Question 1

The type of financing that occurs during the survival stage of a venture's life cycle is typically referred to as the:

Accepted Answer

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

Question 2

Obtaining bank loan,issuing bonds,and issuing stock is characteristic of which type of financing during the venture's life cycle?

Accepted Answer

A) seed financing 
B) second round financing 
C) mezzanine financing 
D) seasoned financing 
E) liquidity stage financing 
A) seed financing 
B) second round financing 
C) mezzanine financing 
D) seasoned financing 
E) liquidity stage financing D

Question 3

The financial objective of increasing value is inconsistent with developing positive character and reputation.

Accepted Answer

A) True 
 B)False  False

Question 4

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 5

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

Accepted Answer

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

Question 6

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 7

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 8

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 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

Small and growing enterprises are critical to the U.S.economy; small firms provide 20 to 30 percent of net new jobs.

Accepted Answer

A) True 
 B)False

Question 12

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 13

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

Question 14

The owner-debtholder conflict is the divergence of the owners' and lenders' self-interest as the firm gets close to going "public."

Accepted Answer

A) True 
 B)False

Question 15

Which is not a major source of start-up financing for a venture's startup stage?

Accepted Answer

A) entrepreneur's assets 
B) business operations 
C) family and friends 
D) business angels 
E) venture capitalists 
A) entrepreneur's assets 
B) business operations 
C) family and friends 
D) business angels 
E) venture capitalists

Question 16

Which stage in the venture life cycle is characterized by creating and building value,obtaining additional financing,and examining opportunities?

Accepted Answer

A) survival stage 
B) startup stage 
C) rapid growth stage 
D) early-maturity stage 
A) survival stage 
B) startup stage 
C) rapid growth stage 
D) early-maturity stage

Question 17

At which stage of the venture's life cycle stage is best characterized by the period when revenues start to grow and when cash flows from operations begin covering cash outflows?

Accepted Answer

A) survival stage 
B) startup stage 
C) rapid growth stage 
D) early-maturity stage 
A) survival stage 
B) startup stage 
C) rapid growth stage 
D) early-maturity stage

Question 18

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 19

The second stage in a successful venture's life cycle is the startup stage.

Accepted Answer

A) True 
 B)False

Question 20

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

The type of financing that occurs during the survival stage of a venture's life cycle is typically referred to as the:

Obtaining bank loan,issuing bonds,and issuing stock is characteristic of which type of financing during the venture's life cycle?

The financial objective of increasing value is inconsistent with developing positive character and reputation.

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

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

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

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

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

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

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

Small and growing enterprises are critical to the U.S.economy; small firms provide 20 to 30 percent of net new jobs.

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

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

The owner-debtholder conflict is the divergence of the owners' and lenders' self-interest as the firm gets close to going "public."

Which is not a major source of start-up financing for a venture's startup stage?

Which stage in the venture life cycle is characterized by creating and building value,obtaining additional financing,and examining opportunities?

At which stage of the venture's life cycle stage is best characterized by the period when revenues start to grow and when cash flows from operations begin covering cash outflows?

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

The second stage in a successful venture's life cycle is the startup stage.

Successful entrepreneurs exhibit which of the following traits?

Developing the Business Idea

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 1: Introduction to Finance for Entrepreneurs

The type of financing that occurs during the survival stage of a venture's life cycle is typically referred to as the:

Obtaining bank loan,issuing bonds,and issuing stock is characteristic of which type of financing during the venture's life cycle?

The financial objective of increasing value is inconsistent with developing positive character and reputation.

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

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

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

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

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

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

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

Small and growing enterprises are critical to the U.S.economy; small firms provide 20 to 30 percent of net new jobs.

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

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

The owner-debtholder conflict is the divergence of the owners' and lenders' self-interest as the firm gets close to going "public."

Which is not a major source of start-up financing for a venture's startup stage?

Which stage in the venture life cycle is characterized by creating and building value,obtaining additional financing,and examining opportunities?

At which stage of the venture's life cycle stage is best characterized by the period when revenues start to grow and when cash flows from operations begin covering cash outflows?

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

The second stage in a successful venture's life cycle is the startup stage.

Successful entrepreneurs exhibit which of the following traits?

Developing the Business Idea

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