ENTREPRENEURIAL FINANCE ACTUAL TEST
PAPER QUESTIONS AND SOLUTIONS GRADED
A+
◉ lifestyle firms are growth-driven in terms of revenues, profits,
cash flows and also performance oriented as reflected in rapid value
creation over time.
Answer: false
◉ a typical business plan includes all of the following sections
except
a. executive summary
b. business description
c. marketing plan and strategy
d. disclosure of pending litigation
e. operations and support.
Answer: disclosure of pending litigation
◉ Which of the following is not a category on the statement of cash
flows
a. cash flow from operating activities
b. cash flow from equity activities
,c. cash flow from investing activities
d. cash flow from financing activities.
Answer: cash flows from equity opportunites
◉ which one of the following is not part of the VOS indicator
a. industry/market considerations
b. pricing/profitability considerations
c. financial/harvest considerations
d. management team considerations
e.location/profitability considerations.
Answer: location/profitability considerations
◉ . Effective entrepreneurial management teams should include all
of the following except?
a. provide expertise in the areas of marketing, finance, and
operations
b. have successful experience in the venture's industry and markets
c. work collaboratively with each other
d. share the entrepreneurial spirit
e. in-house accounting, auditing, and tax professionals.
Answer: in house accounting, auditing, and tax professionals
,◉ Developing new and delivering high-quality products or services
that command higher prices and margins best describes strong.
Answer: marketing practices
◉ Determine the cash conversion cycle based on the following
information: average inventory processing period = 112.9 days;
average receivable collection period = 57.1 days; and average
payables payment period = 76.8 days.
a. 93.2 days
b. 132.6 days
c. 170.0 days
d. 246.8 days
e. 365.0 days.
Answer: 93.2 days
(112.9+57.1)-76.8 = 93.2
◉ An s corporation provides unlimited liability for its shareholders.
Answer: false
◉ Which one of the following components is not a standard
component of a sound business model?
a. produce low-cost products
, b. generate revenues
c. make profits
d. produce free cash flows.
Answer: produce low-cost products
◉ (Average current assets - average inventory)/ avg current
liabilities =.
Answer: quick ratio
◉ Which form of business organization is characterized by having
the shortest start-up time and lowest legal costs?
a. proprietorship
b. limited partnership
c. corporation
d. subchapter S corporation
e. limited liability corporation.
Answer: proprietorship
◉ Which form of business organization typically offers the easiest
transfer of ownership?
a. proprietorship
b. limited partnership
PAPER QUESTIONS AND SOLUTIONS GRADED
A+
◉ lifestyle firms are growth-driven in terms of revenues, profits,
cash flows and also performance oriented as reflected in rapid value
creation over time.
Answer: false
◉ a typical business plan includes all of the following sections
except
a. executive summary
b. business description
c. marketing plan and strategy
d. disclosure of pending litigation
e. operations and support.
Answer: disclosure of pending litigation
◉ Which of the following is not a category on the statement of cash
flows
a. cash flow from operating activities
b. cash flow from equity activities
,c. cash flow from investing activities
d. cash flow from financing activities.
Answer: cash flows from equity opportunites
◉ which one of the following is not part of the VOS indicator
a. industry/market considerations
b. pricing/profitability considerations
c. financial/harvest considerations
d. management team considerations
e.location/profitability considerations.
Answer: location/profitability considerations
◉ . Effective entrepreneurial management teams should include all
of the following except?
a. provide expertise in the areas of marketing, finance, and
operations
b. have successful experience in the venture's industry and markets
c. work collaboratively with each other
d. share the entrepreneurial spirit
e. in-house accounting, auditing, and tax professionals.
Answer: in house accounting, auditing, and tax professionals
,◉ Developing new and delivering high-quality products or services
that command higher prices and margins best describes strong.
Answer: marketing practices
◉ Determine the cash conversion cycle based on the following
information: average inventory processing period = 112.9 days;
average receivable collection period = 57.1 days; and average
payables payment period = 76.8 days.
a. 93.2 days
b. 132.6 days
c. 170.0 days
d. 246.8 days
e. 365.0 days.
Answer: 93.2 days
(112.9+57.1)-76.8 = 93.2
◉ An s corporation provides unlimited liability for its shareholders.
Answer: false
◉ Which one of the following components is not a standard
component of a sound business model?
a. produce low-cost products
, b. generate revenues
c. make profits
d. produce free cash flows.
Answer: produce low-cost products
◉ (Average current assets - average inventory)/ avg current
liabilities =.
Answer: quick ratio
◉ Which form of business organization is characterized by having
the shortest start-up time and lowest legal costs?
a. proprietorship
b. limited partnership
c. corporation
d. subchapter S corporation
e. limited liability corporation.
Answer: proprietorship
◉ Which form of business organization typically offers the easiest
transfer of ownership?
a. proprietorship
b. limited partnership
