ENTR5500 – FUNDAMENTALS EXAM
QUESTIONS AND ANSWERS. VERIFIED
2026.
Articles of Organization - ANS Documentation filed with the Secretary of State which acts as a
charter to document the establishment and existence of a limited liability company (LLC)
Assets - ANS All financial resources that a corporation owns, including material goods,
equipment, intellectual property (such as patents or copyrights), investments, cash, etc.
Balance sheet - ANS A condensed financial statement showing the nature and amount of a
company's assets, liabilities, and capital (equity) on a given date
B2B - ANS Business to business; a company which sells a product or service to other
businesses
B2C - ANS Business to consumer; a company which sells a product or service directly to
individual consumers
Board of directors - ANS A group of people elected by the company's shareholders that
makes decisions on major company issues, including hiring/firing the Chief Executive Officer
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
, Bridge round - ANS A round of funding that comes between your seed round and your full-
blown Series A round, used to extend your runway as you prepare for your Series A
Bootstrapping - ANS Funding a company only by reinvesting initial profits; from 'pulling
yourself up by your own bootstraps'
Burn rate - ANS The rate at which a company expends net cash over a certain period, usually
a month
Business plan - ANS A document that entrepreneurs use in detailing their business concept as
well as their company's overall strategic and financial objectives
Business model - ANS A set of assumptions and hypotheses for the successful operation of a
business, including all activities associated with making and selling something
Business Model Canvas - ANS An entrepreneurial tool that enables entrepreneurs to test
hypotheses as they design, develop, articulate, challenge, invent, and pivot their strategic
business model
Bylaws - ANS Written governing agreements established for the purpose of defining how
corporations will operate and be managed
Cash flow - ANS The incomings and outgoings of cash, representing the operating activities of
an organization
Capital - ANS Financial capital refers to the money exchanged between entrepreneurs and
investors during a business deal
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
QUESTIONS AND ANSWERS. VERIFIED
2026.
Articles of Organization - ANS Documentation filed with the Secretary of State which acts as a
charter to document the establishment and existence of a limited liability company (LLC)
Assets - ANS All financial resources that a corporation owns, including material goods,
equipment, intellectual property (such as patents or copyrights), investments, cash, etc.
Balance sheet - ANS A condensed financial statement showing the nature and amount of a
company's assets, liabilities, and capital (equity) on a given date
B2B - ANS Business to business; a company which sells a product or service to other
businesses
B2C - ANS Business to consumer; a company which sells a product or service directly to
individual consumers
Board of directors - ANS A group of people elected by the company's shareholders that
makes decisions on major company issues, including hiring/firing the Chief Executive Officer
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
, Bridge round - ANS A round of funding that comes between your seed round and your full-
blown Series A round, used to extend your runway as you prepare for your Series A
Bootstrapping - ANS Funding a company only by reinvesting initial profits; from 'pulling
yourself up by your own bootstraps'
Burn rate - ANS The rate at which a company expends net cash over a certain period, usually
a month
Business plan - ANS A document that entrepreneurs use in detailing their business concept as
well as their company's overall strategic and financial objectives
Business model - ANS A set of assumptions and hypotheses for the successful operation of a
business, including all activities associated with making and selling something
Business Model Canvas - ANS An entrepreneurial tool that enables entrepreneurs to test
hypotheses as they design, develop, articulate, challenge, invent, and pivot their strategic
business model
Bylaws - ANS Written governing agreements established for the purpose of defining how
corporations will operate and be managed
Cash flow - ANS The incomings and outgoings of cash, representing the operating activities of
an organization
Capital - ANS Financial capital refers to the money exchanged between entrepreneurs and
investors during a business deal
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
