Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

College > ENTR Midterm > Flashcards

ENTR Midterm Flashcards

1
Q

Avg Propensity to consume

A

Percentage of each dollar of income, on average, that a person spends for current needs rather than saving

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Standard of living

A

Neccessities, comforts, and luxuries enjoyed or desired by an individual of family

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Tangible asset

A

Physical assets such as real estate and automobiles that can be held for either consumption or investment purposes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Prosperity to consume formula

A

Consumption/ Income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

T/F: A personal balance sheet shows financial condition at a certain date

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

• Actual income statement vs budget

What time periods do they look at?

A

Income statement: over time

Budget: forward looking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Net Worth formula

A

Total Assets- Total liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

investment asset

A

Assets such as stocks, bonds, real estate that are acquired in order to earn a return than provide a service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What percentage of american households prepare a budget

A

30-40%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Do you record the value of the asset you buy the same on a balance sheet if you bought it on cash or credit

A

ya

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What traits do a successful entrepreneur exhibit

A
  1. Sees and seizes a commercial opportunity
  2. Tends to be doggedly optimistic (perhaps even to a fault)
  3. Plans to obtain the physical, financial, and human resources needed for the venture to succeed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

• Percentage of US Business that cease operations withing how many years

A

“Small Business Facts”: 1/3 gone in 2 years; 1/2 gone in five

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

E-Commerce

A

Use of electronic means to conduct business online

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Life cycle stages of a company

A
  1. Development
  2. Start up
  3. Survival
  4. Rapid-Growth
  5. Early Maturity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Development Stage:

A

period involving the progression from an idea to a promising business opportunity

Developing opportunities and seed financing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Startup Stage:

A

period when the venture is organized, developed, and an initial revenue model is put in place

Gathering resources and startup financing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Survival Stage:

A

period when revenues start to grow and help pay some, but typically not all, of the expenses

Gathering resources, managing and building operations and first-round financing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Rapid-Growth Stage:

A

period of very rapid revenue and cash flow growth

Managing and building operations and second-round mezzanine, & liquidity stage financing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Maturity Stage:

A

period when the growth of revenue and cash flow continues but at a much slower rate than in the rapid-growth stage

Managing and building operations and obtaining bank loans, issuing bonds, & issuing stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Seed Financing

A

Funds needed to determine whether an idea can be converted into a viable business oppurtunity

Mainly comes from financial bootstrapping (creative methods)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Second round financing

A

Financing for ventures in their rapid growth stage to support investments in working capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Mezzanine financing

A

Funds for plant expansion, marketing expenditures, working capital, and product or service improvements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Liquidity stage financing/ bridge financing

A

temporary financing needed to keep the venture afloat until the next offering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Seasoned Financing

A

the offering of securities by a firm that has previously offered the same or substantially similar securities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Secondary Stock offering

A

founder and venture investor shares sold to the public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Private Financial Markets

A

customized contracts bought and infrequently sold in inefficient private negotiations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Profit Formula

A

Profit= Revenues- Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Expected Outcome

A

(% * Number) + (% * Number)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Main goal of entr. process

A

Creating Value

30
Q

3 types of business oppurtunities

A

Salary replacement firms, lifestyle firm, entr. ventures. US

31
Q

Entrepreneurial ventures:

A

entrepreneurial firms that are flows- and performance-oriented as reflected in rapid value creation over time

32
Q

COMPONENTS OF A SOUND BUSINESS MODEL

A

Generate Revenues
Make Profits
Produce Free Cash Flows (You must generate cash inflows that exceed net working capital and capital expenditures)

33
Q

Cost of Goods Sold:

A

direct costs of producing a product or providing a service

34
Q

Gross Profit Margin:

A

gross profit divided by revenues

35
Q

Net Profit:

A

dollar profit left after all expenses, including financing costs and taxes, have been deducted from the firm’s revenues

36
Q

Net Profit Margin (NPM):

A

net profit divided by revenues

37
Q

asset turnover (so ATO =

A

Revenues/Total Assets)

38
Q

Proprietorship:

A

business venture owned by an individual who is personally liable for the venture’s liabilities

39
Q

Partnership (general)

A

two or more; moderate time and legal costs

40
Q

Limited Partnership

A

one or more general and one or more limited partners; moderate time and legal costs

41
Q

Corporation:

A

a legal entity that separates personal assets of the owners (shareholders) from the assets of the business

42
Q

S Corporation:

A

provides limited liability for shareholders; plus, corporate income is taxed like personal income to the shareholders

43
Q

Limited Liability:

A

creditors can seize the corporation’s assets but have no recourse against the shareholders’ personal assets

44
Q

Business Angels

A

wealthy individuals who invest money in fledgling ventures in exchange for the excitement of launching a business and a share in any financial rewards

45
Q

TRADEMARKS

A

Intellectual property rights that allow firms or others to differentiate their products and services through the use of unique “marks”

46
Q

COPYRIGHTS

A

Intellectual property rights to “writings” in written and electronically-stored formsProtects the “form of expression of an idea” and not just words themselves

47
Q

PATENT BASICS

A

Intellectual property rights granted for inventions that are “useful,” “novel,” and “non-obvious

48
Q

Which one over 10-15 years had the time period increase from 17-20 years

A

Patent

49
Q

Balance Sheet:

A

financial statement that provides a snapshot of a venture’s financial position as of a specific date

50
Q

Income Statement:

A

financial statement that reports the revenues generated and expenses incurred over an accounting period

51
Q

Operating Income or Earnings Before Interest and Taxes (EBIT):q

A

indicates a firm’s profit after operating expenses, excluding financing costs, have been deducted from net sales

52
Q

Statement of Cash Flows:

A

shows how cash, reflected in accrual accounting, flowed into and out of a firm during a specific period of operation

53
Q

Which of the following business orgs proviede s owners with limited investor liabilty income passed directly to the owners?`

A

Limited Liability Company (LLC)

54
Q

Current Assets:

A

cash & other assets that are expected to be converted into cash in less than one year (cash, recievables, inventory)

55
Q

Retained earnings

A

Earnings u keep from previous years on SE

56
Q

Marketable Securities

A

Short term, high quality, highly liquid investments that typically pay interest

57
Q

Inventory stages

A

Raw Materials, WIP, Finished product that they hope to sell

58
Q

Use of Cash

A

Amount of coin, currency, and checking account balances

59
Q

3 parts of cash flow

A

Operating, investing, financing

60
Q

CURRENT LIABILITIES

A

Payables, accrued wages, bank loans

61
Q

Investment banker and com. Bankers use ratios during which life cycle stage

A

Rapid Growth Stage

62
Q

Entr angels and captialist are important during which life cycle stage

A

Development

63
Q

Trend Analysis:

A

used to examine a venture’s performance over time

64
Q

Cross-sectional Analysis:

A

used to compare a venture’s performance against another firm at the same point in time

65
Q

Industry Comparables Analysis:

A

used to compare a venture’s performance against the average performance in the same industry

66
Q

Cash Build

A

Net sales – Change in receivables

67
Q

Cash Burn:

A

cash a venture expends on its operating and financing expenses and its investments in assets

68
Q

Net Cash Burn =

A

Cash burn – Cash build

69
Q

What net cash means

A

If cash flow from operating + cash flow from investing = positive, The venture is building cash

Negative amount = Net burn position

70
Q

Current ratio meaning

A

If >1, all current assets could pay all current liabilites

71
Q

Quick ratio meaning

A

Ratio <1, liquid assets wouldn’t be enough to pay off current liabilities

College (19 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions