Final Exam

Question 0

Statement of Retained Earnings

Answer 0

A statement that tells how much money is retained and invested back into the company

Question 1

Income Statement

Answer 1

A statement that shows an increase or decrease in finances in a given period

Question 2

Balance Sheet

Answer 2

All assets, liabilities, and owner’s equity

Question 3

Cash Flow Statement

Answer 3

A statement that shows how much money came in, how much came out.

Question 4

New Venture Life Cycle (Milestones)

Answer 4

Idea–> Opportunity –> Develop–> Launch–> Grow–> Exit

Question 5

Business Opportunity Growth is Required to…

Answer 5

Capture Economies of Scale
Achieve market leadership
Maintain influence with suppliers
Accommodate growth of key customers
Attract, maintain talented employees
Execute scalable business model

Question 6

Challenges to achieving sustainable growth

Answer 6

Cash Flow Management
Price Stability
Quality Control
Capital Constraints

Question 7

Intellectual Property

Answer 7

Any intangible but valuable result of innovation

Question 8

Patents

Answer 8

(Type of Intellectual Property) Excludes others from using process, business method, design for 14-20 years.

Question 9

Trademarks

Answer 9

(Type of Intellectual Property) Words, symbols, identifiers which distinguishes offering from others; 10-yr renewable protection while [this] is in use.

Question 10

Copyright

Answer 10

(type of intellectual property) Protects tangible works of provable authorship for 70+ years

Question 11

Trade Secrets

Answer 11

(type of intellectual property) Information providing owner with competitive advantage in marketplace, governed by various state laws

Question 12

Sources of New Venture $

Answer 12

Personal $
Debt (counting on obligation)
Equity (exchanging ownership for cash)

Question 13

Reasons to consider for selecting legal structure of biz

Answer 13

Cost
Liabilities
Capital
Tax
Survivorship

Question 14

Financial Ratio Analysis

Answer 14

1. Profitability
2. Efficiency
3. Liquidity
4. Stability

Question 15

New Venture $ management: $ Objectives

Answer 15

Profitability
Liquidity
Effectiveness
S___________

Question 16

Business Model Canvas

Answer 16

Be familiar with the business model canvas.

Question 17

Barriers to Entry

Answer 17

1) Economies of Scale
2) Product Differentiation
3) Capital Requirements
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