Question 15

Question text

The most important thing that any entrepreneur, or team of entrepreneurs, can do to build a strong ethical culture in their organization is to hire an aggressive attorney.

a.

True

b.

False

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Question 16

Question text

Which of the following statements is not correct regarding business angels?

a.

Business angels are valuable because of their willingness to make relatively small investments.

b.

Business angels invest in more startups on a yearly basis than venture capitalists.

c.

Business angels are difficult to find.

d.

Business angels usually take a seat on the board of directors of the firms in which they invest.

e.

The number of angel investors has decreased dramatically over the past decade.

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Question 17

Question text

The single most important thing the founders of an entrepreneurial venture can do is ________.

a.

start a board of advisors

b.

establish a strong ethical culture for their firms

c.

make money

d.

select a limited liability corporation as opposed to an S-corporation

e.

establish business partnerships

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Question 18

Question text

A disadvantage of C corporations is that they are subject to ________, which means that a corporation is taxed on its net income and when the same income is distributed to shareholders in the form of dividends it is taxed again on shareholders' personal income tax returns.

a.

dual harm

b.

double duty

c.

dual toll

d.

double taxation

e.

double assessment

A firm's ________ reflects the results of its operations over a specified period and shows whether it is making a profit or is experiencing a loss.

a.

income statement

b.

statement of cash flows

c.

operating budget

d.

balance sheet

e.

forecast