c.
4. A sound sound bus busin ines esss mode modell prov provid ides es a plan plan whi which ch inc inclu ludes des all all of the the foll followi owing ng exc except ept?? a. generates revenues b. makes profits c. retains all its earnings d. produces free cash flows e. all of the above are included
d.
5. A sound business model includes a plan to: a. generate revenues, make profits b. make profits, produce free cash flows c. produce free cash flows flows for the owners of the venture d. generate revenues, make profits, profits, and produce free cash flows flows
a.
6. hic hich h one one of the the foll follow owin ing g comp compone onent ntss is not not a sta standa ndard rd com compon ponen entt of a sound sound busi busine ness ss model? a. produce low!cost products b. generate revenues c. make profits d. produce free cash flows
b.
". #ree cash flows, which can be paid back to investors occurs when cash generated from operations exceeds all of the following except? a. borrowing costs b. non!cash depreciation c. taxes d. investment in assets
d.
$. A ven venture%s value is determined b& a. the si'e si'e and timing of its future free free cash flows b. time value of mone& c. its net income d. a and b e. a and c
a.
(. )evelo )evelopin ping g new new and delive deliveri ring ng high!* high!*ual ualit it& & prod product uctss or servic services es that that comman command d high higher er prices prices and margins best describes strong a. marketing practices b. financial practices c. operating practices d. management practices
e.
+. -ffec -ffectiv tivee entrep entrepren reneur eurial ial managem management ent teams teams sho should uld includ includee all of the follow following ing except except?? a. provide expertise expertise in the areas of marketing, marketing, finance, and operations b. have successful experience in the venture%s venture%s industr& and markets c. work collaborativel& with each other d. share the entrepreneurial spirit e. in!house accounting, auditing, and tax professionals
b.
++. A viable viable venture opportunit& is characteri'ed b& all of the following except? +
#ull file at http:testbankcart.eu/est!0ank!for!-ntrepreneurial!#inance!5th!-dition!b&!1each a. creating or meeting a customer need b. has perceived attraction to prospective investors c. provides an initial competitive advantage d. is timel& in terms of time!to!market e. offers the expectation of added value to investors c.
+2. A 3/ anal&sis does not focus on which of the following components or areas? a. strengths b. weaknesses c. new ideas d. opportunities e. threats
e.
+. A 3/ anal&sis focuses on which of the following components or areas? a. strengths b. weaknesses c. opportunities d. threats e. all of the above f. a, b, and d
e.
+4. hen conducting a 3/ anal&sis, unfilled customer needs7 are examined in terms of: a. strengths b. weaknesses c. opportunities d. threats e. a or b f. c or d
e.
+5. 3/ anal&sis should at the ver& least consider which of the following areas: a. experienceexpertise b. reputation value c. first mover d. a and b e. a, b, and c
e.
+6. hich a. b. c. d. e.
a.
+". /he evaluation of entr& barriers7 occurs under which one of the following parts of the 83 indicator? a. industr&market considerations b. pricingprofitabilit& considerations c. financialharvest considerations d. management team considerations
one of the following is not a part of the 83 indicator? industr&market considerations pricingprofitabilit& considerations financialharvest considerations management team considerations locationprofitabilit& considerations
a.
#ull file at http:testbankcart.eu/est!0ank!for!-ntrepreneurial!#inance!5th!-dition!b&!1each +$. A 83 indicator stands for: a. venture opportunit& screening indicator b. viable opportunit& statement indicator c. venture onl& success indicator d. viable assessment screening indicator
e.
+(. /he factor categories in a 83 indicator are: a. industr&market considerations b. pricingprofitabilit& considerations c. financialharvest considerations d. management team considerations e. all of the above f. a, b, and d
c.
2. A score7 in the range of 2.4!. using the 83 9ndicator / would be considered a: a. a low score b. an average score c. a high score d. a ver&, ver& high score
c.
2+. An average score on using the 83 9ndicator / would fall in the range: a. .!.(( b. +.!+.66 c. +.6"!2. d. 2.4!.
a.
22. At the end of a *ualitative!based venture opportunit& screening exercise, the interviewer prepares a sub;ective assessment and indicates one of the following except for: a. natural commercial potential b. high commercial potential c. average commercial potential d. low commercial potential
e.
2. )irect costs of producing a product or providing a service is called a. gross profit b. gross profit margin c. net profit d. net profit margin e. cost of goods sold
a.
24.
c.
25. )ollar profit left after all expenses, including financing costs and taxes have been deducted from the firm%s revenues is called a. gross profit b. gross profit margin
#ull file at http:testbankcart.eu/est!0ank!for!-ntrepreneurial!#inance!5th!-dition!b&!1each c. net profit d. net profit margin e. cost of goods sold d.
26.
a.
2". All else held constant, a higher asset turnover: a. increases <A b. decreases <A c. has no effect on <A d. ma& raise or lower <A, depending on how it affects revenues.
c.
2$. /he return on assets =<A> model measures: a. revenues divided b& net profit times the asset turnover b. net profit margin times the e*uit& multiplier c. net profit margin times asset turnover d. net profit divided b& total assets multiplied b& the asset turnover
a.
2(. #ree cash flow to e*uit& is the cash available to the entrepreneur and venture investors after all of the following except? a. net cash flows b. operating cash outflows c. financing and tax cash flows d. investment in assets needed to sustain the venture%s group e. net increase in debt capital
e.
. /he free cash flows to e*uit& of an entrepreneurial firm includes cash flows to: a. venture investors b. creditors c. the entrepreneur d. a and b e. a and c f a, b, and c
c.
+. )etermine the cost of goods sold for a venture with the following financial information: revenues @5, net profit margin 2B gross profit margin "B a. @4, b. @5, c. @+5, d. @+,
c.
2. )etermine gross profit of a venture with the following financial information: cost of goods sold @, net profit @+", asset turnover +.6 return on assets 2B
d.
#ull file at http:testbankcart.eu/est!0ank!for!-ntrepreneurial!#inance!5th!-dition!b&!1each a. @$5, b. @"2, c. @55, d. @$, . )etermine the return on assets =<A> for a venture with the following financial information: revenues @5, net profit @", and asset turnover 2. times. a. +B b. +4B c. 2B d. 2$B e. 4B
b.
4. )etermine the dollar amount of total assets for a venture with the following financial information: revenues @5, net profit @", and asset turnover 2. times. a. @+, b. @25, c. @"5, d. @5, e. @65,
c.
5. )etermine the dollar amount of net profit for a venture with the following financial information: revenues @5, return on assets 2B and asset turnover 2. times. a. @+, b. @25, c. @5, d. @6, e. @"5,
a.
6. )etermine the dollar amount of revenues for a venture with the following financial information: net profit @6, assets turnover +.5 times and return on assets B. a. @, b. @5, c. @$, d. @+,, e. @+,2,
b.
". )etermine the asset intensit& of a venture with the following financial information: net profit @22, revenues @+2, return on assets B. a. .5 b. .56 c. +.$ d. 2
b.
$. 9n the venture life c&cle, moving from the development stage to the startup stage fre*uentl& begins with the preparation of a business plan. /he business plan is a written document that describes the proposed venture in all of the following terms except: a. the proposed product or service opportunit& b. the accounting data for the last five &ears c. current resources available to the venture d. financial pro;ections
d.
#ull file at http:testbankcart.eu/est!0ank!for!-ntrepreneurial!#inance!5th!-dition!b&!1each (. A t&pical business plan includes all of the following sections except: a. executive summar& b. business description c. marketing plan and strateg& d. disclosure of pending litigation e. operations and support
c.
4. hen composing the financial plans and pro;ections section of a business plan, all of the following should be included except: a. income statements and balance sheets b. statement of cash flows c. past and present dividend per share information d. breakeven anal&sis e. funding needs and sources
e.
4+. A t&pical business plan includes all of the following except: a. management team b. financial plans and pro;ections c. risk and opportunities d. timeline and milestones e. initial public offering information
a.
42. /he first two re*uirements of a sound business model are: 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
b.
4. /he process involving minimi'ing the need for financial capital and finding uni*ue sources for financing a new venture is referred to as: a. me''anine financing b. financial bootstrapping c. seed financing d. startup financing
b.
44. A written document that describes the proposed venture in terms of the product or service opportunit&, current resources, and financial pro;ections is called a: a. financial plan b. business plan c. entrepreneurial plan d. survival plan
d.
45. 9n the Cauffman Denter stud& of best practices of high!growth, high!performance firms, which of the following practices was not included? a. marketing practices b. financial practices c. management practices d. productionoperations practices
d.
#ull file at http:testbankcart.eu/est!0ank!for!-ntrepreneurial!#inance!5th!-dition!b&!1each 46. hen moving from entrepreneurial opportunities to new businesses, products, or services, which one of the following is not considered a component? a. ideas b. feasibilit& c. business plan d. harvest of venture
d.
4". A firm%s option to abandon a venture is an example of a: a. bootstrapping option b. financial option c. survival option d. real option
a.
4$. A venture%s value to its owners is determined b& the: a. si'e and timing of its future free cash flows =to e*uit&> b. level of its past revenues c. prior losses and expenses d. all of the above
e.
4(. A well!designed entrepreneurial venture t&picall& includes: a. generating ideas b. anal&'ing the feasibilit& of ideas c. producing business modelsplans d. onl& a and c above e. a, b, and c above
c.
5. 3ome venture investors like to draw analogies between baseball terms and venture performance. /he baseball term used to reflect a total loss of an investment is: a. home run b. single c. strikeout d. double
