Other factors remaining constant, an increase in the average payment period will result in ________. A) a decrease in the average collection period B) a decrease in the cash conversion cycle C) an increase in the cash conversion cycle D) an increase in the average collection period ANSWER B
Date: September 19th, 2020
One way to improve the cash conversion cycle is to ________. A) speed up collections B) slow down credit approvals C) slow down inventory turnover D) speed up payments ANSWER A
Date: September 19th, 2020
A pro forma statement sets out the financial predictions of a company on an “as if” basis—that is, it projects future performance based on a set of operating and sales facts. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: A pro forma statement sets out the financial predictions of […]
Date: September 19th, 2020
The VC industry did not become a major force in financing ventures until which TWO problems were solved? a. informational asymmetry and principal-agent problems b. legislation allowed institutional investors to provide significant capital backing, and an effective legal-liability arrangement for contributing parties was devised c. contracting problems with the venture and compensation for executives d. […]
Date: September 19th, 2020
Pro forma statements are tools used by the company to help highlight areas that the company needs to avoid as part of its short-term financial planning. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Pro forma statements are tools used by the company to help highlight areas that the […]
Date: September 19th, 2020
Other factors remaining constant, a decrease in the average age of inventory will result in ________. A) a decrease in the average collection period B) a decrease in the cash conversion cycle C) an increase in the cash conversion cycle D) an increase in the average collection period ANSWER B
Date: September 19th, 2020
Pro forma statements are tools used by the company to forecast its profitability and obligations for the coming year. Indicate whether the statement is true or false. ANSWER Answer: TRUE
Date: September 19th, 2020
VCs generally take the form of a a. limited partnership. b. corporation. c. proprietorship. d. joint venture. ANSWER A
Date: September 19th, 2020
A pro forma statement uses the prior year’s financial statements to find the relationship or relative percentage of each line (accounting category) to either the sales revenue or the total assets of the firm. Indicate whether the statement is true or false. ANSWER Answer: TRUE
Date: September 19th, 2020
Joe Ogden, the Chairman and CEO of Ogdenergy, Inc, a promising venture in the natural gas industry, is negotiating with Summer Street Capital Partners, a Buffalo, NY-based venture capital firm (VC), for funding of $15 mn. , which will be used for building PP&E. Summer Street is impressed with the venture, and is considering providing […]
Date: September 19th, 2020
