Deck 17: The Financial Plan

Question 1

An entrepreneur gives his pitch and makes an assumption that his revenue growth will continue at the same rate. This is an example of a(n):

A) Optimistic case
B) Pessimistic case
C) Base case
D) Recursive case

Answer 1

Base case

Question 2

What does pro forma mean?

A) Right to invest in a follow on round
B) Right of refusal
C) In advance of actual data
D) Based on data

Answer 2

In advance of actual data

Question 3

The basic accounting formula is assets equals liabilities plus equity.

Answer 3

True

Question 4

Book value is different than market value because:

A) Market value factors in the company's growth prospects
B) Book value does not take into account liability
C) Market value does not take into account liability
D) Book value is the market price times the shares

Question 5

Sales projections is often one of the most fleshed out parts of a new venture's business plan.

Question 6

Which of the following is typically not a category of an operating expense?

A) Sales and marketing
B) Administrative
C) R & D
D) Appreciation

Question 7

This type of business generally has little to no cost of goods sold.

A) Automotive
B) Oil
C) Fashion
D) Online

Question 8

If a company is cash flow negative, it requires outside capital to sustain operations.

Question 9

Cash flow can be represented by the following formula:
TC(N + 1) = (CF - Disbursements) + TC(N)
What does N + 1 represent?

A) End of the month
B) Stepwise innovation
C) Number of sales
D) Recursion

Question 10

Debt retired has a positive effect on net cash.

Question 11

Which of the following does the balance sheet not have?

A) Assets
B) Equity
C) Taxes
D) Liability

Question 12

Breakeven is when total sales equals total:

A) Costs
B) Equity
C) Revenue
D) Pay-outs

Question 13

Total sales is given by the formula: R = Q x P. What does Q represent?

A) Quality
B) Price per unit
C) Number of units sold
D) Number of customers

Question 14

Total cost is given by the formula: TC = FC + VC. What does VC stand for?

A) Venture capital
B) Variable cost
C) Venture cost
D) Costs incurred

Question 15

Return on invested capital (ROIC) is the same as:

A) RIC
B) ROEC
C) ROE
D) ROI

Question 16

The ROI is the net income divided by:

A) Investment
B) Capital
C) Sales
D) Profits

Question 17

For any firm, the income must be distributed to the investor.

Question 18

The income statement reports on a specific moment of time, while the balance sheet looks at a period of time.

Question 19

What has been DeepMind's most significant accomplishment?

A) Winning Jeopardy against the best in the world
B) Winning Go against the best in the world
C) Advancing autonomous vehicles
D) Creating neural nets

Question 20

How did Google use DeepMind after the acquisition?

A) Streamline search
B) Improve efficiency of data centers
C) Power better natural language processing
D) To beat IBM Watson in chess