Questions from Entrepreneurial Finance


Q: What is the importance of the relationship between a venture’s current liabilities

What is the importance of the relationship between a venture’s current liabilities and its total debt?

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Q: Describe the two types of “coverage” ratios that are typically

Describe the two types of “coverage” ratios that are typically calculated when trying to assess a venture’s ability to meet its interest payments and other financing-related obligations?

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Q: What are four measures used to indicate how efficiently the venture is

What are four measures used to indicate how efficiently the venture is in generating profits on its sales? Describe how each measure is calculated.

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Q: Identify and describe four efficiency/return ratios that combine data from

Identify and describe four efficiency/return ratios that combine data from both the income statement and the balance sheet.

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Q: Explain the meaning of investment risk of loss and describe how risk

Explain the meaning of investment risk of loss and describe how risk can be defined relative to an average value.

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Q: Identify and describe the two components of the ROA model both in

Identify and describe the two components of the ROA model both in terms of what financial dimensions they measure and how they are calculated.

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Q: What are the three ratio components of the ROE model? How

What are the three ratio components of the ROE model? How is each calculated and what financial dimensions do they measure?

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Q: Indicate some of the concerns or cautions that need to be considered

Indicate some of the concerns or cautions that need to be considered when conducting ratio analysis.

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Q: Describe Sustainable Northwest’s short-term inflows and outflows of cash.

Describe Sustainable Northwest’s short-term inflows and outflows of cash. What would you expect to be the main ingredients of each part of the cash conversion cycle?

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Q: Provide a brief description of the use of Regulation A when issuing

Provide a brief description of the use of Regulation A when issuing securities.

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