Deck 9: Building Your Pro-Forma Financial Statements

Question 1

Investors love it when they hear entrepreneur's say that "they have no competition".

Answer 1

False

Question 2

It is important to overestimate when creating financial models, especially during the initial phases of their startup.

Answer 2

False

Question 3

A company can calculate its CLV by taking the total number revenue divided by the total number of customers.

Answer 3

False

Question 4

Cost of client acquisition refers to all of the incurred costs associated in a single customer purchasing a company's product and/or service.

Question 5

Many technology and online driven new companies are very scalable because of their lower cost of goods sold.

Question 6

Financial statements are based on reasonable assumptions and represent predictions of a company's performance; whereas financial models are hard numbers based on the company's past performance.

Question 7

What is type of competition are present in industry?

A) Pure Competition
B) Imperfect Competition
C) Oligopoly
D) Monopoly
E) All of the above

Question 8

What questions are financial models and statements NOT able to answer?

A) Is there enough business acumen in the management team to move forward?
B) Is the business sustainable?
C) Is the business culture suitable for growth?
D) Is the business scalable?
E) What is the variability of the business?

Question 9

Which of the following is NOT a type of revenue model?

A) Recurring revenue
B) Technology revenue
C) Transactional revenue
D) Project revenue
E) Services revenue