Entrepreneurship

Private investors usually avoid retail businesses because such enterprises have...
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Terms in this set (24)
Private investors usually avoid retail businesses because such enterprises have...
A high failure rate
Sources of debt are far more numerous than sources of...
Owner's equity
Most entrepreneurs get their businesses off the ground by operating as frugally as possible...
Bootstrapping
T or F Bootstrapping techniques suggest that you should buy instead of lease and hire employees to the work for you.
F
T or F Venture capitalists generally want annual returns in the 10%-20% range
F (60%-70%)
T or F Start-up costs are those costs that you incur before you actually start the business
T
What is an agreement by a bank to lend money?
Line of credit
Name one type of equity source of funding
Personal savings, angels, partnership
A financial statement that tells what a business is worth at any given time is called a(n)...
Balance sheet
Net income is on which financial statement
Income statement
Owner's Equity is on which financial statementBalance sheetHow do you calculate the current ratio?CA/CL (current assets - current liabilities)Private Investors that are more sophisticated are calledAngelsAs an entrepreneur I may decide to trade cash for a portion of ownership in my business. This type of source is called?Equity SourceHow do you calculate return on equity?NI/OEAssets - Liabilities =Working CapitalT or F if my expenses are more than my income I will have a net lossTDo I want my operating ratio to be higher or lower than industry averages?LowerDo I want my net profit on sales to be higher or lower than industry averages?HigherIndividuals or firms that invest capital professionally are called?Venture capitalThe goal of the venture capitalist is to achieve capital gain through _______ and then cash outInvestmentName one start up cost that you need to include on your start-up budgetRentInventory and accounts receivables will be found on which financial statement?Balance sheetThe number one source of equity sources is?Personal Savings