Question 1

Which one of the following components is not a standard component of a sound business model?

Accepted Answer

A) produce low-cost products 
B) generate revenues 
C) make profits 
D) produce free cash flows 
A) produce low-cost products 
B) generate revenues 
C) make profits 
D) produce free cash flows

Question 2

"Entrepreneurial ventures" are firms that allow owners to pursue specific lifestyles while being paid for doing what they like to do.

Accepted Answer

A) True 
 B)False

Question 3

A SWOT analysis should consider the extent of existing competition and the likelihood of substitute products or services as potential strengths or opportunities.

Accepted Answer

A) True 
 B)False

Question 4

Effective entrepreneurial management teams should include all of the following except?

Accepted Answer

A) provide expertise in the areas of marketing,finance,and operations 
B) have successful experience in the venture's industry and markets 
C) work collaboratively with each other 
D) share the entrepreneurial spirit 
E) in-house accounting,auditing,and tax professionals 
A) provide expertise in the areas of marketing,finance,and operations 
B) have successful experience in the venture's industry and markets 
C) work collaboratively with each other 
D) share the entrepreneurial spirit 
E) in-house accounting,auditing,and tax professionals

Question 5

Bootstrapping refers to the process of minimizing resources such as the need for financial capital and finding unique sources for financing a new venture.

Accepted Answer

A) True 
 B)False

Question 6

Free cash flows,which can be paid back to investors occurs when cash generated from operations exceeds all of the following except?

Accepted Answer

A) borrowing costs 
B) non-cash depreciation 
C) taxes 
D) investment in assets 
A) borrowing costs 
B) non-cash depreciation 
C) taxes 
D) investment in assets

Question 7

At the end of a qualitative-based venture opportunity screening exercise,the interviewer prepares a subjective assessment and indicates one of the following except for:

Accepted Answer

A) natural commercial potential 
B) high commercial potential 
C) average commercial potential 
D) low commercial potential 
A) natural commercial potential 
B) high commercial potential 
C) average commercial potential 
D) low commercial potential

Question 8

A SWOT analysis focuses on strengths (S),worries (W),opportunities (O),and treats (T).

Accepted Answer

A) True 
 B)False

Question 9

Determine gross profit of a venture with the following
Financial information: cost of goods sold = $30,000; net profit = $17,000; asset turnover = 1.6; return on assets 32%

Accepted Answer

A) $85,000 
B) $72,000 
C) $55,000 
D) $38,000 
A) $85,000 
B) $72,000 
C) $55,000 
D) $38,000

Question 10

U.S.small businesses are predominately:

Accepted Answer

A) salary-replacement or entrepreneurial firms 
B) lifestyle or entrepreneurial firms 
C) entrepreneurial ventures 
D) salary-replacement or lifestyle firms 
A) salary-replacement or entrepreneurial firms 
B) lifestyle or entrepreneurial firms 
C) entrepreneurial ventures 
D) salary-replacement or lifestyle firms

Question 11

Best practices of high-growth,high-performance firms applied in the marketing practices area include "developing new products or services that are considered to be the best."

Accepted Answer

A) True 
 B)False

Question 12

Which one of the following is not a part of the VOS indicator?

Accepted Answer

A) industry/market considerations 
B) pricing/profitability considerations 
C) financial/harvest considerations 
D) management team considerations 
E) location/profitability considerations 
A) industry/market considerations 
B) pricing/profitability considerations 
C) financial/harvest considerations 
D) management team considerations 
E) location/profitability considerations

Question 13

A viable venture opportunity is characterized by all of the following except?

Accepted Answer

A) creating or meeting a customer need 
B) has perceived attraction to prospective investors 
C) provides an initial competitive advantage 
D) is timely in terms of time-to-market 
E) offers the expectation of added value to investors 
A) creating or meeting a customer need 
B) has perceived attraction to prospective investors 
C) provides an initial competitive advantage 
D) is timely in terms of time-to-market 
E) offers the expectation of added value to investors

Question 14

Best practices of high-growth,high-performance firms applied in the marketing 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 15

A sound business model should provide a plan to generate revenues,make profits,and produce free cash flows.

Accepted Answer

A) True 
 B)False

Question 16

The first two requirements of a sound business model are:

Accepted Answer

A) generate revenues,make profits 
B) make profits,produce free cash flows 
C) produce free cash flows for creditors and owners of the venture
Generate revenues and produce free cash flows 
A) generate revenues,make profits 
B) make profits,produce free cash flows 
C) produce free cash flows for creditors and owners of the venture
Generate revenues and produce free cash flows

Question 17

Determine the asset intensity of a venture with the following financial information: net profit = $22,000; revenues = $132,000; return on assets 30%.

Accepted Answer

A) .05 
B) .56 
C) 1.8 
D) 20 
A) .05 
B) .56 
C) 1.8 
D) 20

Question 18

A typical business plan includes all of the following sections except:

Accepted Answer

A) executive summary 
B) business description 
C) marketing plan and strategy 
D) disclosure of pending litigation 
E) operations and support 
A) executive summary 
B) business description 
C) marketing plan and strategy 
D) disclosure of pending litigation 
E) operations and support

Question 19

Determine the dollar amount of total assets for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

Accepted Answer

A) $100,000 
B) $250,000 
C) $375,000 
D) $500,000 
E) $650,000 
A) $100,000 
B) $250,000 
C) $375,000 
D) $500,000 
E) $650,000

Question 20

A venture's value is determined by

Accepted Answer

A) the size and timing of its future free cash flows 
B) time value of money 
C) its net income 
D) a and b 
E) a and c 
A) the size and timing of its future free cash flows 
B) time value of money 
C) its net income 
D) a and b 
E) a and c

Which one of the following components is not a standard component of a sound business model?

"Entrepreneurial ventures" are firms that allow owners to pursue specific lifestyles while being paid for doing what they like to do.

A SWOT analysis should consider the extent of existing competition and the likelihood of substitute products or services as potential strengths or opportunities.

Effective entrepreneurial management teams should include all of the following except?

Bootstrapping refers to the process of minimizing resources such as the need for financial capital and finding unique sources for financing a new venture.

Free cash flows,which can be paid back to investors occurs when cash generated from operations exceeds all of the following except?

At the end of a qualitative-based venture opportunity screening exercise,the interviewer prepares a subjective assessment and indicates one of the following except for:

A SWOT analysis focuses on strengths (S),worries (W),opportunities (O),and treats (T).

Determine gross profit of a venture with the following Financial information: cost of goods sold = $30,000; net profit = $17,000; asset turnover = 1.6; return on assets 32%

U.S.small businesses are predominately:

Best practices of high-growth,high-performance firms applied in the marketing practices area include "developing new products or services that are considered to be the best."

Which one of the following is not a part of the VOS indicator?

A viable venture opportunity is characterized by all of the following except?

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

A sound business model should provide a plan to generate revenues,make profits,and produce free cash flows.

The first two requirements of a sound business model are:

Determine the asset intensity of a venture with the following financial information: net profit = $22,000; revenues = $132,000; return on assets 30%.

A typical business plan includes all of the following sections except:

Determine the dollar amount of total assets for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

A venture's value is determined by

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

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Exam 2: Developing the Business Idea

Which one of the following components is not a standard component of a sound business model?

"Entrepreneurial ventures" are firms that allow owners to pursue specific lifestyles while being paid for doing what they like to do.

A SWOT analysis should consider the extent of existing competition and the likelihood of substitute products or services as potential strengths or opportunities.

Effective entrepreneurial management teams should include all of the following except?

Bootstrapping refers to the process of minimizing resources such as the need for financial capital and finding unique sources for financing a new venture.

Free cash flows,which can be paid back to investors occurs when cash generated from operations exceeds all of the following except?

At the end of a qualitative-based venture opportunity screening exercise,the interviewer prepares a subjective assessment and indicates one of the following except for:

A SWOT analysis focuses on strengths (S),worries (W),opportunities (O),and treats (T).

Determine gross profit of a venture with the following Financial information: cost of goods sold = $30,000; net profit = $17,000; asset turnover = 1.6; return on assets 32%

U.S.small businesses are predominately:

Best practices of high-growth,high-performance firms applied in the marketing practices area include "developing new products or services that are considered to be the best."

Which one of the following is not a part of the VOS indicator?

A viable venture opportunity is characterized by all of the following except?

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

A sound business model should provide a plan to generate revenues,make profits,and produce free cash flows.

The first two requirements of a sound business model are:

Determine the asset intensity of a venture with the following financial information: net profit = $22,000; revenues = $132,000; return on assets 30%.

A typical business plan includes all of the following sections except:

Determine the dollar amount of total assets for a venture with the following financial information: revenues = $500,000; net profit = $70,000; and asset turnover = 2.00 times.

A venture's value is determined by

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