ELE 3010 FINAL EXAM QUESTIONS AND
CORRECT ANSWERS!!
Which of the following is(are) not a key element in the pricing strategy?
Distribution
An assessment of external uncontrollable variables that may impact the business plan is
known as:
an environmental analysis
(T/F) Debt financing requires the entrepreneur to repay the amount borrowed plus
interest.
True
Fixed operating expenses include all of the following except:
Raw Materials
The standard term of a limited liability company is:
30 years
________ financing does not require any collateral.
Equity
The formula for break-even analysis is:
total fixed costs divided by selling price minus variable cost per unit.
Current liabilities are:
those liabilities due for payment within a year.
Pro forma cash flow is
projected cash inflow and outflow.
(T/F) Break-even is that volume of sales at which there are neither profits nor losses.
, True
In a ________ capital losses can be carried forward indefinitely.
sole proprietorship
Outside financing:
increases the venture's impulse to spend.
(T/F) The five C's of credit are character, capacity, collateral, capital and competence.
False
Which type of ownership is the least expensive to start?
Sole proprietorship
Compensation for board members can take the form of all of the following except:
perks, such as vacations.
(T/F) When borrowing from friends and family, the entrepreneur should avoid putting
agreements in writing to avoid future disagreements.
False
Liability is one of the most critical reasons for establishing a:
corporation.
When it comes to decision making, in a limited partnership:
limited partners have no control over business decisions.
The _________ imposes oversight responsibilities on members of the board of directors.
Sarbanes-Oxley
The sales budget:
should be prepared before developing the pro forma income statement.
In a limited partnership, the limited partners:
CORRECT ANSWERS!!
Which of the following is(are) not a key element in the pricing strategy?
Distribution
An assessment of external uncontrollable variables that may impact the business plan is
known as:
an environmental analysis
(T/F) Debt financing requires the entrepreneur to repay the amount borrowed plus
interest.
True
Fixed operating expenses include all of the following except:
Raw Materials
The standard term of a limited liability company is:
30 years
________ financing does not require any collateral.
Equity
The formula for break-even analysis is:
total fixed costs divided by selling price minus variable cost per unit.
Current liabilities are:
those liabilities due for payment within a year.
Pro forma cash flow is
projected cash inflow and outflow.
(T/F) Break-even is that volume of sales at which there are neither profits nor losses.
, True
In a ________ capital losses can be carried forward indefinitely.
sole proprietorship
Outside financing:
increases the venture's impulse to spend.
(T/F) The five C's of credit are character, capacity, collateral, capital and competence.
False
Which type of ownership is the least expensive to start?
Sole proprietorship
Compensation for board members can take the form of all of the following except:
perks, such as vacations.
(T/F) When borrowing from friends and family, the entrepreneur should avoid putting
agreements in writing to avoid future disagreements.
False
Liability is one of the most critical reasons for establishing a:
corporation.
When it comes to decision making, in a limited partnership:
limited partners have no control over business decisions.
The _________ imposes oversight responsibilities on members of the board of directors.
Sarbanes-Oxley
The sales budget:
should be prepared before developing the pro forma income statement.
In a limited partnership, the limited partners:
