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uring the a Firms typically begin to cover all expenses with internally-generate

ID: 2802918 • Letter: U

Question

uring the a Firms typically begin to cover all expenses with internally-generated funds duni During the startup stage, revenues grow much more rapidly than cash ex None of the above survival stage e. 7 ASWOT analysis focuses on strengths (9), wories (W, opportunities (O), and treats (T a. True False 8) The first component of a sound business model is the need to generate revenues. a) True b. False E ST VA9) model? Which one of the following components is not a standard component of a sound business a produce low-cost products b. generate revenues make profits dproduce free cash flows 10) Effective entrepreneurial management teams should include all of the following except? a provide expertise in the areas of marketing, finance, and operations b. have successful experience in the venture's industry and markets c/ work collaboratively with each other d. share the entrepreneurial spirit 7in-house accounting, auditing, and tax professionals 11) A VOS indicator stands for: a) venture opportunity screening indicator viable opportunity statement indicator venture only success indicator viable assessment screening indicator c. d. 12) Direct costs of producing a product or providing a service is called a. gross profit b. gross profit margin c. net profit d. net profit margin cost of goods sold d 3) Determine the cost of goods sold for a venture with the following financial information: revenues-$50,000; net profit margin:20% gross profit margin 70% a. $40,000 b. $35,000 $15,000 2

Explanation / Answer

13) COGS = Revenues x (1 - Gross Margin) = 50,000 x (1 - 70%) = 15,000

12) Cost of goods sold is direct costs of producing a product or service.

11) VOS - Venture Opportunity Screening indicator

10) E is correct. Audit and taxation are typically not an area of core competence for new ventures

9) A is correct. All the others are important components of business models.

8) True.

7) False. W - Weakness