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Question
Use of debt financing increases potential returns when a company is performing well, but it also increases the possibility of lower--even negative--returns if the company does not attain its goals in a given year.
a. True
b. False
Answer
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Related questions
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Williams Alternative Power, Inc. a company developing solar panels, is applying for a loan. The research the company has done for the manufacturing process would be a(n) _____ asset for the loan evaluation.
a. collateral
b. intangible
c. revolving
d. tangible
Q:
When a stock sale is restricted to private placement, an entrepreneur can avoid many of the demanding requirements of the securities laws.
a. True
b. False
Q:
Floyds income statement showed for the current year his company had an operating income of $45,000 and his balance sheet showed total assets of $300,000. His return on assets is _________ percent.
a. 30
b. 15
c. 12
d. 6
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Qualified small businesses that cannot obtain business loans through normal lending channels can get loans directly from the SBA through its 7(a) Loan Guaranty Program.
a. True
b. False
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Making funds available to cover losses that cannot be eliminated by risk control
Q:
Coverage that designates part of a firms earnings as a cushion against possible future losses
Q:
Juans belief that all low calorie sodas taste awful is an example of
a. cognitive dissonance.
b. the elimination of an item in an evoked set.
c. perceptual categorization.
d. unilateral indifference.
Q:
Why would a small business conduct less marketing research than a larger, established firm?
a. The entrepreneur can rely on intuition and observations. b. Marketing research is expensive.
c. Marketing research is not necessary for the start-up business. d. Data is not generally available for new business ideas.
Q:
In order to be appropriately considered a market, a group of customers or potential customers must have
a. purchasing power.
b. market power.
c. satisfied needs.
d. correlated needs.
Q:
Spira Footwear, Inc. produces running and walking shoes with a patented technology. Therefore the companys profile should concentrate the most on
a. the features the shoes offer the customer.
b. the uniqueness of the product.
c. the benefits to the customers.
d. All of the above are equally important.
Q:
A buildup process requires a small business to identify all potential buyers in a target market's submarkets and then combine these estimates to determine the calculated demand.
a. True
b. False
Q:
Small business owners can now buy inexpensive personal computer software that can perform statistical calculations and generate report-quality graphics.
a. True
b. False
Q:
A market is best defined as a geographical area that is of commercial interest to the entrepreneur.
a. True
b. False
Q:
Personal interview surveys are attractive as a marketing research method because these are inexpensive to conduct.
a. True
b. False
Q:
It is best to write a marketing plan before collecting marketing research data.
a. True
b. False
Q:
The marketing strategy section provides the most detailed information in a formal marketing plan.
a. True
b. False
Q:
Define the term market and explain the key ingredients of that definition.
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Melinda, an auto insurance agent, would like to forecast the number of 16-year-olds in her county who will be eligible to apply for drivers licenses next year. Identify three potential sources of information and discuss the advantages and disadvantages of each.
Q:
Which emerging model of e-commerce is used to generate significant amounts of advertising revenue?
a. eCRM
b. Disintermediation
c. Blogging
d. Auction Site
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An important advantage an entrepreneur gains by leasing rather than buying a facility is
a. receipt of an investment tax credit.
b. a decrease in investment risk.
c. a decrease in the amount of promotion required.
d. a customized layout.
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Rod is starting a new business as a drystone mason where he builds and repairs rock walls that do not have any mortar. He has completed national certification and will be working most jobs by himself. What issues should he consider in choosing the legal form? Based on this information, what legal form would you recommend for him to choose?
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In what situations would it be best for a company to be formed as a C corporation as opposed to a limited liability company?
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Explain the importance of social capital to a small business owner. How does this concept relate to reciprocation?
Q:
What are the qualifications of partners?
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Liability on the part of an owner that extends beyond the owners investment in the business
Q:
Martina invested her savings into her business when she started it. Later she added more capital and she has kept some of her profits. Together these are known as:
a. debt capital.
b. accrued expenses.
c. owners' long-term debt.
d. owners' equity.
Q:
Bernard has just learned that on the balance sheet, the assets must equal the ___________ plus the _______________.
a. money borrowed from others, money invested by the owners
b. accounts receivable, accounts payable
c. accumulated depreciation, asset value
d. net profit, retained earnings
Q:
In order to derive a cash flow statement, the owner must add back the _____ to the income statement.
a. depreciation expense
b. increase in accounts receivable
c. increases in inventory
d. decrease in accounts payable
Q:
For investment purposes, Wilma needs a snapshot of the firms financial position at a specific point in time. She should look at the
a. marketing plan.
b. statement of cash flows.
c. balance sheet.
d. income statement.
Q:
The debts that Rhondas company will repay within the next ______________ are considered to be current debt.
a. 2 years
b. 6 months
c. 1 quarter
d. 12 months