Question 1

Evaluates the firm's overall performance and show how effectively it is putting its resources to work.This is called:

Accepted Answer

A) operating ratios. 
B) debt to equity ratio. 
C) accounts receivable turnover ratio. 
D) All of the above 
A) operating ratios. 
B) debt to equity ratio. 
C) accounts receivable turnover ratio. 
D) All of the above

Question 2

The most meaningful basis for comparing operating ratios is:

Accepted Answer

A) other companies of similar size in the same industry. 
B) companies within the neighborhood. 
C) major corporations in the same industry. 
D) all publicly traded companies. 
A) other companies of similar size in the same industry. 
B) companies within the neighborhood. 
C) major corporations in the same industry. 
D) all publicly traded companies.

Question 3

The first section of a balance sheet lists:

Accepted Answer

A) current and intangible assets. 
B) current liabilities. 
C) claims creditors have against the firm's assets payable within one year. 
D) the owner's equity in terms of initial capital invested and retained earnings. 
A) current and intangible assets. 
B) current liabilities. 
C) claims creditors have against the firm's assets payable within one year. 
D) the owner's equity in terms of initial capital invested and retained earnings.

Question 4

When a company is forced into liquidation,owners are most likely to incur a loss when selling:

Accepted Answer

A) accounts receivable. 
B) inventory. 
C) marketable securities. 
D) real estate. 
A) accounts receivable. 
B) inventory. 
C) marketable securities. 
D) real estate.

Question 5

Total profits minus total expenses gives the company's net income.

Accepted Answer

A) True 
 B)False

Question 6

The balance sheet is usually prepared on the ________ day of the month.

Accepted Answer

A) first 
B) last 
C) 15th 
D) None of the above 
A) first 
B) last 
C) 15th 
D) None of the above

Question 7

Net profit on sales ratio = Net sales / Net income.

Accepted Answer

A) True 
 B)False

Question 8

A ratio greater than ________ days would indicate poor collection procedures.

Accepted Answer

A) 29 
B) 40 
C) 60 
D) 90 
A) 29 
B) 40 
C) 60 
D) 90

Question 9

To get the best results,an entrepreneur should track as many ratios as possible.

Accepted Answer

A) True 
 B)False

Question 10

Explain the three basic financial reports that a business uses in building a financial statement: the balance sheet,the income statement,and the statement of cash flows.What information is contained in each,what is their value to the small business owner,and how are they used to build financial statements?

Accepted Answer

Entrepreneurs rely on three basic financ

Question 11

What do leverage ratios measure? Name and explain three of them.

Accepted Answer

Leverage ratios measure the financing su

Question 12

What are liquidity ratios and how are they used by the small business owner? Name and briefly explain the current and quick ratios.

Accepted Answer

Liquidity ratios tell whether a small bu

Question 13

To determine sales revenue,the owner records sales revenue for the year and subtracts liabilities.

Accepted Answer

A) True 
 B)False

Evaluates the firm's overall performance and show how effectively it is putting its resources to work.This is called:

The most meaningful basis for comparing operating ratios is:

The first section of a balance sheet lists:

When a company is forced into liquidation,owners are most likely to incur a loss when selling:

Total profits minus total expenses gives the company's net income.

The balance sheet is usually prepared on the ________ day of the month.

Net profit on sales ratio = Net sales / Net income.

A ratio greater than ________ days would indicate poor collection procedures.

To get the best results,an entrepreneur should track as many ratios as possible.

What do leverage ratios measure? Name and explain three of them.

What are liquidity ratios and how are they used by the small business owner? Name and briefly explain the current and quick ratios.

To determine sales revenue,the owner records sales revenue for the year and subtracts liabilities.

Entrepreneurs: the Driving Force Behind Small Business

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Managing Cash Flow

Building a Guerrilla Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

Ethics and Social Responsibility: Doing the Right Thing

The Legal Environment: Business Law and Government Regulation

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Exam 7: Creating a Solid Financial Plan

Evaluates the firm's overall performance and show how effectively it is putting its resources to work.This is called:

The most meaningful basis for comparing operating ratios is:

The first section of a balance sheet lists:

When a company is forced into liquidation,owners are most likely to incur a loss when selling:

Total profits minus total expenses gives the company's net income.

The balance sheet is usually prepared on the ________ day of the month.

Net profit on sales ratio = Net sales / Net income.

A ratio greater than ________ days would indicate poor collection procedures.

To get the best results,an entrepreneur should track as many ratios as possible.

What do leverage ratios measure? Name and explain three of them.

What are liquidity ratios and how are they used by the small business owner? Name and briefly explain the current and quick ratios.

To determine sales revenue,the owner records sales revenue for the year and subtracts liabilities.

Entrepreneurs: the Driving Force Behind Small Business

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Managing Cash Flow

Building a Guerrilla Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

Ethics and Social Responsibility: Doing the Right Thing

The Legal Environment: Business Law and Government Regulation

Filters