Question 1

The set of assumptions on which financial projections are based have little meaning.

Accepted Answer

A) True 
 B)False  False

Question 2

Capital budgeting is designed to show

Accepted Answer

A) how many projects, in total, should be selected. 
B) which project is most profitable. 
C) which of several mutually exclusive projects should be selected 
D) how to evaluate projects based on rates of return. 
A) how many projects, in total, should be selected. 
B) which project is most profitable. 
C) which of several mutually exclusive projects should be selected 
D) how to evaluate projects based on rates of return. A

Question 3

The traditional accounting equation that verifies the accuracy of the entrepreneur's balance sheet is

Accepted Answer

A) assets = liabilities + owners' equity. 
B) assets + liabilities = owner's equity. 
C) assets + owner's equity = liabilities. 
D) assets = liabilities - owner's equity. 
A) assets = liabilities + owners' equity. 
B) assets + liabilities = owner's equity. 
C) assets + owner's equity = liabilities. 
D) assets = liabilities - owner's equity. A

Question 4

Pro forma statements show the firm's present financial position.

Accepted Answer

A) True 
 B)False

Question 5

A budget is one of the most powerful tools that an entrepreneur can use in planning business operations.

Accepted Answer

A) True 
 B)False

Question 6

Define break-even analysis and identify some useful methods for finding the break-even point.

Accepted Answer

Break-even analysis is the point in prod

Question 7

A budget that is a statement of estimated income and expenses over a specified period of time is referred to as an

Accepted Answer

A) anticipated budget. 
B) operating budget. 
C) entrepreneurial budget. 
D) expected results budget. 
A) anticipated budget. 
B) operating budget. 
C) entrepreneurial budget. 
D) expected results budget.

Question 8

Break-even analysis is a technique commonly used to assess the

Accepted Answer

A) rate of return on investment. 
B) expected product profitability. 
C) net present value. 
D) total costs. 
A) rate of return on investment. 
B) expected product profitability. 
C) net present value. 
D) total costs.

Question 9

The principal objective of capital budgeting is to maximize the value of the firm.

Accepted Answer

A) True 
 B)False

Question 10

Break-even analysis is used to tell how many units must be sold in order to break even at a particular selling price.

Accepted Answer

A) True 
 B)False

Question 11

Contribution margin is the difference between

Accepted Answer

A) selling price and fixed cost per unit. 
B) purchase price and variable cost per unit. 
C) selling price and variable cost per unit. 
D) purchase price and fixed cost per unit. 
A) selling price and fixed cost per unit. 
B) purchase price and variable cost per unit. 
C) selling price and variable cost per unit. 
D) purchase price and fixed cost per unit.

Question 12

The principle objective of capital budgeting is to

Accepted Answer

A) minimize the risks of the firm. 
B) maximize the value of the firm. 
C) maximize the assets of the firm. 
D) optimize the number of project requests. 
A) minimize the risks of the firm. 
B) maximize the value of the firm. 
C) maximize the assets of the firm. 
D) optimize the number of project requests.

Question 13

Financial information pulls together all the information presented in the other segments of the business.

Accepted Answer

A) True 
 B)False

Question 14

What is included in an operating budget and how is this helpful?

Accepted Answer

The operating budget includes a sales fo

Question 15

A key concept in developing an expense budget is that of

Accepted Answer

A) fixed costs. 
B) labor costs. 
C) taxes. 
D) rent. 
A) fixed costs. 
B) labor costs. 
C) taxes. 
D) rent.

Question 16

Explain what a cash flow budget tells a manager/owner.

Accepted Answer

A cash flow budget is an accurate record

Question 17

Contribution margin is the difference between the selling price and the fixed cost per unit.

Accepted Answer

A) True 
 B)False

Question 18

The cash-flow budget provides an overview of cash inflows and outflows for the budget period.

Accepted Answer

A) True 
 B)False

Question 19

The cash flow budget describes

Accepted Answer

A) cash inflows/cash outflows. 
B) cash outflows/accounts receivables. 
C) interest income/interest expense. 
D) profits/costs. 
A) cash inflows/cash outflows. 
B) cash outflows/accounts receivables. 
C) interest income/interest expense. 
D) profits/costs.

Question 20

Comparing financial numbers in order to make decisions is referred to as:

Accepted Answer

A) ratio analysis. 
B) debt reduction. 
C) comparable fractions. 
D) descriptive statistics. 
A) ratio analysis. 
B) debt reduction. 
C) comparable fractions. 
D) descriptive statistics.

The set of assumptions on which financial projections are based have little meaning.

Capital budgeting is designed to show

The traditional accounting equation that verifies the accuracy of the entrepreneur's balance sheet is

Pro forma statements show the firm's present financial position.

A budget is one of the most powerful tools that an entrepreneur can use in planning business operations.

Define break-even analysis and identify some useful methods for finding the break-even point.

A budget that is a statement of estimated income and expenses over a specified period of time is referred to as an

Break-even analysis is a technique commonly used to assess the

The principal objective of capital budgeting is to maximize the value of the firm.

Break-even analysis is used to tell how many units must be sold in order to break even at a particular selling price.

Contribution margin is the difference between

The principle objective of capital budgeting is to

Financial information pulls together all the information presented in the other segments of the business.

What is included in an operating budget and how is this helpful?

A key concept in developing an expense budget is that of

Explain what a cash flow budget tells a manager/owner.

Contribution margin is the difference between the selling price and the fixed cost per unit.

The cash-flow budget provides an overview of cash inflows and outflows for the budget period.

The cash flow budget describes

Comparing financial numbers in order to make decisions is referred to as:

Entrepreneurship: Evolutionary Development-Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: the Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Pathways to Entrepreneurial Ventures

Sources of Capital for Entrepreneurs

Legal Challenges of Entrepreneurial Ventures

Marketing Challenges for Entrepreneurial Ventures

Developing an Effective Business Plan

Strategic Entrepreneurial Growth

Valuation of Entrepreneurial Ventures

Harvesting the Entrepreneurial Venture

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Exam 11: Financial Preparation for Entrepreneurial Ventures

The set of assumptions on which financial projections are based have little meaning.

Capital budgeting is designed to show

The traditional accounting equation that verifies the accuracy of the entrepreneur's balance sheet is

Pro forma statements show the firm's present financial position.

A budget is one of the most powerful tools that an entrepreneur can use in planning business operations.

Define break-even analysis and identify some useful methods for finding the break-even point.

A budget that is a statement of estimated income and expenses over a specified period of time is referred to as an

Break-even analysis is a technique commonly used to assess the

The principal objective of capital budgeting is to maximize the value of the firm.

Break-even analysis is used to tell how many units must be sold in order to break even at a particular selling price.

Contribution margin is the difference between

The principle objective of capital budgeting is to

Financial information pulls together all the information presented in the other segments of the business.

What is included in an operating budget and how is this helpful?

A key concept in developing an expense budget is that of

Explain what a cash flow budget tells a manager/owner.

Contribution margin is the difference between the selling price and the fixed cost per unit.

The cash-flow budget provides an overview of cash inflows and outflows for the budget period.

The cash flow budget describes

Comparing financial numbers in order to make decisions is referred to as:

Entrepreneurship: Evolutionary Development-Revolutionary Impact

The Entrepreneurial Mind-Set in Individuals: Cognition and Ethics

The Entrepreneurial Mind-Set in Organizations: Corporate Entrepreneurship

Social Entrepreneurship and the Global Environment for Entrepreneurship

Innovation: the Creative Pursuit of Ideas

Assessment of Entrepreneurial Opportunities

Pathways to Entrepreneurial Ventures

Sources of Capital for Entrepreneurs

Legal Challenges of Entrepreneurial Ventures

Marketing Challenges for Entrepreneurial Ventures

Developing an Effective Business Plan

Strategic Entrepreneurial Growth

Valuation of Entrepreneurial Ventures

Harvesting the Entrepreneurial Venture

Filters