Archives
Chapter 1 Entrepreneurs provide the financing to individuals
1 CHAPTER 1 INTRODUCTION TO FINANCE FOR ENTREPRENEURS True-False Questions and act to convert ideas into commercial opportunities and create opportunities. T. 2. Entrepreneurship is the process of changing ideas into commercial opportunities and creating value. T. 3. An entrepreneur […]
Chapter 10 The Equity Valuation Method Involving Zero Explicitly
59 CHAPTER 10 VALUING EARLY-STAGE VENTURES True–False Questions risk and delay is called discounted cash flow (DCF). F. 2. The stepping stone year is the first year before the explicit forecast period. T. 3. The terminal or horizon value is […]
Chapter 11 Use The Following Information For Problems Through
67 CHAPTER 11 VENTURE CAPITAL VALUATION METHODS True–False Questions projecting both intermediate and terminal/exit flows to investors. T. 2. Venture investors returns depend on the venture’s ability to generate cash flows or to find an acquirer for the venture. F. […]
Chapter 12 When Screening Prospective New Ventures Venture Capital
78 CHAPTER 12 PROFESSIONAL VENTURE CAPITAL True–False Questions investments, professional venture capitalists have raised funds from other investors to invest in the portfolio. T. 2. The establishment of the Small Business Administration was the first major government foray into venture […]
Chapter 13 Despite the high risk and costs of using a facilitator
85 CHAPTER 13 OTHER FINANCING ALTERNATIVES True–False Questions to obtain financing, many start-ups never-the-less seek them as a source of funds due to the length of time it takes to raise new funds. F. 2. Collateral plays an important role […]
Chapter 14 Security Structures And Determining Enterprise Values
73 CHAPTER 14 SECURITY STRUCTURES AND DETERMINING ENTERPRISE VALUES True–False Questions preference on dividends but not liquidation proceeds. F. 2. For preferred noncumulative stock, all previously unpaid preferred dividends must be paid before any common stock dividend is paid. F. […]
Chapter 15 Harvesting The Business Venture Investment
90 CHAPTER 15 HARVESTING THE BUSINESS VENTURE INVESTMENT True–False Questions owners’ investment value is known as harvesting. T. 2. When harvesting a venture, the methodical distribution of assets directly to the owners is known as a systematic liquidation. F. 3. […]
Chapter 16 Financially Troubled Ventures Turnaround Opportunities
97 CHAPTER 16 FINANCIALLY TROUBLED VENTURES: TURNAROUND OPPORTUNITIES? True–False Questions the relevant financing and operating decisions faced are either restructuring or liquidating. T. 2. During the rapid growth stage of a venture’s life cycle, the relevant financing and operating decisions […]
Chapter 2 Swot Analysis Should The Very Least Consider
10 CHAPTER 2 DEVELOPING THE BUSINESS IDEA True-False Questions common to price new products or services at high markups or profit margins. F. 2. Lifestyle firms are growth-driven in terms of revenues, profits, and cash flows and also performance-oriented as […]
Chapter 3 Based 2012 Tax Schedules The First Dollar
17 CHAPTER 3 ORGANIZING AND FINANCING A NEW VENTURE True-False Questions that the limited partnership has partners who actively manage the day-to-day operations but also has passive investors. T. 2. A limited partnership limits certain partners’ liabilities to pay the […]
Chapter 4 Note Use The Following Data For The
24 CHAPTER 4 PREPARING AND USING FINANCIAL STATEMENTS True-False Questions accrual accounting. T. 5. Accrual accounting is the practice of recording economic activity when recognized rather than waiting until realized. F. 6. The balance sheet equation is: Total Assets = […]
Chapter 5 Use The Following Information Determine Firms
31 CHAPTER 5 EVALUATING OPERATING AND FINANCIAL PERFORMANCE True-False Questions time, financial ratios are useful means of summarizing large amounts of financial data for comparative purposes. F. 2. Second-round, mezzanine, and liquidity-stage financing generally occur during a venture’s survival stage. […]
Chapter 6 Which The Following Not Part The Operating
38 CHAPTER 6 MANAGING CASH FLOW True-False Questions and obtaining seed financing occurs during a venture’s development stage. T. 2. The actions of monitoring financial performance, determining project cash needs, and obtaining first-round financing occurs during a venture’s survival stage. […]
Chapter 7 Suppose The Real Risk Free Rate Interest
45 CHAPTER 7 TYPES AND COSTS OF FINANCIAL CAPITAL True-False Questions depreciation is the same emphasis as that of finance managers. T. 2. Traditional accounting does not focus on the implicit cost of equity that is the required capital gains […]
Chapter 8 Considerations When Obtaining Venture Financing
52 CHAPTER 8 SECURITIES LAW CONSIDERATIONS WHEN OBTAINING VENTURE FINANCING True-False Questions exchanges and over-the-counter markets. T. 2. The Investment Company Act of 1940 defines investment companies and excludes them from using some of the registration exemptions originating in the […]
Chapter 9 Projecting Financial Statements Net Cash Flow
38 CHAPTER 9 PROJECTING FINANCIAL STATEMENTS True-False Questions capital needs. T. 2. In a typical venture’s life cycle, the rapid-growth stage involves creating and building value, obtaining additional financing, and examining exit opportunities. T. 3. Forecasting for firms with operating […]