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When it comes to sharing with an investor the most important part of the business plan?
Executive summary (because investors don’t have time to read the long business plan)
According to the textbook what helps make sense of all the financials of the business.
Ratio analysis (we compare ourselves to other ppl in the industry which could help determine how we are doing)
Why does an entrepreneur write a business plan?
For investors and employees.
What section of the business explains how profits are made?
Economies of the business (revenue drivers and expenses)
Which is not a part of a partnership.
Partial(made up)
A business plan should take many weeks to write properly.
True
When analyzing the market, you should consider a competitive analysis.
True
What type of business needs articles and corporation.
C-Corporation
What is an ethical dilemma?
A situation that benefits you not the company.
What document describes the split of equity?
Founders agreement
A code of behavior is a written policy a company has on social issues?
False(code of conduct)
According to the book what is the best way to build a strong ethical culture
Lead by example
Limited partnerships include two classes of owners general and limited.
True
What is not a type of corporation?
T-corp
The ability to meet short term financial obligations.
Liquidity
What is not a fixed asset?
Raw materials
What is a PNL statement (Profit and loss)
Income Statement (easiest to read)
Cash is considered
A current asset
A budget is an itemized forecast of a company’s income and expenses.
True
Proforma financial statements are required by the SCC
False
Net income divided by net sales =?
A companys profit margin
Starting a business as in induvial has an advantage over starting one with a team.
False
When new employees cannot adjust quickly enough to their new roles.
Liability of newness
A corporation requires.
A board of directors(corporation)
Heterogeneous what are the 2 types?
Are diverse with abilities and experiences(skill sets)
A board of directors has 3 formal responsibilities.
Appoint officer to the firm, have to oversee the affairs of the corporation, if there are any dividends that are going out they are the ones who look into it.
When you have a high-quality or well know person on your board of directors it is known as signaling.
True
Who has legally responsibility over the business.
Board of directors
