ENTR 321 FINAL EXAM QUESTIONS AND VERIFIED
ANSWERS
Which the following factors would NOT influence of a product or service?
A. Degree of competition
B. Consumer Psychology
C. Changes in demand
D. Production and distribution cost
E. All of the above - Answers - E
A variable cost?
A. Changes in the opposite direction and in direction proportion to changes in opening
activity
B. Does not very with changes in operating activity
C.Does not include labor costs
D. Changes in the same direction and in direct proportion to changes in operation
activity
E. Changes in the same direction and in inverse proportion to changes in operating
activity - Answers - D
When accounts receivable are sold by a company as a means of raising capital is
called?
A. Trade credit
B. Leasing
C. Financing
D. ESOP
E. Factoring - Answers - E
Ratio analysis includes which of the following?
A. Analysis of how ratios change over time
B. Comparison of ratios to industry norm
C. Comparison of ratios to those of any competitors
D. B and c
E. All of the above - Answers - E
A "SWOT" analysis refer to?
A. Strength, Weaknesses, Opportunities, Thesis
B. Silly Obstructing Tactics
C. Street, Walkway, Overpass, Trestle
D. Sound warning of takeovers
E. Small, Walk, Ordinary, Fact - Answers - A
, Which of the following was the first to note the role of entrepreneurs in organizing
"factors of production" and shifting them to be more profitable?
A. Richard Cantillion
B. Stevenson & Carlos
C. Jean Baptist Say
D. Hello Kitty
E. Vilfredo Pareto - Answers - C
The Oakland Scavenger case is significant to owners of family business because it
shows that?
A. Conceivably, the owner can be sued for not declaring a family member his successor
B. Conceivably, the owner can be sued for not giving equal treatment to a son as to a
daughter
C. Conceivably, the owner can be sued by an employee of a different ethnic origin
based upon not being accorded the same treatment as a son
D. The owner can be fined for not declaring his or her first son the heir of the business -
Answers - C
Financial Pro-forma projections are important to entrepreneurs because?
A. They pull together information about sales, operations, and start up costs
B. They quantify all the assumptions concerning business operations C. They answer all
questions about the business's target market and the entrepreneur
D. A and b are both correct - Answers - D
Which of the following would be treated as a fixed cost in preparing financial
projections?
A. Rent
B. Inventory
C. Shipping and distribution expense
D. All of the above are fixed costs
E. None of the above are fixed costs - Answers - A
Which of the following would be most commonly used for short-term financing
A. Trade credit
B. Angel investor
C. Finance companies
D.Leasing companies
E. All of the listed choices are commonly used for short-term financing - Answers - A
Which of the following is NOT an example of pressures or interests from within a firm
that affect succession issues?
A. Rivalry among various branches of the family
B. Having a family member wanting to start his/her own business C.Employee wanting a
percentage of the business in the owners will D. Pressure on the owner/manager to
designate and heir - Answers - B
ANSWERS
Which the following factors would NOT influence of a product or service?
A. Degree of competition
B. Consumer Psychology
C. Changes in demand
D. Production and distribution cost
E. All of the above - Answers - E
A variable cost?
A. Changes in the opposite direction and in direction proportion to changes in opening
activity
B. Does not very with changes in operating activity
C.Does not include labor costs
D. Changes in the same direction and in direct proportion to changes in operation
activity
E. Changes in the same direction and in inverse proportion to changes in operating
activity - Answers - D
When accounts receivable are sold by a company as a means of raising capital is
called?
A. Trade credit
B. Leasing
C. Financing
D. ESOP
E. Factoring - Answers - E
Ratio analysis includes which of the following?
A. Analysis of how ratios change over time
B. Comparison of ratios to industry norm
C. Comparison of ratios to those of any competitors
D. B and c
E. All of the above - Answers - E
A "SWOT" analysis refer to?
A. Strength, Weaknesses, Opportunities, Thesis
B. Silly Obstructing Tactics
C. Street, Walkway, Overpass, Trestle
D. Sound warning of takeovers
E. Small, Walk, Ordinary, Fact - Answers - A
, Which of the following was the first to note the role of entrepreneurs in organizing
"factors of production" and shifting them to be more profitable?
A. Richard Cantillion
B. Stevenson & Carlos
C. Jean Baptist Say
D. Hello Kitty
E. Vilfredo Pareto - Answers - C
The Oakland Scavenger case is significant to owners of family business because it
shows that?
A. Conceivably, the owner can be sued for not declaring a family member his successor
B. Conceivably, the owner can be sued for not giving equal treatment to a son as to a
daughter
C. Conceivably, the owner can be sued by an employee of a different ethnic origin
based upon not being accorded the same treatment as a son
D. The owner can be fined for not declaring his or her first son the heir of the business -
Answers - C
Financial Pro-forma projections are important to entrepreneurs because?
A. They pull together information about sales, operations, and start up costs
B. They quantify all the assumptions concerning business operations C. They answer all
questions about the business's target market and the entrepreneur
D. A and b are both correct - Answers - D
Which of the following would be treated as a fixed cost in preparing financial
projections?
A. Rent
B. Inventory
C. Shipping and distribution expense
D. All of the above are fixed costs
E. None of the above are fixed costs - Answers - A
Which of the following would be most commonly used for short-term financing
A. Trade credit
B. Angel investor
C. Finance companies
D.Leasing companies
E. All of the listed choices are commonly used for short-term financing - Answers - A
Which of the following is NOT an example of pressures or interests from within a firm
that affect succession issues?
A. Rivalry among various branches of the family
B. Having a family member wanting to start his/her own business C.Employee wanting a
percentage of the business in the owners will D. Pressure on the owner/manager to
designate and heir - Answers - B
