Entrepreneur

Question 0

Provide the basis for evaluating expenditures that will impact the business for more than a year.

Answer 0

Capital Budget

Question 1

It reflects the profits and loss status of the business for time periods that are forecast after this, summarize data flows to others statement.

Answer 1

Pro-Forma Income Statement

Question 2

Obtaining borrowed funds for the company. Funds plus an interest rate need to be paid back.

Answer 2

Debt Financing

Question 3

Obtaining funds for the company in exchange for ownership in exchange for ownership it does NOT require collateral. Owner position

Answer 3

Equity Financing

Question 4

Indicates the volume of sales needed to cover total variable and fixed expenses. Total revenue =total cost is not payback period

Answer 4

Break Even Analysis

Question 5

Estimates the expected volume of sales by month for first year quarter or year.

Answer 5

Sales Budget

Question 6

What are the purposes of a financial plan?

Answer 6

Provide how much capital is needed and budgeting control

Helps entrepreneurs and investors know how the company will meet financial obligations.

Question 7

Why marketing plan fail?

Answer 7

Failure to understand costumer

Lack of adequate analysis

Unrealistic goals

Question 8

Defines intended costumers the competing alternative. Always be framed as a comparison to the costumers next best alternative .

Answer 8

Value proposition

Question 9

The research that understand the need of customers from interaction with the customer organizational culture and competitive dynamic

Answer 9

Primary Research

Question 10

Specific group of potential customers toward which venture aims its marketing plan

Answer 10

Target Market

Question 11

Business that combines the tax advantages of partnership and the corporation

• No minimal tax
• Limited liability
• stock transferable
• one class of stock
• Limited shareholders

Answer 11

S Corporation

Question 12

It has 2 or more as business owner
In General partners are share equally responsibilities and liability
In the Limited there are limited partners and liability is limited amount if investment

Answer 12

Partnership

Question 13

Is the most common business. Its simple and flexible and the least expensive
Pays no tax and owner keeps all the profit after personal income tax
Salary not deductible expense

Answer 13

Sole Proprietorship

Question 14

The rule of unlimited amount to unlimited number of people accredited investors plus up to 35 other purchases

Answer 14

Rule 506 “safe harbor “