A) means that creditors provide a large percentage of the company's total financing. B) gives a small business more borrowing capacity. C) decreases the chances that creditors will lose money if the business is liquidated. D) decreases the creditor's interest in the business. A) means that creditors provide a large percentage of the company's total financing. B) gives a small business more borrowing capacity. C) decreases the chances that creditors will lose money if the business is liquidated. D) decreases the creditor's interest in the business.

Exam 14: Creating a Solid Financial Plan

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Proper financial management requires more than gathering financial data and organizing it into financial statements;the small business manager must analyze those statements and use that information to make better business decisions.

(True/False)

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Question 81

A quick ratio greater than 1:1 indicates that a small firm is overly dependent on inventory and on future sales to satisfy short-term debt.

(True/False)

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Question 82

Calculating ratios is not enough to insure proper financial control.

(True/False)

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Question 83

The net profit on sales ratio measures the owners' rate of return on the investment in the business.

(True/False)

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Question 84

How can the entrepreneur interpret and use the various business ratios available to him/her?

(Essay)

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Question 85

The first step in preparing a break-even analysis is to break business expenses down into "fixed" and "variable" categories.

(True/False)

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Question 86

What are the options for repairing a poor gross profit margin?

(Multiple Choice)

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Question 87

A high debt ratio:

(Multiple Choice)

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Question 88

On a break-even chart,the break-even point occurs at the intersection of the fixed expense line and the total revenue line.

(True/False)

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Question 89

A new business owner must operate for at least six months in order to collect sufficient information to calculate net sales from a profit target.

(True/False)

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Question 90

Fixed assets consist of cash and items to be converted into cash within one year or within the normal operating cycle of the company,whichever is longer.

(True/False)

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Question 91

________ ratios indicate how efficiently the small firm is being managed.

(Multiple Choice)

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Question 92

Break-even analysis is somewhat complex to use,but it is a final screening device.

(True/False)

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Question 93

________ publishes key business ratios for over 800 business categories.

(Multiple Choice)

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Question 94

What is the difference between price per unit and variable cost per unit?

(Multiple Choice)

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Question 95

are those items of value the business owns; are those things the business owes.

(Multiple Choice)

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Question 96

The gross profit margin is calculated by dividing net income by net sales revenue.

(True/False)

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Question 97

When comparing a company's ratios to industry standards,entrepreneurs should ask questions such as:

(Multiple Choice)

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Question 98

The small firm's income statement presents a picture of the firm's profitability at a particular point in time.

(True/False)

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Question 99

The ________ shows the change in the firm's working capital since the beginning of the year.

(Multiple Choice)

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Question 100

Showing 81 - 100 of 133

Exam 14: Creating a Solid Financial Plan

Proper financial management requires more than gathering financial data and organizing it into financial statements;the small business manager must analyze those statements and use that information to make better business decisions.

A quick ratio greater than 1:1 indicates that a small firm is overly dependent on inventory and on future sales to satisfy short-term debt.

Calculating ratios is not enough to insure proper financial control.

The net profit on sales ratio measures the owners' rate of return on the investment in the business.

How can the entrepreneur interpret and use the various business ratios available to him/her?

The first step in preparing a break-even analysis is to break business expenses down into "fixed" and "variable" categories.

What are the options for repairing a poor gross profit margin?

A high debt ratio:

On a break-even chart,the break-even point occurs at the intersection of the fixed expense line and the total revenue line.

A new business owner must operate for at least six months in order to collect sufficient information to calculate net sales from a profit target.

Fixed assets consist of cash and items to be converted into cash within one year or within the normal operating cycle of the company,whichever is longer.

________ ratios indicate how efficiently the small firm is being managed.

Break-even analysis is somewhat complex to use,but it is a final screening device.

________ publishes key business ratios for over 800 business categories.

What is the difference between price per unit and variable cost per unit?

________ are those items of value the business owns;________ are those things the business owes.

The gross profit margin is calculated by dividing net income by net sales revenue.

When comparing a company's ratios to industry standards,entrepreneurs should ask questions such as:

The small firm's income statement presents a picture of the firm's profitability at a particular point in time.

The ________ shows the change in the firm's working capital since the beginning of the year.

Entrepreneurs: the Driving Force Behind Small Business

Ethics and Social Responsibility: Doing the Right Thing

Creativity and Innovation: Keys to Entrepreneurial Success

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

New Business Planning Process: Feasibility Analysis,business Modeling,

Building a Bootstrap Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Managing Cash Flow

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

The Legal Environment: Business Law and Government Regulation

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are those items of value the business owns; are those things the business owes.