Question 1

Determine the cost of goods sold for a venture with the following financial information: revenues = $50,000; net profit margin = 20%;
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 2

Lifestyle firms are growth-driven in terms of revenues,profits,and cash flows and also performance-oriented as reflected in rapid value creation over time.

Accepted Answer

A) True 
 B)False

Question 3

An entrepreneur may start a number of different types of businesses,including salary-replacement firms,lifestyle firms,and entrepreneurial firms or ventures.

Accepted Answer

A) True 
 B)False

Question 4

SWOT analysis should at the very least consider which of the following areas:

Accepted Answer

A) experience/expertise 
B) reputation value 
C) first mover 
D) a and b 
E) a,b,and c 
A) experience/expertise 
B) reputation value 
C) first mover 
D) a and b 
E) a,b,and c

Question 5

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 6

For ventures that first get to market or create intellectual property rights,it's common to price new products or services at high markups or profit margins.

Accepted Answer

A) True 
 B)False

Question 7

In the venture life cycle,moving from the development stage to the startup stage frequently begins with the preparation of a business plan.The business plan is a written document that describes the proposed venture in all of the following terms except:

Accepted Answer

A) the proposed product or service opportunity 
B) the accounting data for the last five years 
C) current resources available to the venture 
D) financial projections 
A) the proposed product or service opportunity 
B) the accounting data for the last five years 
C) current resources available to the venture 
D) financial projections

Question 8

A successful,sound business model does not have to ultimately produce free cash flows.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The compound rate of return that equates the present value of the cash inflows with the initial investment outlay is called the internal rate of return (IRR).

Accepted Answer

A) True 
 B)False

Question 11

Determine the return on assets (ROA)for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

Accepted Answer

A) 10% 
B) 14% 
C) 20% 
D) 28% 
E) 34% 
A) 10% 
B) 14% 
C) 20% 
D) 28% 
E) 34%

Question 12

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 13

Business changes resulting in higher net profit always increases ROA.

Accepted Answer

A) True 
 B)False

Question 14

A sound business model provides a plan which includes all of the following except?

Accepted Answer

A) generates revenues 
B) makes profits 
C) retains all its earnings 
D) produces free cash flows 
E) all of the above are included 
A) generates revenues 
B) makes profits 
C) retains all its earnings 
D) produces free cash flows 
E) all of the above are included

Question 15

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 16

Best practices of high-growth,high-performance firms applied in the financial 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 17

A typical business plan includes all of the following except:

Accepted Answer

A) management team 
B) financial plans and projections 
C) risk and opportunities 
D) timeline and milestones 
E) initial public offering information 
A) management team 
B) financial plans and projections 
C) risk and opportunities 
D) timeline and milestones 
E) initial public offering information

Question 18

"Salary-replacement" firms provide their owners with income levels comparable to what they could have earned working for much larger firms.

Accepted Answer

A) True 
 B)False

Question 19

Determine the dollar amount of net profit for a venture with the following financial information: revenues = $500,000; return on assets = 20%; and asset turnover = 2.00 times.

Accepted Answer

A) $10,000 
B) $25,000 
C) $50,000 
D) $60,000 
E) $75,000 
A) $10,000 
B) $25,000 
C) $50,000 
D) $60,000 
E) $75,000

Question 20

Free cash flow to equity is the cash available to the entrepreneur and venture investors after all of the following except?

Accepted Answer

A) net cash flows 
B) operating cash outflows 
C) financing and tax cash flows 
D) investment in assets needed to sustain the venture's group 
E) net increase in debt capital 
A) net cash flows 
B) operating cash outflows 
C) financing and tax cash flows 
D) investment in assets needed to sustain the venture's group 
E) net increase in debt capital

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

Lifestyle firms are growth-driven in terms of revenues,profits,and cash flows and also performance-oriented as reflected in rapid value creation over time.

An entrepreneur may start a number of different types of businesses,including salary-replacement firms,lifestyle firms,and entrepreneurial firms or ventures.

SWOT analysis should at the very least consider which of the following areas:

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

For ventures that first get to market or create intellectual property rights,it's common to price new products or services at high markups or profit margins.

In the venture life cycle,moving from the development stage to the startup stage frequently begins with the preparation of a business plan.The business plan is a written document that describes the proposed venture in all of the following terms except:

A successful,sound business model does not have to ultimately produce free cash flows.

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

The compound rate of return that equates the present value of the cash inflows with the initial investment outlay is called the internal rate of return (IRR).

Determine the return on assets (ROA)for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

All else held constant,a higher asset turnover:

Business changes resulting in higher net profit always increases ROA.

A sound business model provides a plan which includes all of the following except?

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.

Best practices of high-growth,high-performance firms applied in the financial practices area include "preparing detailed monthly financial plans for the next year and annual financial plans for the next five years.

A typical business plan includes all of the following except:

"Salary-replacement" firms provide their owners with income levels comparable to what they could have earned working for much larger firms.

Determine the dollar amount of net profit for a venture with the following financial information: revenues = $500,000; return on assets = 20%; and asset turnover = 2.00 times.

Free cash flow to equity is the cash available to the entrepreneur and venture investors after 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

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

Lifestyle firms are growth-driven in terms of revenues,profits,and cash flows and also performance-oriented as reflected in rapid value creation over time.

An entrepreneur may start a number of different types of businesses,including salary-replacement firms,lifestyle firms,and entrepreneurial firms or ventures.

SWOT analysis should at the very least consider which of the following areas:

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

For ventures that first get to market or create intellectual property rights,it's common to price new products or services at high markups or profit margins.

In the venture life cycle,moving from the development stage to the startup stage frequently begins with the preparation of a business plan.The business plan is a written document that describes the proposed venture in all of the following terms except:

A successful,sound business model does not have to ultimately produce free cash flows.

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

The compound rate of return that equates the present value of the cash inflows with the initial investment outlay is called the internal rate of return (IRR).

Determine the return on assets (ROA)for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

All else held constant,a higher asset turnover:

Business changes resulting in higher net profit always increases ROA.

A sound business model provides a plan which includes all of the following except?

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.

Best practices of high-growth,high-performance firms applied in the financial practices area include "preparing detailed monthly financial plans for the next year and annual financial plans for the next five years.

A typical business plan includes all of the following except:

"Salary-replacement" firms provide their owners with income levels comparable to what they could have earned working for much larger firms.

Determine the dollar amount of net profit for a venture with the following financial information: revenues = $500,000; return on assets = 20%; and asset turnover = 2.00 times.

Free cash flow to equity is the cash available to the entrepreneur and venture investors after 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