Question 1

Which of the following is considered to be an "agency" conflict?

Accepted Answer

A) owner-manager conflict 
B) stockholder-manager conflict 
C) stockholder-debtholder conflict 
D) manager-debtholder conflict 
A) owner-manager conflict 
B) stockholder-manager conflict 
C) stockholder-debtholder conflict 
D) manager-debtholder conflict

Question 2

"Fads" are:

Accepted Answer

A) not predictable 
B) have short lives 
C) do not involve macro changes 
D) all of the above 
A) not predictable 
B) have short lives 
C) do not involve macro changes 
D) all of the above

Question 3

Early-stage ventures include firms in their development,startup,orsurvival live cycle stages.

Accepted Answer

A) True 
 B)False

Question 4

The goal of the entrepreneurial process is to:

Accepted Answer

A) develop opportunities 
B) gather resources 
C) manage and build operations 
D) create value 
A) develop opportunities 
B) gather resources 
C) manage and build operations 
D) create value

Question 5

Nearly half of business failures are due to economic factors such as inadequate sales,insufficient profits,and industry weakness.

Accepted Answer

A) True 
 B)False

Question 6

Which one of the following possible conflicts of interest increases in divergence at venture gets close to bankruptcy?

Accepted Answer

A) owner-manager conflict 
B) owner-employee conflict 
C) manager-employee conflict 
D) manager-debtholder conflict 
A) owner-manager conflict 
B) owner-employee conflict 
C) manager-employee conflict 
D) manager-debtholder conflict

Question 7

The rapid growth stage directly follows the startup stage.

Accepted Answer

A) True 
 B)False

Question 8

Assume that you can sell a new product at $5.00 per unit.Your variable costs are $3.00 per unit and you fixed costs are $20,000.What will be your profit before taxes if you sell 12,000 units next year?

Accepted Answer

A) $0 
B) $1,000 
C) $2,000 
D) $4,000 
E) $8,000 
A) $0 
B) $1,000 
C) $2,000 
D) $4,000 
E) $8,000

Question 9

"Fads" are large societal,demographic,or technological trends or changes that are slow in forming but once in place continue for many years.

Accepted Answer

A) True 
 B)False

Question 10

The Office of Advocacy of the U.S.Small Business Administration documents that "employer firm births" have exceeded 700,000 annually in recent years.

Accepted Answer

A) True 
 B)False

Question 11

"E-commerce" refers to:

Accepted Answer

A) environmental commerce 
B) electronic commerce 
C) economic commerce 
D) exploratory commerce 
A) environmental commerce 
B) electronic commerce 
C) economic commerce 
D) exploratory commerce

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

During a venture's rapid growth stage,funds for plant expansion,marketing expenditures,working capital,and product or service improvements is obtained through?

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

Question 15

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

Question 16

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 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

You have the opportunity of making a $5,000 investment.The outcomes one year from now will be either $4,500 or $6,000 with an equal chance of either outcome occurring.What is the expected outcome?

Accepted Answer

A) $4,500 
B) $6,000 
C) $5,250 
D) $5,750 
E) $5,000 
A) $4,500 
B) $6,000 
C) $5,250 
D) $5,750 
E) $5,000

Question 20

Which of the following is not considered to be a mega-trend in this textbook?

Accepted Answer

A) societal,demographic,and technological changes 
B) crises and bubbles 
C) fads 
D) emerging economies and global changes 
A) societal,demographic,and technological changes 
B) crises and bubbles 
C) fads 
D) emerging economies and global changes

Which of the following is considered to be an "agency" conflict?

"Fads" are:

Early-stage ventures include firms in their development,startup,orsurvival live cycle stages.

The goal of the entrepreneurial process is to:

Nearly half of business failures are due to economic factors such as inadequate sales,insufficient profits,and industry weakness.

Which one of the following possible conflicts of interest increases in divergence at venture gets close to bankruptcy?

The rapid growth stage directly follows the startup stage.

Assume that you can sell a new product at $5.00 per unit.Your variable costs are $3.00 per unit and you fixed costs are $20,000.What will be your profit before taxes if you sell 12,000 units next year?

"Fads" are large societal,demographic,or technological trends or changes that are slow in forming but once in place continue for many years.

The Office of Advocacy of the U.S.Small Business Administration documents that "employer firm births" have exceeded 700,000 annually in recent years.

"E-commerce" refers to:

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

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.

During a venture's rapid growth stage,funds for plant expansion,marketing expenditures,working capital,and product or service improvements is obtained through?

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

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.

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.

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

You have the opportunity of making a $5,000 investment.The outcomes one year from now will be either $4,500 or $6,000 with an equal chance of either outcome occurring.What is the expected outcome?

Which of the following is not considered to be a mega-trend in this textbook?

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

Exam 1: Introduction to Finance for Entrepreneurs

Which of the following is considered to be an "agency" conflict?

"Fads" are:

Early-stage ventures include firms in their development,startup,orsurvival live cycle stages.

The goal of the entrepreneurial process is to:

Nearly half of business failures are due to economic factors such as inadequate sales,insufficient profits,and industry weakness.

Which one of the following possible conflicts of interest increases in divergence at venture gets close to bankruptcy?

The rapid growth stage directly follows the startup stage.

Assume that you can sell a new product at $5.00 per unit.Your variable costs are $3.00 per unit and you fixed costs are $20,000.What will be your profit before taxes if you sell 12,000 units next year?

"Fads" are large societal,demographic,or technological trends or changes that are slow in forming but once in place continue for many years.

The Office of Advocacy of the U.S.Small Business Administration documents that "employer firm births" have exceeded 700,000 annually in recent years.

"E-commerce" refers to:

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

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.

During a venture's rapid growth stage,funds for plant expansion,marketing expenditures,working capital,and product or service improvements is obtained through?

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

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.

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.

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

You have the opportunity of making a $5,000 investment.The outcomes one year from now will be either $4,500 or $6,000 with an equal chance of either outcome occurring.What is the expected outcome?

Which of the following is not considered to be a mega-trend in this textbook?

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