Entrepreneurship test 3
_____ months of the year should be illustrated in the firm pro forma income statement
12
Design patent protection lasts for
14 years
Financial information pulls together
All of the information presented in the other segments of the business; marketing, distribution, manufacturing, and management
Equity financing is money invested in the venture with legal obligations to repay
No principle amount
Marketing planning is the process of
Projecting sales through history
The object of a patent is to provide the holder with
a temporary monopoly
The traditional accounting equation is
assets= liabilities + Owner's equity
The pro forma income statement is prepared before the
balance sheet
When starting a business, which sources of financing are most likely to be used?
banks, family
Break-even analysis is used to tell how many units must be sold in order to
break even at a particular selling price
Accounts receivable turnover measures the rate at which
collected on an annual basis
The most common source of debt financing is
commercial banks
_____ is most basic form of ownership in a corporation
common stock
At start up time, forms of financing includes
debt and equity
Venture capitalists are a valuable source of
equity funding for new ventures
_______ bank loans are made on a discounted value of the receivables pledged
factories
Chapter 7,9,11 are the most common forms of bankruptcy
false
It is usually more expensive to gather secondary data that primary data
false
Pricing procedures are the same for all types of ventures
false
Venture capital firms want to own control of the firms in which they invest
false
Venture capitalists, surprisingly, require little information before they make an investment
false
P2P lenders charge
fees for brokers and servicing loans and collect penalties for late payments
An infringement budget deals with
funds set aside for litigations
A trademark is a distinctive name, mark, or symbol that is
identified with a company's product and registered at the patent and trademark office
A fixed cost increase causes the break even point to
increase
A patent is an
intellectual property right
Anyone who violates an author's exclusive rights under a copyright is liable for
litigations
Many new ventures find that debt financing is
not a choice but a necessity
Financing includes all of the following
owners money, angels, and capitalists
______ are the most common methods used in capital budgeting
payback method, nvp method, IRR method
Effective marketing is based on three key elements
philosophy, market segments, costumer behavior
Private placement is a method of raising capital through
private placement of securities
What are forms of pro forma statements
pro forma income statement and balance sheet
The 4ps of marketing include
product, promotion, price, place
Chatper 13 bankruptcy involves
restricting debt
The first step in creating an operating budget is
sales forecast
What is true about traditional marketing
seeks to control the content sent by the audience
Three primary legal forms of organization are the
sole proprietorship, partnership, and corporation
Gross margin measures profitability at the gross profit level: how does this affect dollars of sales
the number of dollars of gross margin produced for every $1 of sales
Patents eventually expire
true
Skimming is setting prices at
high to maximize profits
A copyright provides exclusive rights to creative individuals for the protection of
their literary or artistic production
Public offering is a term used to refer to corporations
raising capital through the sale of securities on the public market
The first step in marketing research is to
gather data
Capital budgeting is used to help the entrepreneur plan for
capital expenditures
It is typical for a firm to prepare an operating budget but not a
cash budget
The 4cs of marketing include
cocreated, communities, customizable, Choice
In the marketing shift from the 4ps to the 4cs, price shifts to ______ and promotion shifts to ________
customizable, communities
Venture capitalists need only basic summary information before they make funding decisions.
false
Other sources of debt financing include
manufacturing, suppliers, peer to peer trade credit
Control versus communication is an important distinction between
traditions vs social media marketing
Entrepreneurs should be knowledgeable about certain legal concepts that affect their business venture
true
A variable cost goes up or down with increased production
up
What of the is not a question commonly asked by banks of entrepreneurs
what interest rate would you prefer?