ENT 101 — WEEK 7 QUIZ
Introduction to Entrepreneurship
Toronto Metropolitan University | 2026 Update
Total Time: 30 Minutes | Total Points: 25
SECTION A: Multiple Choice — 15 Questions (1 point each)
1. Which financial statement shows a startup's revenues, expenses, and profit or loss over a
specific period of time?
• A) Balance Sheet
• B) Cash Flow Statement
• C) Income Statement (P&L)
• D) Statement of Retained Earnings
2. A Toronto-based food delivery startup, similar to Ritual, spends $12,000 per month on rent
and $8,000 on salaries (fixed costs). Each delivery contributes $4 in contribution margin. What is
the monthly break-even point in deliveries?
• A) 3,000 deliveries
• B) 4,000 deliveries
• C) 5,000 deliveries
• D) 6,000 deliveries
3. Which of the following is classified as a direct cost in Cost of Goods Sold (COGS)?
• A) Marketing campaign for a new product launch
• B) Raw materials used to manufacture the product
• C) Office rent for the headquarters
• D) Annual accounting software subscription
4. FreshBooks, the Toronto-based accounting software company, reported $10 million in
revenue last year with COGS of $3 million. What was their gross margin percentage?
• A) 30%
, • B) 50%
• C) 70%
• D) 130%
5. A TMU student startup at the DMZ incubator has a burn rate of $25,000 per month and
$150,000 in cash reserves. How many months of runway does this startup have?
• A) 4 months
• B) 5 months
• C) 6 months
• D) 8 months
6. Which funding source typically involves giving up ownership (equity) in exchange for capital?
• A) Bank loan
• B) Government grant
• C) Angel investment
• D) Revenue-based financing
7. In a pre-money valuation of $2 million, an investor contributes $500,000. What is the post-
money valuation?
• A) $1.5 million
• B) $2 million
• C) $2.5 million
• D) $4 million
8. A Toronto clean-tech startup has fixed costs of $50,000/month, sells its product for
$200/unit, and has variable costs of $120/unit. What is the contribution margin per unit?
• A) $80
• B) $120
• C) $200
• D) $320
9. Which of the following is a one-time startup cost?
Introduction to Entrepreneurship
Toronto Metropolitan University | 2026 Update
Total Time: 30 Minutes | Total Points: 25
SECTION A: Multiple Choice — 15 Questions (1 point each)
1. Which financial statement shows a startup's revenues, expenses, and profit or loss over a
specific period of time?
• A) Balance Sheet
• B) Cash Flow Statement
• C) Income Statement (P&L)
• D) Statement of Retained Earnings
2. A Toronto-based food delivery startup, similar to Ritual, spends $12,000 per month on rent
and $8,000 on salaries (fixed costs). Each delivery contributes $4 in contribution margin. What is
the monthly break-even point in deliveries?
• A) 3,000 deliveries
• B) 4,000 deliveries
• C) 5,000 deliveries
• D) 6,000 deliveries
3. Which of the following is classified as a direct cost in Cost of Goods Sold (COGS)?
• A) Marketing campaign for a new product launch
• B) Raw materials used to manufacture the product
• C) Office rent for the headquarters
• D) Annual accounting software subscription
4. FreshBooks, the Toronto-based accounting software company, reported $10 million in
revenue last year with COGS of $3 million. What was their gross margin percentage?
• A) 30%
, • B) 50%
• C) 70%
• D) 130%
5. A TMU student startup at the DMZ incubator has a burn rate of $25,000 per month and
$150,000 in cash reserves. How many months of runway does this startup have?
• A) 4 months
• B) 5 months
• C) 6 months
• D) 8 months
6. Which funding source typically involves giving up ownership (equity) in exchange for capital?
• A) Bank loan
• B) Government grant
• C) Angel investment
• D) Revenue-based financing
7. In a pre-money valuation of $2 million, an investor contributes $500,000. What is the post-
money valuation?
• A) $1.5 million
• B) $2 million
• C) $2.5 million
• D) $4 million
8. A Toronto clean-tech startup has fixed costs of $50,000/month, sells its product for
$200/unit, and has variable costs of $120/unit. What is the contribution margin per unit?
• A) $80
• B) $120
• C) $200
• D) $320
9. Which of the following is a one-time startup cost?
