Answer the following questions:-
1. If the company has sold shares only to angel investors and not to a VC firm, the entrepreneur must:
• Pay a dividend to the angel investors.
• Convert the investors' shares into debt.
• Buy back the angels' shares at the price that was paid originally.
• Plan a liquidity event to provide the investors with an acceptable return on their investment.
2. Which of the following is NOT a proper way to locate an appropriate investor?
• Look within the industry
• Use the internet
• Speak with other entrepreneurs
• Advertise in the newspaper
3. A copyright does not protect the following from unauthorized copying:
• books
• software
• chemical formulas
• drawings
4. Patents are granted by the government in order:
• To restrict imports.
• To encourage the sharing of knowledge.
• To help investors make money.
• To generate revenue for the patent office.
5. Which of the following factors are not important when designing a business model?
• Understanding customers' values
• Having Venture Capital Investment
• Analyzing current and potential customers
• Clearly identifying the markets that you will enter
6. A franchise agreement need not have the following conditions stated:
• Payments that must be made to the franchisor.
• The location where the franchisee may operate.
• Guidelines on using the franchisor's brand.
• The expiration date of the patent that is being franchised.
7. Limitations of franchise agreements include all of the following except:
• treatment of confidentiality
• general legal requirements
• non-compete stipulation
• legal advice
8. The three major sections of the Balance Sheet are the:
• revenues, expenses, and current assets.
• assets, liabilities, and equity.
• cash, fixed assets, and interest payments.
• cash flow, fixed assets and other assets, and debt structure.
9. Which of the following statements is more likely to be true?
• Not all business costs can be classified as variable costs or fixed costs; the terms vary with the unit produced or the service provided
• The higher the fixed costs, the easier it is to gain a high return on assets
• The higher the variable costs, the easier it is to achieve a high gross margin
• The higher the fixed costs, the easier it is to achieve a high gross margin
10. Which of the following is NOT one of the eleven categories of a standard budget?
• Net Income
• EBIT
• COH
• Operating Profit
11. An elevator pitch is typically:
• Less than 2 minutes long, highly targeted, and prepared.
• Unrehearsed and spontaneous.
• Longer than five minutes.
• The length of an elevator ride.
12. An investors' presentation must cover the following topics:
• Your personal financial status.
• The size of the market.
• Detailed 10-year financial predictions.
• The resumes of the people you intend to bring on board.