2024 – Lesson 4 Exam Question 1 2 5 2 5 points A partnership is

      

Lesson 4 Exam

   

Question 1

2.5 / 2.5 points

A ________ partnership is a modified form of a general partnership.

Question options:

  

   

a) 

restricted

 

   

b) 

limited

 

   

c) 

partial

 

   

d) 

constrained

 

Question 2

2.5 / 2.5 points

       

Match the financial objective with its correct definition.

Question options:

  

   

a) 

stability – the overall health     of the financial structure of the firm, particularly as it relates to its     debt-to-equity ratio

 

   

b) 

profitability – how productively     a firm utilizes its assets

 

   

c) 

liquidity – a company’s ability     to make a profit

 

   

d) 

efficiency – a company’s ability     to meet its short-term obligations

 

Question 3

2.5 / 2.5 points

       

Which of the following is NOT an advantage of a general partnership?

Question options:

  

   

a) 

Business losses can be deducted     against the partners’ other sources of income.

 

   

b) 

The skills and abilities of more     than one individual are available to the firm.

 

   

c) 

The liquidity of each partner’s     investment is low.

 

   

d) 

Creating one is relatively easy     and inexpensive compared to a C corporation or limited liability company.

 

Question 4

2.5 / 2.5 points

       

________ are itemized forecasts of a company’s income, expenses, and capital needs and are also an important tool for financial planning and control.

Question options:

  

   

a) 

Profitability statements

 

   

b) 

Financial statements

 

   

c) 

Owners’ equity statements

 

   

d) 

Budgets

 

Question 5

2.5 / 2.5 points

       

Most businesses that plan to use a fictitious name, which is any name other than the business owner’s name, need a(n) ________ permit.

Question options:

  

   

a) 

unreal business name

 

   

b) 

fabricated business name

 

   

c) 

invented business name

 

   

d) 

fictitious business name

 

Question 6

2.5 / 2.5 points

       

In the context of a firm’s statement of cash flows, ________ activities include the purchase, sale, or investment in fixed assets (e.g., real estate, equipment, and buildings).

Question options:

  

   

a) 

operating

 

   

b) 

investing

 

   

c) 

capital

 

   

d) 

financing

 

Question 7

2.5 / 2.5 points

       

In the context of a firm’s statement of cash flows, ________ activities include cash raised during the period by borrowing money or selling stock and/or cash used during the period by paying dividends, buying back outstanding stock, or buying back outstanding bonds.

Question options:

  

   

a) 

investing

 

   

b) 

financing

 

   

c) 

operating

 

   

d) 

liquidity

 

Question 8

2.5 / 2.5 points

       

On a firm’s income statement, net sales consists of:

Question options:

  

   

a) 

operating expenses minus cost of     sales.

 

   

b) 

total sales minus allowances for     returned goods and discounts.

 

   

c) 

cost of sales minus allowances     for returned goods and discounts.

 

   

d) 

cost of sales minus operating     expenses.

 

Question 9

2.5 / 2.5 points

       

Which of the following is the most important thing that an entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization?

Question options:

  

   

a) 

Implement an ethics training     program

 

   

b) 

Write a mission statement

 

   

c) 

Lead by example

 

   

d) 

Hire an ethics compliance     officer

 

Question 10

2.5 / 2.5 points

       

A company’s ability to productively utilize its assets relative to its revenue and its profits is referred to as:

Question options:

  

   

a) 

efficiency.

 

   

b) 

effectiveness.

 

   

c) 

stability.

 

   

d) 

liquidity.

 

Question 11

2.5 / 2.5 points

       

Which financial statement records all of a firm’s revenues and expenses for a given period and shows whether the firm is making a profit or experiencing a loss?

Question options:

  

   

a) 

Balance sheet

 

   

b) 

Owner’s equity statement

 

   

c) 

Statement of cash flows

 

   

d) 

Income statement

 

Question 12

2.5 / 2.5 points

       

________ financial statements are projections for future periods based on forecasts and are typically completed for two to three years into the future.

Question options:

  

   

a) 

Chronological

 

   

b) 

Pro forma

 

   

c) 

Ad-hoc

 

   

d) 

Concurrent

 

Question 13

2.5 / 2.5 points

       

Partnerships are organized as either ________ or ________ partnerships.

Question options:

  

   

a) 

specific; general

 

   

b) 

narrow; broad

 

   

c) 

inward; outward

 

   

d) 

general; limited

 

Question 14

2.5 / 2.5 points

       

A ________ sets forth the rights and duties of the general and limited partners, along with the details of how the partnership will be managed and eventually dissolved.

Question options:

  

   

a) 

partnership accord

 

   

b) 

restricted partnership agreement

 

   

c) 

business partnership agreement

 

   

d) 

limited partnership agreement

 

Question 15

2.5 / 2.5 points

       

________ is the process in which an impartial third party helps those involved in a dispute reach an agreement.

Question options:

  

   

a) 

Conciliation

 

   

b) 

Reconciliation

 

   

c) 

Negotiation

 

   

d) 

Mediation

 

Question 16

2.5 / 2.5 points

       

A code of ________ is a formal statement of an organization’s values on certain ethical and social issues.

Question options:

  

   

a) 

conduct

 

   

b) 

behavior

 

   

c) 

performance

 

   

d) 

principles

 

Question 17

2.5 / 2.5 points

       

Money owed to a company by its customers is referred to as:

Question options:

  

   

a) 

accounts obtainable.

 

   

b) 

accounts payable.

 

   

c) 

accounts receivable.

 

   

d) 

inventory.

 

Question 18

2.5 / 2.5 points

       

________ financial statements reflect past performance and are usually prepared on a quarterly and annual basis.

Question options:

  

   

a) 

Chronological

 

   

b) 

Ad-hoc

 

   

c) 

Historical

 

   

d) 

Concurrent

 

Question 19

2.5 / 2.5 points

       

The four main financial objectives of a firm are:

Question options:

  

   

a) 

efficiency, effectiveness,     strength, and flexibility.

 

   

b) 

power, success, efficiency, and     effectiveness.

 

   

c) 

control, effectiveness,     liquidity, and power.

 

   

d) 

profitability, liquidity,     efficiency, and stability.

 

Question 20

2.5 / 2.5 points

       

________ is a company’s ability to meet its short-term financial obligations.

Question options:

  

   

a) 

Liquidity

 

   

b) 

Profitability

 

   

c) 

Effectiveness

 

   

d) 

Stability

 

Lesson 5 Exam

   

Question 21

2.5 / 2.5 points

Shelly Cook recently launched a social network for chefs. One thing Shelly is thinking about is creating is a panel of experts who can provide her ongoing direction and advice regarding the future of her business. Shelly is thinking about creating a(n) ________.

Question options:

  

   

a) 

analysis panel

 

   

b) 

discussion board

 

   

c) 

advisory board

 

   

d) 

suggestion panel

 

Question 22

2.5 / 2.5 points

       

Which of the following was NOT identified in the textbook as an attribute of an effective board member?

Question options:

  

   

a) 

Strong personal and professional     networks

 

   

b) 

Unknown in their field

 

   

c) 

Investment and/or operating     experience

 

   

d) 

Ability and willingness to     mentor the CEO and the top managers of the firm

 

Question 23

2.5 / 2.5 points

       

__________ provide entrepreneurs access to mentors, investors, subject matter experts (such as attorneys and accountants), and other entrepreneurs.

Question options:

  

   

a) 

Networking events

 

   

b) 

New venture teams

 

   

c) 

Start-up accelerators

 

   

d) 

Advisory boards

 

Question 24

2.5 / 2.5 points

       

A(n) ________ is a person who is in business for themselves, works on their own time with their own tools and equipment, and performs services for a number of different clients.

Question options:

  

   

a) 

employee

 

   

b) 

virtual assistant

 

   

c) 

intern

 

   

d) 

freelancer

 

Question 25

2.5 / 2.5 points

       

The members of homogeneous teams are:

Question options:

  

   

a) 

diverse in terms of their     abilities and experiences.

 

   

b) 

diverse in terms of their     abilities, but very similar in terms of their experiences.

 

   

c) 

similar in terms of their     abilities and experiences.

 

   

d) 

diverse in terms of their     experiences, but very similar in terms of their abilities.

 

Question 26

2.5 / 2.5 points

       

Which of the following statements is FALSE regarding founding teams?

Question options:

  

   

a) 

The members of heterogeneous     teams are diverse in terms of their abilities and experiences.

 

   

b) 

Teams that are working together     for the first time have an advantage over teams that have worked together     before.

 

   

c) 

The psychological support that     cofounders of a new business can offer one another is an important element     of a firm’s success.

 

   

d) 

The members of homogeneous teams     are very similar in terms of their abilities and experiences.

 

Question 27

2.5 / 2.5 points

       

If the members of a team are _________, they are likely to have different points of view about technology, hiring decisions, competitive tactics, and other important activities.

Question options:

  

   

a) 

highly educated

 

   

b) 

investors

 

   

c) 

homogeneous

 

   

d) 

heterogeneous

 

Question 28

2.5 / 2.5 points

       

Kelly Andersen founded a technology consulting firm several years ago. Her firm has grown rapidly and is financially successful. One thing that Kelly attributes her success to is that early on she assembled a panel of experts who provided her ongoing direction and advice about her business. What Kelly created is called a(n):

Question options:

  

   

a) 

consultation panel.

 

   

b) 

suggestion panel.

 

   

c) 

idea board.

 

   

d) 

advisory board.

 

Question 29

2.5 / 2.5 points

       

__________ is a nonprofit organization that provides free consulting services to small businesses.

Question options:

  

   

a) 

The Small Business Development     Center

 

   

b) 

The Small Business Association

 

   

c) 

StartupNation

 

   

d) 

The Service Corps of Retired Executives

 

Question 30

2.5 / 2.5 points

       

Kathy Denver is preparing to launch a home security firm. The team of people that will launch Kathy’s firm are as follows: Kathy (CEO), Trevor (VP-Finance), Shelia (VP-Sales), a four-person Board of Directors, a five-person Board of Advisors, and Kathy’s primary investor, who will assume an advisory role. The group of people that will launch Kathy’s firm is called its:

Question options:

  

   

a) 

startup squad.

 

   

b) 

new venture panel.

 

   

c) 

new venture team.

 

   

d) 

startup cadre.

 

Question 31

2.5 / 2.5 points

       

A(n) ________ is a panel of experts who are asked by a firm’s managers to provide counsel and advice on an ongoing basis.

Question options:

  

   

a) 

consultation board

 

   

b) 

idea panel

 

   

c) 

counseling panel

 

   

d) 

advisory board

 

Question 32

2.5 / 2.5 points

       

The fact that companies often falter because the people who start the firms can’t adjust quickly enough to their new roles and because the firm lacks a “track record” with outside buyers and sellers, is referred to as the:

Question options:

  

   

a) 

liability of preparedness.

 

   

b) 

liability of newness.

 

   

c) 

burden of novelty.

 

   

d) 

burden of freshness.

 

Question 33

2.5 / 2.5 points

       

The Partnering for Success feature in Chapter 9 focuses on a technique that entrepreneurs use to overcome the liabilities of newness. The suggestion made by the feature is to overcome the liabilities of newness by considering:

Question options:

  

   

a) 

interviewing a minimum of 20     startup founders to get a sense of what made them successful.

 

   

b) 

working in the new product     development or corporate innovation division of a major corporation.

 

   

c) 

working for a startup for a     minimum of two years before starting one.

 

   

d) 

joining a startup accelerator.

 

Question 34

2.5 / 2.5 points

       

Liz Zackery just launched a firm in the sporting goods industry. On the day the company was launched, Liz issued a press release, indicating that the vice president of New Balance, a highly respected athletic shoe and sports apparel company, had agreed to serve on her board of directors. Liz knows that such a high-quality appointment will send an important message to her potential clientele. This phenomenon is referred to as:

Question options:

  

   

a) 

championing.

 

   

b) 

signaling.

 

   

c) 

profiling.

 

   

d) 

indicating.

 

Question 35

2.5 / 2.5 points

       

In the context of boards of directors, a(n) ________ director is someone who is not employed by the firm.

Question options:

  

   

a) 

outside

 

   

b) 

inside

 

   

c) 

external

 

   

d) 

impartial

 

Question 36

0 / 2.5 points

       

Which of the following statements about advisory boards is INCORRECT?

Question options:

  

   

a) 

If a firm has a board of     directors, it is not permitted to have an advisory board.

 

   

b) 

Many people are more willing to     serve on a company’s board of advisors than its board of directors because     it requires less time and there is no potential legal liability involved.

 

   

c) 

Most boards of advisers have     between 5 and 15 members.

 

   

d) 

A growing number of startups are     forming advisory boards.

 

Question 37

2.5 / 2.5 points

       

A skills profile is a chart that depicts the ________.

Question options:

  

   

a) 

preferable skills and abilities     of the members of a firm’s board of advisors

 

   

b) 

preferable skills and abilities     of the members of a firm’s board of directors

 

   

c) 

most important skills that are     needed in a business startup and where skills gaps exist

 

   

d) 

skills and abilities that will     be needed for a firm to maintain an aggressive growth strategy

 

Question 38

2.5 / 2.5 points

       

Calvin Tucker is in the process of launching an educational services firm. He plans to incorporate the firm. Because the firm will be incorporated, Calvin is legally required to have a:

Question options:

  

   

a) 

board of investors.

 

   

b) 

board of advisors.

 

   

c) 

customer advisory board.

 

   

d) 

board of directors.

 

Question 39

2.5 / 2.5 points

       

Unlike a __________, an advisory board possesses no legal responsibility for the firm and gives nonbinding advice.

Question options:

  

   

a) 

start-up team

 

   

b) 

new venture panel

 

   

c) 

board of directors

 

   

d) 

board of investors

 

Question 40

2.5 / 2.5 points

       

The process of building and maintaining relationships with people whose interests are similar or whose relationship could bring advantages to the firm is called:

Question options:

  

   

a) 

linking.

 

   

b) 

socializing.

 

   

c) 

networking.

 

   

d) 

associating.