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Study Resources (Business Management)

  Multiple Choice Questions  28. Entrepreneurial Opportunities are defined as: A.situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost. B. new market entry through entrepreneur action. C. the entrepreneur's mental processes in deciding whether or not to act on a potential opportunity. D.a feasibility.
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    80. Most established R&D limited partnerships: A. allow a minimum amount of equity dilution.B. are successful.C. increase, to some extent, the risks involved in the venture.D. have weak financial statements due to lack of outside capital.   81.Which of the following is not true about the costs and benefits of R&D limited partnerships? A. Most are not successfulB. Risk is reducedC. Costs.
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True / False Questions  1.Debt financing requires the entrepreneur to repay the amount borrowed plus interest.   2.Long-term debt financing is normally used to provide working capital to finance inventory, accounts receivable, and operation of the business.   3.Equity financing requires collateral.   4.All ventures have some equity.   5.The type of funds most frequently used by businesses is.
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    72.______ is the volume of sales needed to cover total variable and fixed costs. A. Cash flowB. DepreciationC. RevenueD. Breakeven     73.The marginal contribution is defined as: A. selling price per unit minus variable cost per unitB. total fixed costs minus selling price per unitC. variable cost per unit minus the selling price per unitD. total fixed costs plus total variable costs       74.As.
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True / False Questions  1.When developing operating and capital budgets, the entrepreneur can seek advice from experts, but should retain the final say so.   2.An entrepreneur focuses on the operating costs before completion of the sales budget.   3.Capital budgets project expenditures on new equipment, vehicles, computers, or new facilities.   4.Capital budgeting and decision making.
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  Short Answer/Essay Questions  84. Define capital budgeting. 85.An entrepreneur is trying to conduct a break-even analysis. Each product will sell for a price of $19.95. The entrepreneur has estimated the following costs:A. Rent $1000 per monthB. Direct labor per unit will be $3 per unitC. Salaries will be $500 per weekD. Raw.
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  38.Individuals have stronger intentions to act when taking action is perceived to be _____ and desirable.A.elusiveB.feasibleC.flexibleD.risky 39.Which among the following aspects affects an entrepreneur's perception of feasibility?A.Locus of controlB.Learning styleC.Perceived desirabilityD.Self-efficacy     40.On the education background, entrepreneurs:A.are less educated than the general population.B.cite an educational need in the areas of finance, strategic planning,.
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  Multiple Choice Questions  53.Venture capital firms prefer to invest in: A. high-potential ventures.B. conventional small businesses.C. privately-held middle market firms.D. ventures during the early stages.  54.Early stage financing is typically: A. easier to obtain than expansion financing.B. called seed or start-up capital.C. where venture capitalists are highly involved.D. used as working capital to support initial growth.   55.Which type of risk-capital market is available.
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    11.Business angels find many of their deals through friends, investment bankers, business brokers and other business associates.   12.Venture capital firms are pools of equity managed by large corporations.   13.Endowment and pension funds can be part of venture capital equity pools.   14.The Small Business Investment Company Act of 1958 married the use of private.
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    21.A venture capitalist would rather invest in a first-rate product and a second-rate management team than the reverse.     22.To attract venture capital funding, an investment must have significant capital appreciation potential.   23.For the venture capitalist, the executive summary is an important part of the business plan.   24.The detailed review of a potential venture.
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True / False Questions  1.Early-stage financing is usually the least costly type of financing to obtain.   2.Venture capital firms generally prefer a minimum funding level of $100,000.   3.The public equity market is available only for high-potential ventures.   4.Business angels are members of a professionally managed group of wealthy individuals who efficiently distribute risk capital.   5.The.
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    70.Which of the following is not one of the five C's of lending? A. CautionB. CharacterC. ConditionsD. Capacity   71.The Small Business 7(a) Guaranty program: A. guarantees up to 50 percent of the amount loaned.B. helps qualified small businesses obtain financing when they cannot obtain it through regular lending channels.C. has a maximum loan amount of $10 million.D. loans can be used.
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  Short Answer/Essay Questions  47. Explain the McMullen-Shepherd Model.   48. Define superficial similarities and structural similarities. Which was noted as the more challenging for entreprenuers?     49. Describe the difference between the causal process and the effectuation process.     50. Identify and define the 4 types of questions/tasks related to increasing cognitive ability.   51. Describe the difference between.
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  Multiple Choice Questions  42. The Maxwell's company, PowerBar, was purchased by what company? A. Proctor and Gamble B. Nestle C. Heinz D. Pilsbury   43.The strategy for growth in which the entrepreneur encourages existing customers to buy more of the firm's current product is a: A. penetration strategy.B. product development strategy.C. market development strategy.D. diversification strategy.     44.The penetration growth strategy: A. focuses on developing new.
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    31.SBA guaranteed loans are guaranteed for 100 percent of the loan amount.   32.The SBA's Microloan program provides short-term loans of up to $100,000 to small businesses for working capital or purchase of inventory.   33.Research and development limited partnerships provide small businesses funds from investors looking for tax shelters.     34.In an R&D limited partnership.
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  Multiple Choice Questions  50.Typically, debt financing requires: A. an asset as collateral.B. a degree of ownership in the firm.C. reduction of short-term assets.D. reduction of working capital.     51.________ financing does not require any collateral. A. Commercial bank loanB. Line of creditC. EquityD. Character loan   52.______ financing entails obtaining funds for the company in exchange for ownership. A. BootstrapB. EquityC. DebtD. Commercial  53.Which of the following is not an example.
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  Short Answer/Essay Questions    84. Explain the potential issues that could occur in establishing an international joint venture.     85. What are the 4 major factors in joint venture success?     86. Discuss the main disadvantages of an acquisition.    .
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    11.External investors generally require the entrepreneur to commit a large percentage of his or her personal assets.   12.When borrowing from friends and family, the entrepreneur should avoid putting agreements in writing to avoid future disagreements.   13.If the amount of money provided by family members or friends is small and in the form.
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    62.________ is the process of improving an individual's productivity through more efficient use of time. A. Time managementB. DelegationC. The principle of effectivenessD. The principle of prioritized planning   63.Using a time sheet to record usage of time is part of the principle of: A. desire.B. effectiveness.C. prioritized planning.D. analysis.   64.The _______ requires that the entrepreneur recognize that he or she is a.
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  Short Answer/Essay Questions  98. What are the three types of risk capital markets?   99. Discuss the informal risk-capital market and key characteristics of business angels.   100. List three reasons why a Business Angel may reject a proposal.     101.Identify and describe, in order, each of the major stages of the venture capital process.102.Identify the main.
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    21.Installment loans are typically given for a period of 30-40 days.   22.Long-term loans from commercial banks are usually readily available to small startup firms.   23.The five C's of credit are character, capacity, collateral, capital and competence.   24.To improve the chances of being approved for a bank loan, the entrepreneur should prepare a "mini".
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    83.Using the __________ method of evaluating the firm, cash flow is adjusted for the time value of money. A. present value of future cash flowB. replacement valueC. book valueD. earnings approach     84.Which of the methods of valuation of a company provides the potential investor with the best estimate of the probable return on investment? A. Book valueB. Earnings approachC. Present.
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    52.___________ refers to a diversification strategy that involves taking a step forward (down) on the value-added chain toward the customers. A. Backward integrationB. Horizontal integrationC. Forward integrationD. Conglomerate integration   53.A computer company buys a hard-drive manufacturer. This is an example of: A. Backward integrationB. Horizontal integrationC. Forward integrationD. Conglomerate integration   54.A firm that manufactures washing machines starts to manufacture detergent illustrates _______.
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    41. Two major disadvantages of going public are the increased reporting requirements and potential loss of control.   42. Making long-term decisions can be difficult in publicly traded companies where sales and profit evaluations indicate the capability of management via stock values.   43.With the enactment of the Sarbanes-Oxley Act in 2002, the expense and administrative.
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    21.Large positive cash flows usually occur in the first months of a new venture.   22.In projecting cash flows the most difficult problem is in determining the exact amount of monthly receipts and disbursements.   23.When projecting cash flows for the pro forma cash flow statement, it is important to be conservative in the.
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    73.The due diligence phase of the venture-capital process includes: A. outlining the principle terms.B. a detailed review of the company's history.C. preparation of an investment memorandum.D. a preliminary study of the business plan.     74.The longest stage of the venture capital process, at 1-3 months, is: A. preliminary screening.B. final approval.C. agreement on principal terms.D. due diligence.     75. Venture capitalists are typically located.
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    11.In projecting the operating expenses for the second and third year, it is helpful to first look at those expenses that will likely change over time.       12.For the Internet start-up, capital budgeting and operating expenses will tend to be consumed by equipment purchasing or leasing, inventory, and advertising expenses.   13.When estimating expenses.
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    52.As the business grows: A. selling expenses should go down.B. salaries and wages will go up as output increases.C. the pro forma income statement becomes unimportant.D. advertising expenses should go down.     53.In projecting operating expenses for the second and third year costs like ______ are likely to remain stable unless new equipment or additional space is.
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    72.The computerized system developed by the grocery and pharmaceutical industry to link chain members is: A. Efficient Computer Response (ECR)B. Efficient Computer Distribution (ECD)C. Electronic Demand Distribution (EDD)D. Computerized Check Out Systems (CCOS)     73.The most often used method of transporting goods is: A. air transport.B. truck and rail transport.C. barge transport.D. tanker transport.   74.The entrepreneur has which of the following responsibilities regarding.
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    62.Which of the following would not be a current asset? A. Certificates of deposit that mature in six monthsB. Customer receivablesC. CashD. Supplier bills payable in thirty days       63.Fixed assets are those that: A. are intangible.B. include cash.C. will be used over a long period of time.D. are similar to loans and advances.       64.________ represent(s) money that is owed to creditors. A. AssetsB. Cash flowC. Owner.
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    41.Private offerings involve more time, expense, and paperwork than public offerings.   42.Regulation D regulates private placements.   43.Under Rule 504 of Regulation D, a company can sell up to $1,000,000 of securities to any number of investors, regardless of their sophistication, in any 12-month period.     44.When using private placement funding the entrepreneur must disclose.
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True / False Questions  1.Using a penetration strategy, the entrepreneur attempts to encourage existing customers to buy more of the firm's current products.   2.A product development strategy relies on taking market share from competitors.   3.Market development strategies involve selling the firm's existing products to a new group of customers, such as a new.
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    31.The inventory turnover ratio measures the efficiency of the venture in managing its inventory.     32.The debt ratio is calculated by dividing total liabilities by total inventory.   33.The return on investment ratio measures the ability of the firm to repay long-term debt using current assets.   34.The present value of future cash flow method of.
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True / False Questions  1.The most common type of joint venture is between two or more public sector companies.   2.International joint ventures are decreasing in popularity.   3.Cultural differences between international joint venture partners can create management difficulties.   4.To be successful the partners in a joint venture should have symmetry. 5.An acquisition is the purchase of.
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    31.Break-even is that volume of sales at which there are neither profits nor losses.   32.As long as the selling price is less than the variable cost per unit, some contribution will be made to cover fixed costs.   33.Sales in excess of the break-even point will result in a profit, as long as.
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   11.The two most common means of acquisition are the entrepreneur's direct purchase of the firm's entire stock or assets or the bootstrap purchase of these assets.     12.When an entrepreneur bootstraps the purchase of a company, none of the price of the acquisition is cash.     13. When an entrepreneur bootstraps the purchase of.
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    31.Growing ventures tie up more cash in their inventory than in any other part of the business.   32.Transport mode selection can be important in inventory management.   33.The grocery and pharmaceutical industries have developed a computerized system to link chain members together and manage demand, distribution, and marketing.   34.One advantage of leasing equipment is.
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  Short Answer/Essay Questions  79.Discuss the three types of market development strategies and give examples of each.    80. Identify and describe the three major types of diversification growth strategies. 81. What are the 4 main growth strategies discussed in the text? Briefly define each.         .
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    11.As a firm grows, higher volume increases production efficiency and increases its bargaining power with suppliers.       12.To prevent pressures on the financial resources created by growth, the venture should avoid resource slack.     13.Many entrepreneurs find that as they grow they need to change their management style.   14.If employees are spread too thin because.
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    63.In a private venture capital firm, the _______ manages the fund in exchange for a management fee and a percentage of profits. A. limited partnerB. general partnerC. entrepreneurD. referral source   64.Which of the following was not one of the top industries where venture capital was invested in 2011? A. SoftwareB. BiotechnologyC. Industrial/energyD. Telecommunications     65.The top area of venture capital investment in 2011.
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    21.In evaluating an LBO's asking price an entrepreneur can use qualitative measures such as evaluating the abilities of key personnel.   22.Quantitative methods of analyzing the fairness of an LBO's asking price include price-earnings ratios, present value of future earnings and book value.   23.Franchising involves payment of royalties in exchange for exclusive distribution.
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    60.When inventory is the asset base for a loan: A. a trust receipt is not generally used.B. factoring may be arranged.C. about 50 percent of it can be financed.D. all of the inventory can be financed.   61.When the bank advances a large percentage of the invoice price of goods and is paid on a pro-rata basis.
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  Multiple Choice Questions  42. Zappos, under a cash flow crunch, was bought out by _______: A. Google B. Microsoft C. Amazon D. Netflix   43.The sales budget: A. should be prepared before developing the pro forma income statement.B. must be prepared by the venture's accounting firm.C. must be based on actual sales figures for the last month.D. needs to be prepared only.
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   21.Effective time management can increase an entrepreneur's job satisfaction.       22.The principle of reanalysis requires the entrepreneur to focus on the most important issues, even when under pressure.    23.A recognition of the need to change personal attitudes and habits regarding the allocation of time is known as the principle of desire. 24.Developing standardized forms.
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