Reference no: EM133116044
1. Successful entrepreneurs exhibit which of the following traits?
a. recognize and seize commercial opportunities
b. economic pessimism
c. tend to be doggedly optimistic
d. both a and c
2. While one must be careful to avoid too many generalizations about entrepreneurial traits or characteristics, which one of the following characteristics would not normally be associated with successful entrepreneurs?
being able to see and seize a commercial opportunity
planning for the venture's future
only being able to see an opportunity after it ceases to be one
being optimistic about the venture's success
3. About one-half of all newly created businesses in the U.S. are dissolved or cease operations within how many years after being started?
a. two years
b. four years
c. six years
d. eight years
4. About 60 percent of all newly created businesses in the U.S. are dissolved or cease operations within how many years after being started?
two years
four years
six years
eight years
societal changes
5. "Fads" are:
a. not predictable
b. have short lives
c. do not involve macro changes
d. all of the above
6. Harry Dent documented major generation waves in the United States during the twentieth century in:
a. 1972
b. 1982
c. 1993
d. 2003
7. "E-commerce" refers to:
a. environmental commerce
b. electronic commerce
c. economic commerce
d. exploratory commerce
8. While entrepreneurial opportunities come from an almost unlimited number of sources, this textbook focuses on:
demographic changes
technological changes
all of the above
9. Indicate the number of principles of entrepreneurial finance that are emphasized in this textbook:
one
three
five
Seven
10. Maximizing the value of the venture to its owners is the common financial goal of which of the following?
a. the entrepreneur
b. the debtholders
c. the venture equity investors
d. both a and c
11. Which of the following is considered to be an "agency" conflict?
a. owner-manager conflict
b. stockholder-manager conflict
c. stockholder-debtholder conflict
d. manager-debtholder conflict
12. Which one of the following possible conflicts of interest is usually minimized through the use of equity incentives?
owner-manager conflicts
owner-employee conflicts
manager-employee conflicts
manager-debtholder conflicts
13. Which one of the following possible conflicts of interest increases in divergence at venture gets close to bankruptcy?
a. owner-manager conflict
b. owner-employee conflict
c. manager-employee conflict
d. manager-debtholder conflict
14. Which of the following is not a life cycle stage of a successful venture?
a. development stage
b. startup stage
c. survival stage
d. cash cow stage
15. Which of the following does not describe activity during the venture's life cycle startup stage?
a. venture's organization
b. venture's development
c. operating cash flows are generated
d. initial revenue model is put in place
16. At which stage of the venture's life cycle stage is best characterized by the period when revenues start to grow and when cash flows from operations begin covering cash outflows?
a. survival stage
b. startup stage
c. rapid growth stage
d. early-maturity stage
17. Which is not a major source of start-up financing for a venture's startup stage?
a. entrepreneur's assets
b. business operations
c. family and friends
d. business angels
18. Obtaining bank loan, issuing bonds, and issuing stock is characteristic of which type of financing during the venture's life cycle?
a. seed financing
b. second round financing
c. mezzanine financing
d. seasoned financing
19. During a venture's rapid growth stage, funds for plant expansion, marketing expenditures, working capital, and product or service improvements is obtained through?
a. seed financing
b. second round financing
c. mezzanine financing
d. seasoned financing
20. Founder and venture investor shares are sold to the public after the initial offering to the public is called?
a. secondary market transaction
b. secondary stock offering
c. venture offering
d. bridge loan