1. According to the guest lecture by Robert Rough, the adoption rate of a business would be impacted by many factors including:

How disruptive your business concept is

The relative cost of your product versus competitor’s products

He type of product or service that you are displacing

All of the above

2. When offering services to an entrepreneur who is interested in selling his/her company, some of the issues the Transition Companies typically encounter include:

Issues with the way expenses have been accounted for, such as repairs and maintenance accounts or travel and entertainment.

Omitting overhead allocations from COSB

Entrepreneurs expectation of sales price driven by retirement needs

All of the above                     

A and C only, but not B or D

3. Custom Surf specializes in unique surf boards and beach gear. Sales estimates (in millions) for the next four quarters are as follows: Q1 = 500; Q2 = 600; Q3 = 650; Q4 = 800. The beginning accounts receivable balance = $250 and the accounts receivable period (also known as the sales to cash conversion period) is 30 days. Cash collections from receivables for next quarter (Q1) are expected to be:

$583      

$417

$333

$500

4. If there is a 40% chance that market growth will be 15% next year, a 40% chance market growth will be 10%, and a 20% chance market growth will be 5%, the weighted average expected market growth would be __________.

9%

10%

11%               

12%

13%