exam 1: Introduction and Overview

Indicate the number of principles of entrepreneurial finance that are emphasized in this textbook:

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

Financial distress occurs when cash flow is insufficient to meet current debt obligations.

Which of the following is not a life cycle stage of a successful venture?

Small high-technology firms are responsible for twice as many product innovations per employee and obtain more patents per sales dollar than large high-technology firms.

Nine principles of entrepreneurial finance are identified and explored in this entrepreneurial finance textbook,

Studies by Phillips and Kirchhoff,and by Headd,found that one-half of new firms or new employers were still in existence after four years of operation.

Which of the following does not describe activity during the venture's life cycle startup stage?

Free cash flow is the net income forecast to be available to the venture's owners over time.

Entrepreneurial finance is the application and adaptation of financial tools and techniques to the planning,funding,operations,and valuation of an entrepreneurial venture.

Business angels are wealthy individuals acting as informal or private investors,who provide venture financing for small businesses.

Free cash exists when cash exceeds that which is needed to operate,pay creditors,and invest in assets.

Founder and venture investor shares are sold to the public after the initial offering to the public is called?

Maximizing the value of the venture to its owners is the common financial goal of which of the following?

The time value of money concept is associated with which one of the following principles of entrepreneurial finance:

The rapid growth stage directly follows the startup stage.

Financial markets where customized contracts or securities are negotiated,created,and held with restrictions on how they can be transferred are called:

The last stage in a successful venture's life cycle is called the:

While entrepreneurial opportunities come from an almost unlimited number of sources,this textbook focuses on:

Phillips and Kirchhoff,using Dun & Bradstreet data,found that 24 percent of new firms were still in existence after two years of operation.

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