Question

Which of the following is likely to have the largest influence on how easily a business may obtain funding?

A.
Number of firms in the industry

B.
Age of business

C.
None of these

D.
Age of the entrepreneur

QUESTION 6

Which of the following is part of the IPO (initial public offering) process?

A.
Meet all state requirements

B.
None of these

C.
File with the SEC (Securities and Exchange Commision)

D.
Choosing an underwriter

E.
All of these

QUESTION 7

Which of the following do venture capital firms NOT look for in selecting businesses to invest in?

A.
Businesses with competitive advantages

B.
Clear exit strategies

C.
Very high returns

D.
Businesses in the start-up phase of existence

QUESTION 8

Which of the following is true of loan brokers?

  
Fees for loan brokers typically exceed 2.5% of the amount being borrowed by the small business.

  
None of these.

  
They typically evaluate a business's need for borrowing and its option without charging a fee.

  
They take a fee even if they are unable to secure a loan for a small business.

  
All of these.

QUESTION 9

What should entrepreneurs look for regarding the bottom-line performance of their businesses?

A.
Return on investment and the return on their own time and effort are satisfactory.

B.
They are growing at a rate equal to or better than their competitors.

C.
The business is profitable.

D.
There is enough cash generated to keep the business running

QUESTION 10

If a small business generates $150,000/year in cost of goods and has an inventory turnover rate of 4.25, what should its average inventory be (approximately, in $).

A.
$150,000

B.
$63.750

C.
$35,300

D.
The answer cannot be calculated without more information.

QUESTION 11

Gross profit is derived by :

A.
None of the above

B.
Determining all revenues received

C.
Subtracting all costs from all revenue

D.
Subtracting cost of goods sold from revenue

Answer 1

5. Answer is B. Age of business

A business house with long history of profitable business operations is likely to succeed in Obtaining Finance.

6. Answer is D.Choosing an underwriter

An IPO Process involves choosing a underwriter for the purposes for Minimum Subscription.

7. Answer is C.Very high returns

Venture Capitalists do not look for businesses with very high returns but those which can give very high returns in future and are in startup phase

8. Answer is C. They typically evaluate a business's need for borrowing and its option without charging a fee.

Loan Brokers generally charge a fee upon loan sanction.

9. Answer is A.Return on investment and the return on their own time and effort are satisfactory..

The statement is correct.

10. Answer is C. $35300.

If Inventory Turnover is 4.25 times, it implies the Sale would be 4.25 times the Inventory. The Cost of Goods Sold is lower than Sales only by the profit amount. Hence it can be used to approximate Sales. Now when COGS is divided by Inventory Turnover Ratio, we get $35300 approximately.

11. Answer is D.Subtracting cost of goods sold from revenue

The above statement is correct.