ENT 2113 FINAL EXAM QUESTIONS
WITH 100% CORRECT ANSWERS
Which valuation is the most widely excepted method of valuation in the most insightful?
- Answer- Discounted future net cash flow
True or false: if the thermostats are less than $2 million, there is a fast track version of
chapter 11 they gets creditors more control than in a larger organization Chapter 11
filing. - Answer- false
Which of the following points in an entrepreneur keep in mind regarding the negotiation
of a sale? - Answer- Entrepreneur should know the buyer. Entrepreneur should retain
his or her own advisers. Entrepreneur should use a professional mediator for anything
but the most basic of discussions.
Which method of valuation requires the founder to find the P/E ratio of a similar
company and then multiply the P/E ratio by the net cash flow for your five and discount
back as a sales price in your six? - Answer- Price/earnings valuation
The Capitalization of blank method of valuation is performed by taking the net profit of
the organization, subtracting or adding any unusual items, and dividing that figure by
capitalization rate. - Answer- Earnings
Which of the following are true about market capitalization established by a public
company? - Answer- It accounts for future earnings and all future prospects that are
known today. It is the value of the business as it exists at the present time.
The cash flow method of valuation requires which of the following? - Answer- The net
cash flow must be projected for five years into the future. A salvage value for the firm
must be added.
A venture capital-backed business plan typically runs from _______pages long. -
Answer- 25 to 45
Identify the reasons individuals can become frustrated with working in a large
corporation. - Answer- Lack of promotion opportunities
Inflexibility of large corporations in dealing with the needs of an individual's family and
children
,The process of a new business is unique and has developed into a popular area of
study at colleges around the globe. (Check all that apply.) - Answer- initiating
developing
running
What is the most important single factor in the business's success? - Answer- The
business owner
Large firms can obtain economies of scale in some industries because of their ability to
operate on a larger scale than can a small firm. - Answer- Economies of scale
In their book entitled The Millionaire Next Door, Thomas Stanley and William Danko
point out that almost two-thirds of U.S. millionaires are - Answer- self-employed
Which of the following are important elements of a one-page pitch for your business? -
Answer- Product offering
Customer problem
Business model
True or false: Every business in the Fortune 500 started out as a large corporation. -
Answer- False
Recent trends indicate that larger corporations have been _________while
entrepreneurial businesses have been _________rapidly. - Answer- downsizing;
growing
Stakeholders include key suppliers, customers, and employees. These individuals are
critical to the success of a business. - Answer- Stakeholders
__________are often for only a few dollars each and are made directly to entrepreneurs
to encourage self-development in developing nations. - Answer- Microloans
Who is associated not only with the success of the industrial base but also with the
great abuses in business? - Answer- Robber barons
Which of the following statements are true regarding the closure of military bases in the
United States? - Answer- Cities with base closings experienced increases in new
businesses.
Cities with base closings experienced higher income growth.
Cities with base closings offered tax breaks and programs to support new business
development.
, Which of the following are characteristics of venture capital-backed firms? - Answer-
They either start or grow quickly to employ a relatively large number of employees.
They have a developed organizational structure.
They are formed with a harvest plan in place.
The process of forming and managing a new entrepreneurial business in a clear,
sequential manner that is rich in practical application and grounded in research is the
____________part of entrepreneurial business development. - Answer- science
Silicon Valley and Boston's 128 corridor are well known for: - Answer- correct
generating new employment with entrepreneurial ventures.
providing a growing tax revenue base.
providing a basis to the area's economic vitality.
Which of the following are goals of the business plan for a new entrepreneurial
business? - Answer- To provide investors with necessary information
To be a guide to managing the business
To provide self-evaluation
In what time period did the United States see a decline in large multinational firms and a
rise of new opportunities for entrepreneurial businesses? - Answer- The late 1970s to
early 1980s
Which of the following statements is true of venture capital start-ups? - Answer- They
are often formed as high-tech ventures consisting of unique characteristics.
A(n) harvest plan is a plan to exit the business that allows the investors to take
advantage of growth. - Answer- harvest
What significant, historical event marked the beginning of the decline of entrepreneurial
businesses in the United States? - Answer- World War II
Why do individuals decide to start a new business? - Answer- The desire to be one's
own boss
Which of the following descriptions are characteristics of entrepreneurial firms? -
Answer- The operation is designed in the image of the founder.
The number of employees will not be expected to grow beyond 100.
WITH 100% CORRECT ANSWERS
Which valuation is the most widely excepted method of valuation in the most insightful?
- Answer- Discounted future net cash flow
True or false: if the thermostats are less than $2 million, there is a fast track version of
chapter 11 they gets creditors more control than in a larger organization Chapter 11
filing. - Answer- false
Which of the following points in an entrepreneur keep in mind regarding the negotiation
of a sale? - Answer- Entrepreneur should know the buyer. Entrepreneur should retain
his or her own advisers. Entrepreneur should use a professional mediator for anything
but the most basic of discussions.
Which method of valuation requires the founder to find the P/E ratio of a similar
company and then multiply the P/E ratio by the net cash flow for your five and discount
back as a sales price in your six? - Answer- Price/earnings valuation
The Capitalization of blank method of valuation is performed by taking the net profit of
the organization, subtracting or adding any unusual items, and dividing that figure by
capitalization rate. - Answer- Earnings
Which of the following are true about market capitalization established by a public
company? - Answer- It accounts for future earnings and all future prospects that are
known today. It is the value of the business as it exists at the present time.
The cash flow method of valuation requires which of the following? - Answer- The net
cash flow must be projected for five years into the future. A salvage value for the firm
must be added.
A venture capital-backed business plan typically runs from _______pages long. -
Answer- 25 to 45
Identify the reasons individuals can become frustrated with working in a large
corporation. - Answer- Lack of promotion opportunities
Inflexibility of large corporations in dealing with the needs of an individual's family and
children
,The process of a new business is unique and has developed into a popular area of
study at colleges around the globe. (Check all that apply.) - Answer- initiating
developing
running
What is the most important single factor in the business's success? - Answer- The
business owner
Large firms can obtain economies of scale in some industries because of their ability to
operate on a larger scale than can a small firm. - Answer- Economies of scale
In their book entitled The Millionaire Next Door, Thomas Stanley and William Danko
point out that almost two-thirds of U.S. millionaires are - Answer- self-employed
Which of the following are important elements of a one-page pitch for your business? -
Answer- Product offering
Customer problem
Business model
True or false: Every business in the Fortune 500 started out as a large corporation. -
Answer- False
Recent trends indicate that larger corporations have been _________while
entrepreneurial businesses have been _________rapidly. - Answer- downsizing;
growing
Stakeholders include key suppliers, customers, and employees. These individuals are
critical to the success of a business. - Answer- Stakeholders
__________are often for only a few dollars each and are made directly to entrepreneurs
to encourage self-development in developing nations. - Answer- Microloans
Who is associated not only with the success of the industrial base but also with the
great abuses in business? - Answer- Robber barons
Which of the following statements are true regarding the closure of military bases in the
United States? - Answer- Cities with base closings experienced increases in new
businesses.
Cities with base closings experienced higher income growth.
Cities with base closings offered tax breaks and programs to support new business
development.
, Which of the following are characteristics of venture capital-backed firms? - Answer-
They either start or grow quickly to employ a relatively large number of employees.
They have a developed organizational structure.
They are formed with a harvest plan in place.
The process of forming and managing a new entrepreneurial business in a clear,
sequential manner that is rich in practical application and grounded in research is the
____________part of entrepreneurial business development. - Answer- science
Silicon Valley and Boston's 128 corridor are well known for: - Answer- correct
generating new employment with entrepreneurial ventures.
providing a growing tax revenue base.
providing a basis to the area's economic vitality.
Which of the following are goals of the business plan for a new entrepreneurial
business? - Answer- To provide investors with necessary information
To be a guide to managing the business
To provide self-evaluation
In what time period did the United States see a decline in large multinational firms and a
rise of new opportunities for entrepreneurial businesses? - Answer- The late 1970s to
early 1980s
Which of the following statements is true of venture capital start-ups? - Answer- They
are often formed as high-tech ventures consisting of unique characteristics.
A(n) harvest plan is a plan to exit the business that allows the investors to take
advantage of growth. - Answer- harvest
What significant, historical event marked the beginning of the decline of entrepreneurial
businesses in the United States? - Answer- World War II
Why do individuals decide to start a new business? - Answer- The desire to be one's
own boss
Which of the following descriptions are characteristics of entrepreneurial firms? -
Answer- The operation is designed in the image of the founder.
The number of employees will not be expected to grow beyond 100.
