Quiz

Financial management deals with two things—managing a company's finances and:

__________ are an estimate of a firm's future income and expenses, based on its past performance, its current circumstances, and its future plans.

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

Amanda Still owns a seafood restaurant in Clearwater, Florida. She is currently owed $19,000 by a corporation that she catered a meeting for and $2,000 on an overdue account. Amanda has $21,000 in:

A financial statement is a(n):

In the context of a firm's statement of cash flows, __________ 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.

The statement of cash flows is divided into three separate activities:

Real estate, buildings, equipment and furniture are classified as __________ on a company's balance sheet.

A firm's profit margin, or return on sales, is computed by dividing:

A firm's __________ reflects the results of its operations over a specified period and shows whether it is making a profit or is experiencing a loss.

A __________ is the group of founders, key employees, and advisers that move a new venture from an idea to a fully functioning firm.

The members of heterogeneous teams are:

A(n) __________ is a chart that depicts the most important skills that are needed in a new venture and where skills gaps exist.

A board of directors is typically made up of both:

A board of directors has three formal responsibilities:

According to the textbook, although a board of directors has formal governance responsibilities, its most useful role is to:

Which of the following is incorrect regarding the typical role of consultants in business startups?

Amy Phillips founded a cosmetics firm several years ago. Her firm has grown rapidly and is financially successful. One thing that Amy 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 Amy created is called a(n):

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

The high failure rate among new ventures is due in part to the liability of newness, which refers to the fact that new companies often falter because: