How many years after being started

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Reference no: EM132467017

1. 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

2. 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 b

e. both a and c

3. Which of the following agency conflicts can be mitigated by issuing stock options to key employees in an entrepreneurial venture

a. Stockholder-manager conflict

b. Stockholder-debtholder conflict

c. Stockholder-stockholder conflict

d. Manager-debtholder conflict

e. All of the above

4. Which of the following does usually NOT describe an activity during a venture's start-up stage

a. Monitoring cash build/burn

b. Generating cash-flows

c. Issuing long-term debt

d. Issuing short-term debt

5. "score" in the range of 2.34-3.00 using the VOS IndicatorTM would be considered a:

a. a low score

b. an average score

c. a high score

d. a very, very high score

6. Direct costs of producing a product or providing a service is called

a. gross profit

b. gross profit margin

c. Cash variable cost

d. total cost

e. cost of goods sold

7. Return on assets can be stated as which of the following?

a. net after-tax profit divided by total assets

b. net profit margin times asset turnover

c. net cash flow divided by total assets

d. both a and b

e. both a and c

8. Determine the cost of goods sold for a venture with the following financial information: revenue = $50,000; net profit margin = 20%; gross profit margin = 70%

a. $40,000

b. $35,000

c. $15,000

d. $10,000

9. The balance sheet equation states that total assets must equal:

a. total liabilities + depreciation

b. total liabilities + owners' equity

c. owners' equity + net income

d. owners' equity + current liabilities

e. total liabilities + net income

10. Your venture has total assets of $690, net fixed assets of $500, long term debt of $80, and stockholders' equity of $400. What is the amount of your venture's current liabilities?

a. -$100

b. $100

c. $210

d. $290

e. $1,090

Reference no: EM132467017

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