Questions from General Entrepreneurship


Q: What are the three separate categories of activities that are reflected on

What are the three separate categories of activities that are reflected on a firm’s statement of cash flows? Briefly explain the importance of each activity.

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Q: What is the purpose of financial ratios? Why are financial ratios

What is the purpose of financial ratios? Why are financial ratios particularly useful in helping a firm interpret its financial statements?

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Q: What is the purpose of an assumptions sheet?

What is the purpose of an assumptions sheet?

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Q: How is a focus group used to generate new business ideas?

How is a focus group used to generate new business ideas?

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Q: What is meant by the percent-of-sales method as

What is meant by the percent-of-sales method as it relates to forecasts?

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Q: What is the purpose of a forecast? What factors does a

What is the purpose of a forecast? What factors does a firm use to create its forecasts of future sales, income, expenses, and capital expenditures?

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Q: What is the purpose of an income statement? What are the

What is the purpose of an income statement? What are the three numbers that receive the most attention when evaluating an income statement? Why are these numbers important?

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Q: What are the costs involved in purchasing a business format franchise?

What are the costs involved in purchasing a business format franchise? Are these costs similar across franchise systems, or do they vary widely? Which costs are one-time costs and which costs continue...

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Q: How does a firm compute its profit margin? What is the

How does a firm compute its profit margin? What is the significance of this ratio?

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Q: What is signaling and what is its potential value for a new

What is signaling and what is its potential value for a new venture

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