EEE 2023 EXAM 2 QUESTIONS
WITH CORRECT ANSWERS (100%
VERIFIED ANSWERS)
Which of the following is NOT an advantage of a general partnership? - Answer-Liability
on the part of each general partner is unlimited.
Tom, Sam, and Pete run a business, the Argyle Food Center. Each has invested
$100,000 in the venture. If Tom and Sam have unlimited liability but Pete is liable only
up to $100,000, what is the organizational form of this venture? - Answer-limited
partnership
Which of the following is NOT an advantage of a C corporation? - Answer-Income is
taxed at the corporate and shareholder levels
Which of the following is NOT a standard that a business must meet to qualify for status
as a subchapter S corporation? - Answer-Its shareholders need not be U.S. citizens
The ability of a firm to earn a profit - Answer-profitability
The ability of a company to meet or satisfy its short-term obligations - Answer-liquidity
How productively a firm uses its assets relative to its revenue and profits - Answer-
efficiency
The strength and vigor of the firm's overall financial standing - Answer-stability
A written report that describes a firm's health from a quantitative perspective - Answer-
financial statement
estimates of a firm's future sales, income, expenses, and capital expenditures based on
its past performance, current situation and its future plans - Answer-forecasts
itemized forecasts of a firm's income, expenses and capital requirements - Answer-
budgets
Securities and Exchange Commission - Answer-SEC
statements that reflect past performance -- prepared on a quarterly and annual basis
(required by the SEC) - Answer-historical financial statements
, projections for expected performance in future periods -- forecasts for 2-3 years into the
future (not required by the SEC) - Answer-pro forma financial statements
Reflects the results of a firm's operations over a specified period of time - Answer-
income statement
A snapshot of a company's assets, its liabilities, and owners' equity - Answer-balance
sheet
the changes in a firm's cash position for a specified period of time and details why the
changes occurred - Answer-statement of cash flows
Predictions of a firm's future sales, expenses, income, and capital expenditures -
Answer-forecast
a method for expressing each expense item as a percentage of sales - Answer-percent-
of-sales
The group of people who move a new venture from an idea to a fully functioning firm -
Answer-a new-venture team
Members with diverse abilities and experiences - Answer-heterogenous founding team
members who are very similar to one another - Answer-homogenous founding team
______ refers to the fact that companies often falter because the people who start them
aren't able to adjust quickly enough to their new roles and because the firm lacks a
"track record" with outside buyers and suppliers. - Answer-liability of newness
Various people or groups form part of a
new-venture
team; however, _____ are(is) not one of them. - Answer-suppliers
The three-member founding team at OnTime Cleaning Services consists of Tom, who
has 14 years of operations experience, Billy, an accountant with 2 years of experience
and Jane, a marketer with 22 years of work experience. The founding team at OnTime
Cleaning Services is ________. - Answer-heterogeneous
If the _____ of a firm have similar areas of expertise, it can be problematic. - Answer-
founders
Prior entrepreneurial experience, relevant industry experience, and ____ are the
attributes that strengthen the chances of a founder's success. - Answer-networking
WITH CORRECT ANSWERS (100%
VERIFIED ANSWERS)
Which of the following is NOT an advantage of a general partnership? - Answer-Liability
on the part of each general partner is unlimited.
Tom, Sam, and Pete run a business, the Argyle Food Center. Each has invested
$100,000 in the venture. If Tom and Sam have unlimited liability but Pete is liable only
up to $100,000, what is the organizational form of this venture? - Answer-limited
partnership
Which of the following is NOT an advantage of a C corporation? - Answer-Income is
taxed at the corporate and shareholder levels
Which of the following is NOT a standard that a business must meet to qualify for status
as a subchapter S corporation? - Answer-Its shareholders need not be U.S. citizens
The ability of a firm to earn a profit - Answer-profitability
The ability of a company to meet or satisfy its short-term obligations - Answer-liquidity
How productively a firm uses its assets relative to its revenue and profits - Answer-
efficiency
The strength and vigor of the firm's overall financial standing - Answer-stability
A written report that describes a firm's health from a quantitative perspective - Answer-
financial statement
estimates of a firm's future sales, income, expenses, and capital expenditures based on
its past performance, current situation and its future plans - Answer-forecasts
itemized forecasts of a firm's income, expenses and capital requirements - Answer-
budgets
Securities and Exchange Commission - Answer-SEC
statements that reflect past performance -- prepared on a quarterly and annual basis
(required by the SEC) - Answer-historical financial statements
, projections for expected performance in future periods -- forecasts for 2-3 years into the
future (not required by the SEC) - Answer-pro forma financial statements
Reflects the results of a firm's operations over a specified period of time - Answer-
income statement
A snapshot of a company's assets, its liabilities, and owners' equity - Answer-balance
sheet
the changes in a firm's cash position for a specified period of time and details why the
changes occurred - Answer-statement of cash flows
Predictions of a firm's future sales, expenses, income, and capital expenditures -
Answer-forecast
a method for expressing each expense item as a percentage of sales - Answer-percent-
of-sales
The group of people who move a new venture from an idea to a fully functioning firm -
Answer-a new-venture team
Members with diverse abilities and experiences - Answer-heterogenous founding team
members who are very similar to one another - Answer-homogenous founding team
______ refers to the fact that companies often falter because the people who start them
aren't able to adjust quickly enough to their new roles and because the firm lacks a
"track record" with outside buyers and suppliers. - Answer-liability of newness
Various people or groups form part of a
new-venture
team; however, _____ are(is) not one of them. - Answer-suppliers
The three-member founding team at OnTime Cleaning Services consists of Tom, who
has 14 years of operations experience, Billy, an accountant with 2 years of experience
and Jane, a marketer with 22 years of work experience. The founding team at OnTime
Cleaning Services is ________. - Answer-heterogeneous
If the _____ of a firm have similar areas of expertise, it can be problematic. - Answer-
founders
Prior entrepreneurial experience, relevant industry experience, and ____ are the
attributes that strengthen the chances of a founder's success. - Answer-networking
