BUSMOD Week 2
Finance and Business Management Quiz
Test your knowledge on financial ratios and business management with this comprehensive quiz. Covering essential concepts from profit margins to venture financing, this quiz is designed for both students and professionals eager to enhance their understanding of financial performance.
- 42 questions to challenge your financial acumen.
- Multiple choice format for easy selection.
- Instant feedback on your answers.
Showing the relationships between two or more financial variable and/or time, financial ratios are useful means of summarizing large amounts of financial data for comparative purposes.
T
F
Second-round, mezzanine, and liquidity-stage financing generally occur during a venture’s survival stage.
T
F
Investment bankers are users of financial ratios and measures of ventures primarily during the rapid-growth stage relative to the development and startup stages.
T
F
Cross-sectional analysis is used to examine a venture’s performance over time.
T
F
Leverage ratios indicate the extent to which the venture has used debt and its ability to meet debt obligations.
T
F
The equity multiplier is considered an efficiency ratio.
T
F
Profitability and efficiency ratios are generally considered to be more important during the development and startup stages compared to the survival and rapid-growth stages.
T
F
The part of a venture’s interest payment that is subsidized by the government because of the deductibility of interest is called the interest tax shield.
T
F
How efficiently a venture controls its expenses and uses its assets and debt is evaluated with profitability and efficiency ratios.
T
F
The Return on Assets model states: ROA = net profit margin × asset turnover × the equity multiplier.
T
F
If a firm has positive net income, a drop in a venture’s asset intensity ratio will increase its ROE
T
F
Investment bankers and commercial banks are important users of financial ratios and measures during which of the following life cycle stages?
Development stage
Startup stage
Survival stage
Rapid growth stage
All four
The entrepreneur, angels, and VCs are important users of financial ratios and measures during which of the following life cycle stages?
Dev stage
Startup stage
Survival stage
Rapid growth stage
All four stages
Which of the following is used to examine a venture’s performance over time?
Trend analysis
Qualitative analysis
Cross sectional
Industry comparable
Which of the following is used to compare a venture’s performance against another firm at the same point in time?
Cross sectional
Industry comparable
Trend
Qualitative
Net sales minus cost of goods sold when divided by sales is called which of the following ratios?
Operating profit margin
Net profit margin
Gross profit margin
Net operating after taxes
Net income divided by net sales is called which of the following ratios?
Net operating after sales tax margin
Operating profit margin
Gross profit margin
Net profit margin
The difference between a venture’s ability to generate cash to pay interest and the amount of interest it has to pay is determined by which of the following ratios?
Fixed charges coverage
Debt to asset
Equity multiplier
Debt to equity
Interest coverage
Which of the following is not a profitability and efficiency ratio?
Sales-to-total-assets
Inventory-to-total assets
NOPAT profit margin
Return on assets
Return on equity
Which of the following is true?
ROA is always greater than or equal to ROE
An increase in the asset turnover ratio implies a decrease in the asset intensity ratio
A and b
None
A firm has the following balance sheet information: total assets = $100,000; current assets = $30,000; inventories = $10,000; cash = $5,000; total liabilities = $30,000; current liabilities = $15,000; notes payable = $2,000. What are the firm’s quick and NWC-to-Total-Assets ratios?
1.00 and .13
1.33 and .13
1.00 and .15
1.33 and .15
Last year, Nemo’s Fish ‘n Chips recorded the following financial data: sales = $85,000; cost of goods sold = $45,000; selling and administrative expenses = $25,000; depreciation and amortization = $7,000; interest expense = $12,000. The tax rate was 30%. Find Nemo’s interest coverage for last year.
3.33 times
1.25 times
.86 times
.66 times
-.29 times
A venture has net sales of $400,000, cost of goods sold of $200,000, operating expenses (selling, general, and administrative) of $100,000, and interest expenses of $50,000. What is the operating profit margin?
25%
50.0%
75%
40%
Last year, Lenny’s Lemonade had $3,500 in sales, and cost of goods sold was $2,000. Depreciation expenses totalled $500 and interest expense was $700. If the tax rate is 25%, what is the net profit margin for Lenny’s Lemonade? What is its NOPAT margin?
20.7% and 21.43%
6.43% and 21.43%
2.14% and 32.14%
22.86% and 32.14%
Best practices of high-growth, high-performance firms applied in the marketing practices area include “developing new products or services that are considered to be the best.”
T
Best practices of high-growth, high-performance firms applied in the marketing practices area include “preparing detailed monthly financial plans for the next year and annual financial plans for the next five years.
T
F
Best practices of high-growth, high-performance firms applied in the financial practices area include “preparing detailed monthly financial plans for the next year and annual financial plans for the next five years.
T
F
Best practices of high-growth, high-performance firms applied in the management practices area include “assembling a management team that is balanced in both functional area coverage and industry/market knowledge.”
T
F
Nonfinancial performance output measures are used to improve the input measures.
T
F
An example of a nonfinancial measure is the number of customer complaints.
T
F
A company should only use nonfinancial performance measures when financial measures cannot be calculated.
T
F
The balanced scorecard is a set of financial and nonfinancial measures that reflect the performance of the business.
T
F
Non-financial accounting information is used more often for long-term operating decisions than is financial information.
T
F
A non-financial measure is operating information that has not been translated into dollars.
T
F
Costs of controlling quality include prevention costs and internal failure costs.
T
F
Prevention costs and appraisal costs are considered costs of controlling quality.
T
F
Costs of failing to control quality include prevention costs and external failure costs.
T
F
It is easier to quantify costs of controlling quality than the costs of failing to control quality.
T
F
By spending more in costs of controlling quality, the costs of failing to control quality will decrease.
T
F
Developing new and delivering high-quality products or services that command higher prices and margins best describes strong
Marketing practices
Financial practices
Operating
Management
Effective entrepreneurial management teams should include all of the following except?
In-house accounting, auditing, and tax professionals
Share the entrepreneurial spirit
Work collaboratively with each other
Have successful experience in the venture’s industry and markets
Provide expertise in the areas of marketing, finance, and operations
The balanced scorecard measures financial and non-financial performance of a business. The balanced scorecard measures four areas. Identify one of the following that is not included as a performance measurement.
Internal Process
Financial
Innovation and Learning
Employees
{"name":"BUSMOD Week 2", "url":"https://www.quiz-maker.com/QPREVIEW","txt":"Test your knowledge on financial ratios and business management with this comprehensive quiz. Covering essential concepts from profit margins to venture financing, this quiz is designed for both students and professionals eager to enhance their understanding of financial performance.42 questions to challenge your financial acumen.Multiple choice format for easy selection.Instant feedback on your answers.","img":"https:/images/course6.png"}
More Quizzes
Chapters 8
1890
Esame week 2
4221266
Business finance final exam pt.1
48240
CAPITOLO 6
1586
Assets or Liabilities??
15816
Goodwill Valuation Quiz
1050
Economics 1-30
191098
COM 3636 Test 2 MCQ
11679
Statement of Comprehensive Income
105111
Exam 2 ch7-8 concepts
633256
Accounting Exam 2 True or False Prep
1587
Accounting Midterm
1589