click below
click below
Normal Size Small Size show me how
Unit 8 Review
Entrepreneurship Unit 8: Funding and Business Operations
Term | Definition |
---|---|
Which funding source is characterized by individuals pooling their money together to invest in startups or small businesses? | Crowdfunding platforms |
Which type of funding source involves a group of high-net-worth individuals providing capital to startups in exchange for equity? | Angel investors |
True or False: Venture capital firms primarily invest in early-stage startups with high growth potential. | True |
Which funding source typically involves borrowing money from a financial institution and requires repayment with interest? | Bank loan |
Which funding source provides financial support to entrepreneurs without requiring repayment or giving up equity? | Government grants |
What is the main characteristic of debt financing as a funding source for small businesses? | Repayment of borrowed funds with interest |
Which of the following is an advantage of equity financing? | No interest payments or debt to repay |
True or False: Debt financing involves raising capital by selling ownership shares of a company to investors. | False |
Which statement accurately reflects the relationship between debt and equity financing? | Equity financing may dilute entrepreneurial control, while debt financing requires scheduled repayment. |
Which financing option allows the entrepreneur to maintain full control but comes with limited access to ready capital? | Personal savings |
Which business valuation method focuses on estimating a company's value based on its expected future cash flows? | Income approach |
Which business valuation method focuses on comparing the target company to similar businesses that have recently been sold? | Market approach |
Which professional is specialized in conducting detailed industry research, competitive analysis, and market forecasting to assist with advanced business decision-making? | Market research analyst |
Which professional is best suited to provide an unbiased assessment of a company's financial health, market position, and growth potential? | Financial advisor/analyst |
True or False: The asset approach values a business based on both its tangible assets, such as equipment, and its intangible assets, such as intellectual property. | True |
Which of these statements best describes the role of profit in a business? | Profit is the difference between total revenue and total costs. |
Assessing market trends to make strategic choices about resource allocation is an example of: | Forecasting sales |
Which of these statements is true about profit and business sustainability? | Profit is one of the factors contributing to business sustainability. |
True or False: Increasing revenue always leads to higher profits. | False |
What is the significance of profit in attracting investors to a business? | Profit indicates the financial health and potential returns of a business. |
What method of forecasting sales relies on historical sales data and assumes that future sales will follow a similar pattern? | Time series analysis |
Which forecasting technique utilizes mathematical models to analyze the relationship between sales and relevant independent variables? | Regression analysis |
True or False: Market research is a method of sales forecasting that takes into account recurring patterns and fluctuations within a specific time frame. | False |
A company wants to predict the sales of its products in different regions based on historical sales data. Which of these forecasting techniques would be most appropriate? | Regression analysis |
A retail store wants to forecast sales for the upcoming holiday season. Which of the following data sources would be the most relevant for forecasting with regression analysis? | Historical sales data from the previous years’ holiday seasons |
True or False: The price elasticity of demand measures the responsiveness of demand to changes in price. | True |
Which pricing strategy involves adjusting prices based on real-time market demand and factors such as supply availability and customer preferences? | Dynamic pricing |
True or False: Price determination takes both KPIs and price elasticity into account by adjusting prices to maximize revenue. | True |
Which of the following is an example of a direct cost that affects price determination? | Raw materials |
Which pricing strategy focuses on maximizing profit margins by charging a premium price for a unique product or service? | Value-based pricing |