BU450 Lesson 4 & 5 Exam SCORE 98 PERCENT

Lesson 4 Exam

 

Question 1

2.5 / 2.5 points

A ________ partnership is a modified form of a general partnership.

Question options:

a) 

restricted

b) 

limited

c) 

partial

d) 

constrained

Question 2

2.5 / 2.5 points

Match the financial objective with its correct definition.

Question options:

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?

Question options:

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 options:

a) 

Profitability statements

b) 

Financial statements

c) 

Owners' equity statements

d) 

Budgets

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 options:

a) 

unreal business name

b) 

fabricated business name

c) 

invented business name

d) 

fictitious business name

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).

Question options:

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.

Question options:

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:

Question options:

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?

Question options:

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:

Question options:

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?

Question options:

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.

Question options:

a) 

Chronological

b) 

Pro forma

c) 

Ad-hoc

d) 

Concurrent

Question 13

2.5 / 2.5 points

Partnerships are organized as either ________ or ________ partnerships.

Question options:

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.

Question options:

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.

Question options:

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.

Question options:

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:

Question options:

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.

Question options:

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:

Question options:

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.

Question options:

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) ________.

Question options:

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 options:

a) 

Strong personal and professional networks

b) 

Unknown in their field

c) 

Investment and/or operating experience

d) 

Ability and willingness to mentor the CEO and the top managers of the firm

Question 23

2.5 / 2.5 points

__________ provide entrepreneurs access to mentors, investors, subject matter experts (such as attorneys and accountants), and other entrepreneurs.

Question options:

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.

Question options:

a) 

employee

b) 

virtual assistant

c) 

intern

d) 

freelancer

Question 25

2.5 / 2.5 points

The members of homogeneous teams are:

Question options:

a) 

diverse in terms of their abilities and experiences.

b) 

diverse in terms of their abilities, but very similar in terms of their experiences.

c) 

similar in terms of their abilities and experiences.

d) 

diverse in terms of their experiences, but very similar in terms of their abilities.

Question 26

2.5 / 2.5 points

Which of the following statements is FALSE regarding founding teams?

Question options:

a) 

The members of heterogeneous teams are diverse in terms of their abilities and experiences.

b) 

Teams that are working together for the first time have an advantage over teams that have worked together before.

c) 

The psychological support that cofounders of a new business can offer one another is an important element of a firm's success.

d) 

The members of homogeneous teams are very similar in terms of their abilities and experiences.

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 options:

a) 

highly educated

b) 

investors

c) 

homogeneous

d) 

heterogeneous

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. One thing that Kelly attributes her success to is that early on she assembled a panel of experts who provided her ongoing direction and advice about her business. What Kelly created is called a(n):

Question options:

a) 

consultation panel.

b) 

suggestion panel.

c) 

idea board.

d) 

advisory board.

Question 29

2.5 / 2.5 points

__________ is a nonprofit organization that provides free consulting services to small businesses.

Question options:

a) 

The Small Business Development Center

b) 

The Small Business Association

c) 

StartupNation

d) 

The Service Corps of Retired Executives

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: Kathy (CEO), Trevor (VP-Finance), Shelia (VP-Sales), a four-person Board of Directors, a five-person Board of Advisors, and Kathy's primary investor, who will assume an advisory role. The group of people that will launch Kathy's firm is called its:

Question options:

a) 

startup squad.

b) 

new venture panel.

c) 

new venture team.

d) 

startup cadre.

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 options:

a) 

consultation board

b) 

idea panel

c) 

counseling panel

d) 

advisory board

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 options:

a) 

liability of preparedness.

b) 

liability of newness.

c) 

burden of novelty.

d) 

burden of freshness.

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 options:

a) 

interviewing a minimum of 20 startup founders to get a sense of what made them successful.

b) 

working in the new product development or corporate innovation division of a major corporation.

c) 

working for a startup for a minimum of two years before starting one.

d) 

joining a startup accelerator.

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, a highly respected athletic shoe and sports apparel company, had agreed to serve on her board of directors. Liz knows that such a high-quality appointment will send an important message to her potential clientele. This phenomenon is referred to as:

Question options:

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.

Question options:

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 options:

a) 

If a firm has a board of directors, it is not permitted to have an advisory board.

b) 

Many people are more willing to serve on a company's board of advisors than its board of directors because it requires less time and there is no potential legal liability involved.

c) 

Most boards of advisers have between 5 and 15 members.

d) 

A growing number of startups are forming advisory boards.

Question 37

2.5 / 2.5 points

A skills profile is a chart that depicts the ________.

Question options:

a) 

preferable skills and abilities of the members of a firm's board of advisors

b) 

preferable skills and abilities of the members of a firm's board of directors

c) 

most important skills that are needed in a business startup and where skills gaps exist

d) 

skills and abilities that will be needed for a firm to maintain an aggressive growth strategy

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:

Question options:

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.

Question options:

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:

Question options:

a) 

linking.

b) 

socializing.

c) 

networking.

d) 

associating.


  

 

 

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