ELE 3010 EXAM REVISION QUESTIONS AND
CORRECT ANSWERS!!
The ___ budget is used to evaluate expenditures that will impact the business for more than
1 year.
capital
Liability is 1 of the most critical reasons for establishing a:
corporation
Fixed expenses:
are incurred regardless of sales volume
The management team of a new venture
must operate the business full time
A board of advisors has less decision making authority than a board of directors does: T/F
True
In which phase of the SBIR grant process are funds used to create a prototype of a product
or service?
Phase II
The sales budget:
should be prepared before developing the pro forma income statement
Which of the following is not one of the main functions of the management team according
to text?
Execute the business plan
In which form of organization does the owner have greatest control?
Sole proprietorship
, An entrepreneur focuses on the operating costs before completion of the sales budget
False
______ is the amount owners have invested and/or retained from the venture operations:
Owners equity
Private offerings:
Which of the following would be considered a variable expense?
Raw materials
The basic balance sheet relationship is:
assets = liabilities + owner's equity
Compensation for board members can take the form of all of the following except:
perks, such as vacations
The _____ imposes oversights responsibilities on members of the board of directors
Sarbanes-Oxley
The difference between a board of directors and a board of advisors is that:
the board of advisors meets less frequently
Typically, debt financing requires
an asset as collateral
The marginal contribution is defined as
selling price per unit minus variable costs per unit
____ financing does not require any collateral
Equity
The SBA's Microloan program provides short-term loans up to $100,000 to small
businesses for working capital. T/F
CORRECT ANSWERS!!
The ___ budget is used to evaluate expenditures that will impact the business for more than
1 year.
capital
Liability is 1 of the most critical reasons for establishing a:
corporation
Fixed expenses:
are incurred regardless of sales volume
The management team of a new venture
must operate the business full time
A board of advisors has less decision making authority than a board of directors does: T/F
True
In which phase of the SBIR grant process are funds used to create a prototype of a product
or service?
Phase II
The sales budget:
should be prepared before developing the pro forma income statement
Which of the following is not one of the main functions of the management team according
to text?
Execute the business plan
In which form of organization does the owner have greatest control?
Sole proprietorship
, An entrepreneur focuses on the operating costs before completion of the sales budget
False
______ is the amount owners have invested and/or retained from the venture operations:
Owners equity
Private offerings:
Which of the following would be considered a variable expense?
Raw materials
The basic balance sheet relationship is:
assets = liabilities + owner's equity
Compensation for board members can take the form of all of the following except:
perks, such as vacations
The _____ imposes oversights responsibilities on members of the board of directors
Sarbanes-Oxley
The difference between a board of directors and a board of advisors is that:
the board of advisors meets less frequently
Typically, debt financing requires
an asset as collateral
The marginal contribution is defined as
selling price per unit minus variable costs per unit
____ financing does not require any collateral
Equity
The SBA's Microloan program provides short-term loans up to $100,000 to small
businesses for working capital. T/F
