Entrepreneurial Finance 6th Edition by J. Chris Leach test bank

planning

funding

operations

valuation

a  and d above

all of the above

 
e.      30.  The first three stages of a successful venture’s life cycle occur in the following order:
a.   development, rapid growth, survival
b.   startup, development, rapid growth
c.   startup, survival, rapid growth
d.   survival, rapid growth, early-maturity
e.   development, startup, survival
 
b.      31.  The last stage in a successful venture’s life cycle is called the:
          a.   rapid growth stage
          b.   early-maturity stage
          c.   development stage
          d.   survival stage
          e.   startup stage
 
c.      32.  The type of financing that occurs during the survival stage of a venture’s life cycle is typically referred to as the:
a.   seed financing
b.   startup financing
c.   first round financing
d.   second round financing
           e.   mezzanine financing
 
e.      33.  Which one of the following would not be considered a type of venture financing?

1. seed financing
2. startup financing
3. mezzanine financing
4. liquidity-stage financing
5. seasoned financing

 
b.      34.  One study of successful entrepreneurs indicated that a majority felt that the most important factor in the long-term success of their ventures was:
a.   being greedy
         b.   having high ethical standards
         c.   working hard
d.   taking frequent vacations
 
a.      35.  Financial markets where customized contracts or securities are negotiated, created, and held with restrictions on how they can be transferred are called:

1. private financial markets
2. public financial markets
3. domestic financial markets
4. international financial markets
5. all of the above

 
a.      36.  The time value of money concept is associated with which one of the following principles of entrepreneurial finance:

1. real, human, and financial capital must be rented from owners
2. risk and expected reward go hand in hand
3. while accounting is the language of business, cash is the currency
4. it is dangerous to assume that people act against their own self-interests

 
d.      37.  The goal of the entrepreneurial process is to:
       a.   develop opportunities
       b.   gather resources
       c.   manage and build operations
       d.   create value
 
   c.      38.  Which of the following is not considered to be a mega-trend in this textbook?
            a.   societal, demographic, and technological changes
       b.   crises and bubbles
       c.   fads 
       d.   emerging economies and global changes
 
a.      39.  The “sharing economy” is a/an:
            a.    developing societal megatrend
            b.    fad
            c.    exchange of food at local restaurants
            d.    demographic bubble
 
b.      40.  An innovation that creates a new market or network that displaces an existing market or network is called a: