Question
Trevon is opening a cookie bakery in his small town. He is saving the funds that he needs to open his business and is considering crowdsourcing the last $10,000. He has already saved $60,000 to buy the needed equipment and get through a few slow months. A friend suggests that he find a venture capitalist. Is this a good suggestion?
(1 point)
Responses
No, venture capitalists are only for tech businesses.
No, venture capitalists are only for tech businesses.
No, venture capitalists tend to invest in higher risk businesses.
No, venture capitalists tend to invest in higher risk businesses.
Yes, they will likely want to invest much more than the $10,000 he needs.
Yes, they will likely want to invest much more than the $10,000 he needs.
Yes, this is exactly the kind of innovated business venture capitalists prefer.
Yes, venture capitalists tend to invest in higher risk businesses.
Question
Thomas is an entertainer for children’s parties. He runs the business and works the parties himself; he has no debts so the finances are simple. What is the minimum that needs to be documented in his accounting?
(1 point)
Responses
income, expenses, and taxes
income, expenses, and taxes
assets, investments, and equity
assets, investments, and equity
income, investments, and taxes
income, investments, and taxes
equity, investments, and assets
income, expenses, and taxes
If you were assigned the task of reviving Toys ‘R’ Us, which would be the best strategy?
(1 point)
Responses
Open the stores just like they were to appeal to sentimentality.
Open the stores just like they were to appeal to sentimentality.
Get rid of the in-store experience in favor of an entirely online business.
Get rid of the in-store experience in favor of an entirely online business.
Build a store that offers a very different experience than other big box stores.
Build a store that offers a very different experience than other big box stores.
Create recognizable cartoon characters to attract children and define the brand.
Build a store that offers a very different experience than other big box stores.
Tressie’s niece wants to open a boutique household goods store. Tressie has read her business plan and is quite impressed. She is considering acting as an angel investor and giving her niece the $10,000 she needs to secure the retail space and some of the inventory for her store. What kind of budget should Tressie ask to see before making her final decision?
(1 point)
Responses
cash budget
cash budget
start-up budget
start-up budget
operating budget
operating budget
sales forecast budget
sales forecast budget
start-up budget
Why was carrying so much debt a problem for Toys ‘R’ Us?
(1 point)
Responses
It forced them to move to smaller retail space.
It forced them to move to smaller retail space.
Managers were unaware of how much debt there was.
Managers were unaware of how much debt there was.
It could not afford adequate marketing due to the debt.
It could not afford adequate marketing due to the debt.
The interest payments were using up a substantial amount of revenue.
The interest payments were using up a substantial amount of revenue.
Jennifer’s business has been open for two years. She is hoping that her new marketing plan will increase sales because she would really like to hire an assistant. If sales are up for six months in a row, she will be comfortable bringing on another employee. What is this an example of?
(1 point)
Responses
resolving a discrepancy
resolving a discrepancy
measuring assets and equity
measuring assets and equity
long-term financial planning
long-term financial planning
short-term financial planning