EEE (Actual) Exam 2 Rated A+
____ is when the lender provides a business with a lump sum of money in exchange for
a share of future sales. - ANSWER-merchant cash advance
_____ firms are required by the Securities and Exchange Commission to prepare
financial statements and make them available to the public. - ANSWER-publicly traded
_____ is a balancing act. - ANSWER-raising money
_____ is a statistical technique used to find relationships between variables for the
purpose of predicting future values. - ANSWER-regression
______ are an important tool for financial planning and control. - ANSWER-budgets
______ is the practice of funding a project or new venture by raising monetary
contributions from a large number of people, typically via the internet. - ANSWER-
crowdfunding
______ is the term attached to the general philosophy of minimizing start-up expenses
by aggressively pursuing cost-cutting techniques and money-saving tactics. - ANSWER-
bootstrapping
_______ is a company's ability to meet its short-term financial obligations. - ANSWER-
liquidity
_______ is how productively a firm utilizes its assets relative to its revenues and its
profits. - ANSWER-efficiency
________ are itemized forecasts of a company's income, expenses, and capital needs.
- ANSWER-budgets
a ____ clause legally obligates departing founders to sell to the remaining founders their
interest in the firm if the remaining founders are interested. - ANSWER-buyback
a _____ is a written document that deals with issues such as how individual founders
will be compensated for the cash or the "sweat equity" they put into the firm. -
ANSWER-founders agreement
a ______ is a formal statement of an organizations values on certain ethical and social
issues. - ANSWER-code of conduct
a 2015 Wells Fargo/Gallup Small business index survey found that only ____ percent of
business owners have a formal business plan. - ANSWER-33
, a business plan is a written document that describes what a new business intends to
accomplish and ______ - ANSWER-how it intends to accomplish it
a buyback clause legally obligates departing founders to sell to the - ANSWER-
remaining founders
a clearly written business plan helps ______ operate in sync and move forward in a
consistent and purposeful manner. - ANSWER-a firms rank-and-file employees
a clearly written business plan is important for both the management team and ______ -
ANSWER-the rank and file employees
a company's burn rate is the rate at which it is spending its ______ until it reaches
profitability. - ANSWER-capitol
a companys ____ is the rate at which it is spending its capital until it reaches
profitability. - ANSWER-burn rate
a corporation is formed by filing - ANSWER-articles of incorporation
a feasibility study or an industry analysis is typically prepared by a(n) _____ consultant.
- ANSWER-generalist
a films pro forma financial statements are similar to its historic financial statements
except that ____. - ANSWER-they look forward rather than track the past.
a financial statement is a written report that ________ describes a firms financial health.
- ANSWER-quantitatively
a firms _____ is similar to its historical financial statements except that it looks -
ANSWER-pro forma
a firms _____ ratio equals its current assets divided by its current liabilities. - ANSWER-
current
a firms current assets are
$75,000 and its current liabilities are $63,000. Its working capital is ____. - ANSWER-
$12,000
a firms pro forma financials should be prepared ______. - ANSWER-in conjunction with
the firms overall planning activities
a lack of a track record with outside buyers and suppliers causes a start-up firm to suffer
from ______ - ANSWER-the liability of newness
____ is when the lender provides a business with a lump sum of money in exchange for
a share of future sales. - ANSWER-merchant cash advance
_____ firms are required by the Securities and Exchange Commission to prepare
financial statements and make them available to the public. - ANSWER-publicly traded
_____ is a balancing act. - ANSWER-raising money
_____ is a statistical technique used to find relationships between variables for the
purpose of predicting future values. - ANSWER-regression
______ are an important tool for financial planning and control. - ANSWER-budgets
______ is the practice of funding a project or new venture by raising monetary
contributions from a large number of people, typically via the internet. - ANSWER-
crowdfunding
______ is the term attached to the general philosophy of minimizing start-up expenses
by aggressively pursuing cost-cutting techniques and money-saving tactics. - ANSWER-
bootstrapping
_______ is a company's ability to meet its short-term financial obligations. - ANSWER-
liquidity
_______ is how productively a firm utilizes its assets relative to its revenues and its
profits. - ANSWER-efficiency
________ are itemized forecasts of a company's income, expenses, and capital needs.
- ANSWER-budgets
a ____ clause legally obligates departing founders to sell to the remaining founders their
interest in the firm if the remaining founders are interested. - ANSWER-buyback
a _____ is a written document that deals with issues such as how individual founders
will be compensated for the cash or the "sweat equity" they put into the firm. -
ANSWER-founders agreement
a ______ is a formal statement of an organizations values on certain ethical and social
issues. - ANSWER-code of conduct
a 2015 Wells Fargo/Gallup Small business index survey found that only ____ percent of
business owners have a formal business plan. - ANSWER-33
, a business plan is a written document that describes what a new business intends to
accomplish and ______ - ANSWER-how it intends to accomplish it
a buyback clause legally obligates departing founders to sell to the - ANSWER-
remaining founders
a clearly written business plan helps ______ operate in sync and move forward in a
consistent and purposeful manner. - ANSWER-a firms rank-and-file employees
a clearly written business plan is important for both the management team and ______ -
ANSWER-the rank and file employees
a company's burn rate is the rate at which it is spending its ______ until it reaches
profitability. - ANSWER-capitol
a companys ____ is the rate at which it is spending its capital until it reaches
profitability. - ANSWER-burn rate
a corporation is formed by filing - ANSWER-articles of incorporation
a feasibility study or an industry analysis is typically prepared by a(n) _____ consultant.
- ANSWER-generalist
a films pro forma financial statements are similar to its historic financial statements
except that ____. - ANSWER-they look forward rather than track the past.
a financial statement is a written report that ________ describes a firms financial health.
- ANSWER-quantitatively
a firms _____ is similar to its historical financial statements except that it looks -
ANSWER-pro forma
a firms _____ ratio equals its current assets divided by its current liabilities. - ANSWER-
current
a firms current assets are
$75,000 and its current liabilities are $63,000. Its working capital is ____. - ANSWER-
$12,000
a firms pro forma financials should be prepared ______. - ANSWER-in conjunction with
the firms overall planning activities
a lack of a track record with outside buyers and suppliers causes a start-up firm to suffer
from ______ - ANSWER-the liability of newness
