Final Exam Review - ENT 3004 - FA 16

Question 1

If a business allows its customers to buy their product on credit,then that business will have:

Accepted Answer

accounts receivable

Question 2

The person in a venture capital firm that gives money but does not select the funds.

Accepted Answer

limited partner

Question 3

Which of the following assets does not depreciate in value over time?

Accepted Answer

inventory

Question 4

The four primary financial objectives of any non-profit organization are:

Accepted Answer

efficiency, liquidity, profitability, stability

Question 5

A _____ is a guess about the future financials of a business.

Accepted Answer

pro forma

Question 6

If an individual (or businesses) assets = 200mil, debt = 199mil, then...

Accepted Answer

they are a millionaire

Question 7

In startup finance terms, running out of cash before giving the biz a chance to grow is called:

Accepted Answer

running out of runway

Question 8

Entrepreneurs can raise money from friends, family, investors, banks, & by crowdfunding.

Accepted Answer

True

Question 9

Gross Profit is calculated by taking Sales minus:

Accepted Answer

COGS

Question 10

The basic idea of a startup company is to become ____ before running out of cash.

Accepted Answer

profitable

Question 11

A group of individuals who provide a company with non-binding advice on strategic matters.

Accepted Answer

board of advisors

Question 12

The entity responsible for granting patents in the US is the:

Accepted Answer

U.S. Patent and Trademark Office

Question 13

Some expenses a business has are fixed while others are:

Accepted Answer

variable

Question 14

A markup percentage and gross profit margin are the same percentage.

Accepted Answer

False

Question 15

Homogenous teams are very alike in terms of background, demographics, or shared experiences.

Accepted Answer

True

Question 16

Which of the following spells out the way the business will operate in a short, concise manner.

Accepted Answer

business model

Question 17

Al Gore is this type of director for Apple, Inc.

Accepted Answer

outside

Question 18

What tool do founders use to critically assess the startup teams strengths and weaknesses.

Accepted Answer

skills profile

Question 19

A _____ shows what is owed and owned at a given period in time.

Accepted Answer

balance sheet

Question 20

What issues are central to deciding on a legal structure? ... study this

Accepted Answer

liability, tax, ownership, control

Question 21

Which of the following is an example of intellectual property?

Accepted Answer

Nike's swoosh

Question 22

Establishing a strong ethical foundation is critical for a startup company.

Accepted Answer

True

Question 23

A 100% markup is always a 50% gross profit margin.

Accepted Answer

True

Question 24

Which of these was not listed as an area of feasibility analysis.

Accepted Answer

functional

Question 25

Which is not one of the four forms of intellectual property?

Accepted Answer

innovations

Question 26

The CASH spent every month during the startup phase of a business is called the:

Accepted Answer

burn rate

Question 27

If a company's electric bill was $100 last month and $120 this month, is this a fixed expense?

Accepted Answer

Yes

Question 28

A _____ shows what happened with cash over a given period of time.

Accepted Answer

statement of cash flows

Question 29

Raising money from a bank requires the entrepreneur to:

Accepted Answer

pay back the loan with interest

Question 30

If an individual (or businesses) assets = 1mil, debt = 1mil, then...

Accepted Answer

they are not a millionaire

Question 31

A _____ shows a detailed list of expenses over a given period of time.

Accepted Answer

income statement

Question 32

A _____ shows what happened over a given period of time with the business - usually a year.

Accepted Answer

income statement

Question 33

It is important to know the difference between debt and equity financing.

Accepted Answer

True

Final Exam Review - ENT 3004 - FA 16

Questions 33

Final Exam Review - ENT 3004 - FA 16

Questions 33