What made the actions of the founders of the Fyre Festival fraud?
(1 point)
Responses
They got investors to commit funds to the festival.
They got investors to commit funds to the festival.
They provided financial reports with false information.
They provided financial reports with false information.
Many attendees were very disappointed in the product provided.
Many attendees were very disappointed in the product provided.
The founder may be required to refund the money paid by participants.
The actions of the founders of the Fyre Festival were considered fraudulent because they knowingly misrepresented the event as a luxurious and exclusive experience, luring investors and attendees to commit funds based on false advertising and promises. This included providing false financial reports to investors and ultimately failing to deliver on the product promised to attendees, resulting in a chaotic and disappointing event that left many stranded and without the services they were promised. Additionally, the founder may be required to refund the money paid by participants for their tickets.
what is the answer
The actions of the founders of the Fyre Festival were considered fraudulent because they knowingly misrepresented the event, provided false financial information to investors, and failed to deliver on the promises made to attendees, resulting in a chaotic and disappointing event. Additionally, the founder may be required to refund the money paid by participants for their tickets.
A business is hoping to expand. If it does so at this moment, it will increase debt. Since the financial planning requires both prioritizing paying debts and financing growth, what factor should weigh the most when the business is making this decision?
(1 point)
Responses
the role that investors play in this company
the role that investors play in this company
whether growth is in the company’s long-term goal
whether growth is in the company’s long-term goal
how new debt fits into the overall company finances
how new debt fits into the overall company finances
the opportunities that the expanded business will create
When a business is making a decision to expand and potentially increase debt, the factor that should weigh the most is "how new debt fits into the overall company finances." It is crucial for the business to assess and understand how taking on new debt will impact its financial health, cash flow, and sustainability. By evaluating the alignment of new debt with the company's financial situation and future goals, the business can make an informed decision that balances the need for growth with the responsibility of managing debts effectively.
Thomas is an entertainer for children’s parties. He runs the business and works the parties himself. He just uses his personal checking account to keep track of his deposits and debts. Is this adequate accounting?
(1 point)
Responses
Yes, he knows what each transaction is.
Yes, there are records of every transaction.
No, he needs specific records of business transactions.
No, checking accounts do not document all transactions.
No, he needs specific records of business transactions.
While Thomas may know what each transaction is in his personal checking account, using it for his business may not provide adequate accounting for his children's party entertainment business. To maintain proper financial records and separation between personal and business finances, he should consider setting up a separate business account to accurately track business transactions, expenses, and revenue. This will help in better managing the finances of his business, providing clarity on business performance, and simplifying tax reporting.
What happens if a venture capitalist invests in a company that does not end up making much of a profit?
(1 point)
Responses
The venture capitalist loses the money invested.
The venture capitalist loses the money invested.
The venture capitalist can sue the company in court.
The venture capitalist can sue the company in court.
The venture capitalist can take over and run the company.
The venture capitalist can take over and run the company.
The venture capitalist will provide more funds to save the company.
The venture capitalist loses the money invested.
If a venture capitalist invests in a company that does not end up making much profit, they risk losing the money they initially invested in the company. Venture capitalists understand the high-risk nature of investing in startups and growth-stage companies, and there is an inherent risk of losing the invested funds if the company does not perform as expected or fails to generate significant profits. Although the venture capitalist may explore various options or strategies to turn the situation around, the potential loss of the invested capital is a common outcome for unsuccessful investments in the venture capital industry.
Trevon is opening a cookie bakery in his small town. He is saving the funds he needs to open his business and is considering crowdsourcing the last $10,000. What should he offer investors?
(1 point)
Responses
money back with interest
money back with interest
a percentage of his business
a percentage of his business
a gift certificate for his business
a gift certificate for his business
Nothing—they are donating money.