MGMT 3500 CHAPTERS 8-10
CORRECT 100%
The measure at which your cash balance is going down while paying bills and
waiting for profitability is called the _______ . - ANSWERburn rate
Expectations of lenders include ______ . - ANSWERAll of these
Small Business Development Centers (SBDCs) ______ . - ANSWERprovide small
business assistance in planning, marketing and finance.
A vendor statement form ______ . - ANSWERAll of these
Venture capital firms ______ . - ANSWERpurchase equity (ownership) in a business.
Individuals who network together to pool small sums of money to fund growing
ventures are engaging in ______ . - ANSWERcrowdfunding
Most successful entrepreneurs found that starting their business _______ . -
ANSWERTook more time and cost more than they anticipated
The most important thing for a new business to do is _______ . - ANSWERConserve
cash
Pricing your product too low _______ . - ANSWERMay actually keep customers from
purchasing your product
When pricing your product or service _______ . - ANSWERAll of these
Price skimming is _______ . - ANSWERPricing products high to appeal to customers
who want to buy the newest items
When estimating sales for the first year of a new business, it is important to _______
. - ANSWERDo market research and analysis
An income statement tells you when you're going to _______ . - ANSWERMake a
profit on paper
Cash flow projections _______ . - ANSWERAll of these
Which of the following statements is true? - ANSWERWorking capital is essential for
survival
A balance sheet ________ - ANSWERShows what your business owes and owns
, A break-even analysis ________ - ANSWERTells you when you will start making
money
Accounting software ________ - ANSWERShould be used from the day you start
your business
The importance of financial ratios is ________ - ANSWERthey help you analyze how
your venture compares with other businesses in your industry. Lenders use ratios as
measuring devices to determine the risks associated with lending
Which of the following statements is true? - ANSWERBootstrapping is using one's
own resources to support business
Which of the following statements is false? - ANSWEREntrepreneurs should avoid
financial advice as it often does not apply to specialty businesses.
Which of these statements is NOT true about cost-plus pricing? - ANSWERCost-plus
pricing always reflects what the competition is doing.
Which of these statements is NOT true about competition based pricing? -
ANSWERCompetition pricing creates a level playing field for large and small
competitors.
Which of these statements is NOT true about consumer based pricing? -
ANSWERConsumer based pricing creates a fair environment where all customers
pay the same price for a product or service.
Selling your product or service at a rate that is double its wholesale price is called
________. - ANSWERKeystone pricing.
Most start-up companies today are funded by ______ . - ANSWERthe entrepreneur's
own money
Your textbook talked about the "four C's" of credit. Which of these is NOT one of the
four C's? - ANSWERCost
When exploring the bottom line for starting your business, you should consider
______ . - ANSWERAll of these
When selecting a credit card, you should consider all of the following except
______ . - ANSWERLocation of the bank
If a friend or family member co-signs a loan for you, ______ . - ANSWERTheir
remaining perrsonal borrowing capacity will be decreased.
To alleviate problems when borrowing from family and friends ______ . -
ANSWERput everything in writing.
Bankers ______ . - ANSWERAll of these
CORRECT 100%
The measure at which your cash balance is going down while paying bills and
waiting for profitability is called the _______ . - ANSWERburn rate
Expectations of lenders include ______ . - ANSWERAll of these
Small Business Development Centers (SBDCs) ______ . - ANSWERprovide small
business assistance in planning, marketing and finance.
A vendor statement form ______ . - ANSWERAll of these
Venture capital firms ______ . - ANSWERpurchase equity (ownership) in a business.
Individuals who network together to pool small sums of money to fund growing
ventures are engaging in ______ . - ANSWERcrowdfunding
Most successful entrepreneurs found that starting their business _______ . -
ANSWERTook more time and cost more than they anticipated
The most important thing for a new business to do is _______ . - ANSWERConserve
cash
Pricing your product too low _______ . - ANSWERMay actually keep customers from
purchasing your product
When pricing your product or service _______ . - ANSWERAll of these
Price skimming is _______ . - ANSWERPricing products high to appeal to customers
who want to buy the newest items
When estimating sales for the first year of a new business, it is important to _______
. - ANSWERDo market research and analysis
An income statement tells you when you're going to _______ . - ANSWERMake a
profit on paper
Cash flow projections _______ . - ANSWERAll of these
Which of the following statements is true? - ANSWERWorking capital is essential for
survival
A balance sheet ________ - ANSWERShows what your business owes and owns
, A break-even analysis ________ - ANSWERTells you when you will start making
money
Accounting software ________ - ANSWERShould be used from the day you start
your business
The importance of financial ratios is ________ - ANSWERthey help you analyze how
your venture compares with other businesses in your industry. Lenders use ratios as
measuring devices to determine the risks associated with lending
Which of the following statements is true? - ANSWERBootstrapping is using one's
own resources to support business
Which of the following statements is false? - ANSWEREntrepreneurs should avoid
financial advice as it often does not apply to specialty businesses.
Which of these statements is NOT true about cost-plus pricing? - ANSWERCost-plus
pricing always reflects what the competition is doing.
Which of these statements is NOT true about competition based pricing? -
ANSWERCompetition pricing creates a level playing field for large and small
competitors.
Which of these statements is NOT true about consumer based pricing? -
ANSWERConsumer based pricing creates a fair environment where all customers
pay the same price for a product or service.
Selling your product or service at a rate that is double its wholesale price is called
________. - ANSWERKeystone pricing.
Most start-up companies today are funded by ______ . - ANSWERthe entrepreneur's
own money
Your textbook talked about the "four C's" of credit. Which of these is NOT one of the
four C's? - ANSWERCost
When exploring the bottom line for starting your business, you should consider
______ . - ANSWERAll of these
When selecting a credit card, you should consider all of the following except
______ . - ANSWERLocation of the bank
If a friend or family member co-signs a loan for you, ______ . - ANSWERTheir
remaining perrsonal borrowing capacity will be decreased.
To alleviate problems when borrowing from family and friends ______ . -
ANSWERput everything in writing.
Bankers ______ . - ANSWERAll of these
