EEE 2023 FINAL EXAM (OKSTATE EASTHAM)
Financial management deals with 2 activities - Answers :raising money and managing a
companies finances
Financial managements overall question is... - Answers :are we in good shape
financially?
Entrepreneurial firm main financial objectives - Answers :profitability, liquidity, efficiency,
and stability
Define profitability - Answers :the ability to earn a profit
Define liquidity - Answers :a companies ability to meet its short term financial obligations
Define efficiency - Answers :how productively a firm utilizes its assets relative to its
revenue and its profits
Define stability - Answers :the strength and vigor of the firms overall financial posture
Define a financial statement - Answers :a written report that quantitatively describes a
firms financial health
Define forecasts - Answers :an estimate of a firms future income and expenses, based
on its past performance, its current circumstances, and future plans
Define budget - Answers :itemized forecasts of a companies financial needs
The process of financial management - Answers :preparation of historic financial
statements
Preparation of forecasts preparation of pro forma financial statements
Ongoing analysis of financial results
Financial ratios purpose is to - Answers :discern whether the firm is meeting its financial
objectives and how it stacks up against its industry peers
Most common SEC required filing form is the - Answers :10-K
Pro forma financial statements are - Answers :projections for future periods based on
forecasts
Income statement reflects the results of the operations in a - Answers :specific period of
time
, Define profit margin - Answers :return on sales (net income/net sales)
Balance sheet reflects the result of the operations in a - Answers :specific point in time
(snapshot)
What is a firms current ratio - Answers :the firms current assets divided by its current
liabilities
The statement of cash flows depicts the changes in a fimrs - Answers :cash position for
a specified period of time
Define break even point - Answers :total revenues=total costs
Define working capital - Answers :current assets- current liabilities
Separate elements of a new venture team - Answers :key employees, board of
directors, management team, board of advisors, lenders and investors, and other
professionals
Main reason for "liability of newness" - Answers :people involved can't adjust fast
enough to their new roles and the firm lacks a track record of success
Common mistake when making a new venture team - Answers :presenting an "I am
above team" mentality
A majority of new ventures are founded by - Answers :a team
What is a key element of a successful founding team - Answers :heterogeneous teams
of diverse individuals
A founding team larger than .... Is too large - Answers :4
Preferred attributes of sole entrepreneurs and members of a new venture team -
Answers :higher education, prior entrepreneurial experience, relevant industry
experience, and broad social and professional network
What is a skills profile - Answers :a chart that depicts the most important skills when
hiring
What position provides a potential employer a chance to "look" at a potential hire -
Answers :internship
Difference between employee and freelancer (independent contractor) - Answers
:employee works for your business, at your location, using your tool, according to your
Financial management deals with 2 activities - Answers :raising money and managing a
companies finances
Financial managements overall question is... - Answers :are we in good shape
financially?
Entrepreneurial firm main financial objectives - Answers :profitability, liquidity, efficiency,
and stability
Define profitability - Answers :the ability to earn a profit
Define liquidity - Answers :a companies ability to meet its short term financial obligations
Define efficiency - Answers :how productively a firm utilizes its assets relative to its
revenue and its profits
Define stability - Answers :the strength and vigor of the firms overall financial posture
Define a financial statement - Answers :a written report that quantitatively describes a
firms financial health
Define forecasts - Answers :an estimate of a firms future income and expenses, based
on its past performance, its current circumstances, and future plans
Define budget - Answers :itemized forecasts of a companies financial needs
The process of financial management - Answers :preparation of historic financial
statements
Preparation of forecasts preparation of pro forma financial statements
Ongoing analysis of financial results
Financial ratios purpose is to - Answers :discern whether the firm is meeting its financial
objectives and how it stacks up against its industry peers
Most common SEC required filing form is the - Answers :10-K
Pro forma financial statements are - Answers :projections for future periods based on
forecasts
Income statement reflects the results of the operations in a - Answers :specific period of
time
, Define profit margin - Answers :return on sales (net income/net sales)
Balance sheet reflects the result of the operations in a - Answers :specific point in time
(snapshot)
What is a firms current ratio - Answers :the firms current assets divided by its current
liabilities
The statement of cash flows depicts the changes in a fimrs - Answers :cash position for
a specified period of time
Define break even point - Answers :total revenues=total costs
Define working capital - Answers :current assets- current liabilities
Separate elements of a new venture team - Answers :key employees, board of
directors, management team, board of advisors, lenders and investors, and other
professionals
Main reason for "liability of newness" - Answers :people involved can't adjust fast
enough to their new roles and the firm lacks a track record of success
Common mistake when making a new venture team - Answers :presenting an "I am
above team" mentality
A majority of new ventures are founded by - Answers :a team
What is a key element of a successful founding team - Answers :heterogeneous teams
of diverse individuals
A founding team larger than .... Is too large - Answers :4
Preferred attributes of sole entrepreneurs and members of a new venture team -
Answers :higher education, prior entrepreneurial experience, relevant industry
experience, and broad social and professional network
What is a skills profile - Answers :a chart that depicts the most important skills when
hiring
What position provides a potential employer a chance to "look" at a potential hire -
Answers :internship
Difference between employee and freelancer (independent contractor) - Answers
:employee works for your business, at your location, using your tool, according to your
