ENTREPRENEUR
Which of the following is used to examine a venture's performance over time?
a) trend analysis
b) qualitative analysis
c) cross-sectional analysis
d) industry comparable analysis
trend analysis
The type of financing used during the rapid-growth life cycle stage includes:
a) mezzanine financing
b) second-round financing
c) liquidity-stage financing
d) all of these choices
all of these choices
The entrepreneur, business angels, and VCs are important users of financial ratios and measures during which of the following life cycle stages?
a) survival and rapid-growth stages
b) development and startup stages
c) development, startup, and rapid-growth stages
d) development, startup, survival, and rapid-growth stages
development, startup, survival, and rapid-growth stages
A firm would not be considered to be an early-stage venture when it reaches which of the following life cycle stages?
a) startup stage
b) rapid-growth stage
c) survival stage
d) early-maturity stage
d)
early-maturity stage
Which of the following is not a basic ratio technique used to conduct financial analysis?
a) sensitivity analysis
b) trend analysis
c) cross-sectional analysis
d) industry comparable analysis
sensitivity analysis
Which of the following is not considered to be an operating schedule?
a) balance sheet schedule
b) sales schedule
c) purchases schedule
d) wages and commissions schedule
a)
balance sheet schedule
Which of the following ratios is computed by dividing the average total assets by the average owners' equity?
a) debt-to-equity ratio
b) equity multiplier
c) current liabilities-to-total-debt ratio
d) current ratio
b)
equity multiplier
Investment bankers and commercial banks are important users of financial ratios and measures during which of the following life cycle stages
a) survival stage
b) rapid-growth stage
c) startup stage
d)development stage
rapid-growth stage
Which of the following conversion periods is not a component in the cash conversion cycle?
a) sale-to-cash conversion period
b) inventory-to-sale conversion period
c) purchase-to-payment conversion period
d) fixed assets-to-usage conversion period
d)
fixed assets-to-usage conversion period
The term "cash build" is measured as:
a) net sales minus expenses minus (plus) an increase (decrease) in inventories
b) net income plus depreciation
c) net sales minus (plus) an increase (decrease) in receivables
d) net income plus depreciation minus (plus) an increase (decrease) in payables
c)
net sales minus (plus) an increase (decrease) in receivables
Which of the following is not part of the operating cycle?
a) time it takes to sell products
b) time it takes to produce products
c) time it takes to pay suppliers
d) time it takes to collect receivables
c)
time it takes to pay suppliers
Based on the following information, determine the venture's cash conversion cycle: inventory-to-sale conversion period = 112.9 days; sale-to-cash conversion period = 57.1 days; and purchase-to-payment conversion period = 76.8 days.
a) 189.7 days
b) 170.0 days
c) 93.2 days
d) 133.9 days
c)
93.2 days
First-round financing occurs primarily during which of the following life cycle stages?
a) startup stage
b) development stage
c) survival stage
d) rapid-growth stage
survival stage
The difference between a venture's ability to generate cash to pay interest and the amount of interest it has to pay is determined by which of the following ratios?
a) debt-to-equity ratio
b) fixed-charges coverage
c) equity multiplier
d) interest coverage
d)
interest coverage
During which round of financing is a venture typically most accurate in forecasting sales?
a) mezzanine financing
b) seasoned financing
c) first-round financing
d) startup financing
b)
seasoned financing
Which of the following is not considered to be a major emphasis during the rapid-growth stage in a successful venture's life cycle?
a) create and build value
b) choose organizational form
c) obtain additional financing
d) examine exit opportunities
b)
choose organizational form
Based on the following information, determine the average receivables (rounded to thousands of dollars) that were outstanding: net sales = $575,000; sale-to-cash conversion period = 57.1 days; purchase-to-payment conversion period = 76.8 days; and cost of goods sold = $380,000.
a) $180,000
b) $90,000
c) $121,000
d) $45,000
b)
$90,000
Seed financing is generally associated with which of the following life cycle stages?
a) startup stage
b) development stage
c) survival stage
d) rapid-growth stage
b)
development stage
A major difference exists between a venture's operating cycle and its cash conversion cycle because the conversion cycle includes the time to:
a) produce a finished good
b) buy materials
c) collect sales made on credit
d) pay suppliers for purchases on credit
d)
pay suppliers for purchases on credit
A new venture usually begins its sales forecast by first:
a) using a "bottom-up" market-driven approach
b) forecasting industry sales and expressing the venture's sales as a percent of industry sales
c) extrapolating past sales
d) working with existing and potential customers
b)
forecasting industry sales and expressing the venture's sales as a percent of industry sales
An expected value is:
a) a weighted average of a set of scenarios or possible outcomes
b) a simple average of a set of scenarios or possible outcomes
c) the highest scenario value or outcome
d) the lowest scenario value or outcome
a)
a weighted average of a set of scenarios or possible outcomes
Following is financial statement information for Rogex Corporation: cash = $242; accounts receivable = $850; inventory = $820; net fixed assets = $3,408; accounts payable = $700; short-term notes payable = $740; long-term liabilities = $1,100; common stock = $1,160; and retained earnings = $1,620. The total-debt-to-total-assets ratio for Rogex is:
a) 0.71
b) 0.48
c) 0.27
d) 0.53
b)
0.48
First-round financing is generally associated with which of the following life cycle stages?
a) startup stage
b) development stage
c) survival stage
d) rapid-growth stage
c)
survival stage
Based on the following information, determine the venture's inventory-to-sale conversion period: cash conversion cycle = 250 days; sale-to-cash conversion period = 60 days; and purchase-to-payment conversion period = 70 days.
a) 140 days
b) 70 days
c) 240 days
d) 260 days
d)
260 days
Determine a firm's financial policy multiplier based on the following information: sustainable growth rate = 20%; net profit margin = 10%; and asset turnover = 2.0 times.
a) 1.25
b) 1.00
c) 1.50
d) 2.00
b)
1.00