Lesson 4 Exam
Question 1 2.5 / 2.5 points
A ________ partnership is a modified form of a general partnership.
a) restricted
b) limited
c) partial
d) constrained
Question 2 2.5 / 2.5 points
Match the financial objective with its correct definition.
a) stability - the overall health of the financial structure of the firm, particularly as it relates to its debt-to-equity ratio
b) profitability - how productively a firm utilizes its assets
c) liquidity - a company's ability to make a profit
d) efficiency - a company's ability to meet its short-term obligations
Question 3 2.5 / 2.5 points
Which of the following is NOT an advantage of a general partnership?
a) Business losses can be deducted against the partners' other sources of income.
b) The skills and abilities of more than one individual are available to the firm.
c) The liquidity of each partner's investment is low.
d) Creating one is relatively easy and inexpensive compared to a C corporation or limited liability company.
Question 4 2.5 / 2.5 points
________ are itemized forecasts of a company's income, expenses, and capital needs and are also an important tool for financial planning and control.
Question 5 2.5 / 2.5 points
Most businesses that plan to use a fictitious name, which is any name other than the business owner's name, need a(n) ________ permit.
Question 6 2.5 / 2.5 points
In the context of a firm's statement of cash flows, ________ activities include the purchase, sale, or investment in fixed assets (e.g., real estate, equipment, and buildings).
a) operating
b) investing
c) capital
d) financing
Question 7 2.5 / 2.5 points
In the context of a firm's statement of cash flows, ________ activities include cash raised during the period by borrowing money or selling stock and/or cash used during the period by paying dividends, buying back outstanding stock, or buying back outstanding bonds.
a) investing
b) financing
c) operating
d) liquidity
Question 8 2.5 / 2.5 points
On a firm's income statement, net sales consists of:
a) operating expenses minus cost of sales.
b) total sales minus allowances for returned goods and discounts.
c) cost of sales minus allowances for returned goods and discounts.
d) cost of sales minus operating expenses.
Question 9 2.5 / 2.5 points
Which of the following is the most important thing that an entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization?
a) Implement an ethics training program
b) Write a mission statement
c) Lead by example
d) Hire an ethics compliance officer
Question 10 2.5 / 2.5 points
A company's ability to productively utilize its assets relative to its revenue and its profits is referred to as:
a) efficiency.
b) effectiveness.
c) stability.
d) liquidity.
Question 11 2.5 / 2.5 points
Which financial statement records all of a firm's revenues and expenses for a given period and shows whether the firm is making a profit or experiencing a loss?
a) Balance sheet
b) Owner's equity statement
c) Statement of cash flows
d) Income statement
Question 12 2.5 / 2.5 points
________ financial statements are projections for future periods based on forecasts and are typically completed for two to three years into the future.
a) Chronological
b) Pro forma
c) Ad-hoc
d) Concurrent
Question 13 2.5 / 2.5 points
Partnerships are organized as either ________ or ________ partnerships.
a) specific; general
b) narrow; broad
c) inward; outward
d) general; limited
Question 14 2.5 / 2.5 points
A ________ sets forth the rights and duties of the general and limited partners, along with the details of how the partnership will be managed and eventually dissolved.
a) partnership accord
b) restricted partnership agreement
c) business partnership agreement
d) limited partnership agreement
Question 15 2.5 / 2.5 points
________ is the process in which an impartial third party helps those involved in a dispute reach an agreement.
a) Conciliation
b) Reconciliation
c) Negotiation
d) Mediation
Question 16 2.5 / 2.5 points
A code of ________ is a formal statement of an organization's values on certain ethical and social issues.
a) conduct
b) behavior
c) performance
d) principles
Question 17 2.5 / 2.5 points
Money owed to a company by its customers is referred to as:
a) accounts obtainable.
b) accounts payable.
c) accounts receivable.
d) inventory.
Question 18 2.5 / 2.5 points
________ financial statements reflect past performance and are usually prepared on a quarterly and annual basis.
a) Chronological
b) Ad-hoc
c) Historical
d) Concurrent
Question 19 2.5 / 2.5 points
The four main financial objectives of a firm are:
a) efficiency, effectiveness, strength, and flexibility.
b) power, success, efficiency, and effectiveness.
c) control, effectiveness, liquidity, and power.
d) profitability, liquidity, efficiency, and stability.
Question 20 2.5 / 2.5 points
________ is a company's ability to meet its short-term financial obligations.
a) Liquidity
b) Profitability
c) Effectiveness
d) Stability
Lesson 5 Exam
Question 21 2.5 / 2.5 points
Shelly Cook recently launched a social network for chefs. One thing Shelly is thinking about is creating is a panel of experts who can provide her ongoing direction and advice regarding the future of her business. Shelly is thinking about creating a(n) ________.
a) analysis panel
b) discussion board
c) advisory board
d) suggestion panel
Question 22 2.5 / 2.5 points
Which of the following was NOT identified in the textbook as an attribute of an effective board member?
Question 23 2.5 / 2.5 points
__________ provide entrepreneurs access to mentors, investors, subject matter experts (such as attorneys and accountants), and other entrepreneurs.
a) Networking events
b) New venture teams
c) Start-up accelerators
d) Advisory boards
Question 24 2.5 / 2.5 points
A(n) ________ is a person who is in business for themselves, works on their own time with their own tools and equipment, and performs services for a number of different clients.
a) employee
b) virtual assistant
c) intern
d) freelancer
Question 25 2.5 / 2.5 points
The members of homogeneous teams are:
Question 26 2.5 / 2.5 points
Which of the following statements is FALSE regarding founding teams?
Question 27 2.5 / 2.5 points
If the members of a team are _________, they are likely to have different points of view about technology, hiring decisions, competitive tactics, and other important activities.
Question 28 2.5 / 2.5 points
Kelly Andersen founded a technology consulting firm several years ago. Her firm has grown rapidly and is financially successful. … What Kelly created is called a(n):
Question 29 2.5 / 2.5 points
__________ is a nonprofit organization that provides free consulting services to small businesses.
Question 30 2.5 / 2.5 points
Kathy Denver is preparing to launch a home security firm. The team of people that will launch Kathy's firm are as follows: …The group of people that will launch Kathy's firm is called its:
Question 31 2.5 / 2.5 points
A(n) ________ is a panel of experts who are asked by a firm's managers to provide counsel and advice on an ongoing basis.
Question 32 2.5 / 2.5 points
The fact that companies often falter because the people who start the firms can't adjust quickly enough to their new roles and because the firm lacks a "track record" with outside buyers and sellers, is referred to as the:
Question 33 2.5 / 2.5 points
The Partnering for Success feature in Chapter 9 focuses on a technique that entrepreneurs use to overcome the liabilities of newness. The suggestion made by the feature is to overcome the liabilities of newness by considering:
Question 34 2.5 / 2.5 points
Liz Zackery just launched a firm in the sporting goods industry. On the day the company was launched, Liz issued a press release, indicating that the vice president of New Balance, .. This phenomenon is referred to as:
a) championing.
b) signaling.
c) profiling.
d) indicating.
Question 35 2.5 / 2.5 points
In the context of boards of directors, a(n) ________ director is someone who is not employed by the firm.
a) outside
b) inside
c) external
d) impartial
Question 36 0 / 2.5 points
Which of the following statements about advisory boards is INCORRECT?
Question 37 2.5 / 2.5 points
A skills profile is a chart that depicts the ________.
Question 38 2.5 / 2.5 points
Calvin Tucker is in the process of launching an educational services firm. He plans to incorporate the firm. Because the firm will be incorporated, Calvin is legally required to have a:
a) board of investors.
b) board of advisors.
c) customer advisory board.
d) board of directors.
Question 39 2.5 / 2.5 points
Unlike a __________, an advisory board possesses no legal responsibility for the firm and gives nonbinding advice.
a) start-up team
b) new venture panel
c) board of directors
d) board of investors
Question 40 2.5 / 2.5 points
The process of building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to the firm is called:
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