FSE 2202 MIDTERM STUDY GUIDE EXAM QUESTIONS AND
ANSWERS WITH VERIFIED SOLUTIONS
Business plan a.k.a New Venture Plan
A written description of a new idea that projects marketing, operational, and financial
aspects of a proposed business
Entrepreneur
One who organizes, manages, and assumes the risk of a business firm or venture
Competition
The practice of trying to obtain something that is being sought by others under similar
circumstances at the same time
Debt Equity (Debt Capital, Borrowed Capital)
Any borrowed or loaned capital invested in the business that must be repaid to creditors
Borrowed equity
Borrowed capital invested in the business that must be repaid to creditors
Owners equity
The amount remaining after the value of all liabilities is subtracted from the value of all
assets
Borrowed capital
any borrowed or loaned capital invested in the business that must be repaid to creditors
Goodwill
, An intangible asset such as the name of a funeral home; also, an intangible asset which
enables a business to earn a profit in excess of the normal rate of profit earned by other
businesses of the same kind
Intangible assets
Those assets that cannot be touched or grasped (examples include patents, copyrights
and goodwill)
Tangible asset
A physical asset that possesses genuine value
Copyright
The registered right of a creator to reproduce, publish, and sell the work which is the
product of the intelligence and skill of that person
Venture capitalist
An investor or investment group that commits money to new business ventures
Business angels
A former entrepreneur or professional who provides starting or growth capital in
promising ventures, and helps with advice and contacts. Angel investors usually operate
alone (or in small groups) and play only an indirect role as advisors in the oeprations of
the investee firm
General manager
The person who is reponsible for running the day-to-day critical departments of an
organization. They establish procedures and processes to ensure their smooth
functioning of the business
INternal locus of control
ANSWERS WITH VERIFIED SOLUTIONS
Business plan a.k.a New Venture Plan
A written description of a new idea that projects marketing, operational, and financial
aspects of a proposed business
Entrepreneur
One who organizes, manages, and assumes the risk of a business firm or venture
Competition
The practice of trying to obtain something that is being sought by others under similar
circumstances at the same time
Debt Equity (Debt Capital, Borrowed Capital)
Any borrowed or loaned capital invested in the business that must be repaid to creditors
Borrowed equity
Borrowed capital invested in the business that must be repaid to creditors
Owners equity
The amount remaining after the value of all liabilities is subtracted from the value of all
assets
Borrowed capital
any borrowed or loaned capital invested in the business that must be repaid to creditors
Goodwill
, An intangible asset such as the name of a funeral home; also, an intangible asset which
enables a business to earn a profit in excess of the normal rate of profit earned by other
businesses of the same kind
Intangible assets
Those assets that cannot be touched or grasped (examples include patents, copyrights
and goodwill)
Tangible asset
A physical asset that possesses genuine value
Copyright
The registered right of a creator to reproduce, publish, and sell the work which is the
product of the intelligence and skill of that person
Venture capitalist
An investor or investment group that commits money to new business ventures
Business angels
A former entrepreneur or professional who provides starting or growth capital in
promising ventures, and helps with advice and contacts. Angel investors usually operate
alone (or in small groups) and play only an indirect role as advisors in the oeprations of
the investee firm
General manager
The person who is reponsible for running the day-to-day critical departments of an
organization. They establish procedures and processes to ensure their smooth
functioning of the business
INternal locus of control
