The feature of a well-functioning investment industry that gives investors the ability to quickly buy and sell a significant amount of an investment without having a material impact on the price is described as:
Answer
Liquidity
Competitive markets
Return
Risk
Question 2
Question
The relationship between risk and return in investing can be stated as:
Answer
Higher risk indicates lower return
Higher risk indicates higher return
Lower risk indicates higher return
No relationship exists between risk and return
Question 3
Question
If the NPV is positive, at this discount rate project is?
Answer
Improper
Unsuitable
Arguable
Feasible
Question 4
Question
What is Internal rate of return or IRR?
Answer
It is the discount rate which generates gross present value of zero.
It is the discounted or present value of a series of future cash flows where the initial outlay is included as an outflow
It is the discounted or present value of a series of future cash flows where the initial outlay is not included as an outflow
It is the rate of interest at which all future cash flows must be discounted in order that the NPV of those cash flows should equal zero.
Question 5
Question
1. NPV is the discounted or present value of cash flows where the initial outlay is included as an outflow. 2. Discounting is the time value of money describes the greater benefit of receiving money now rather than later. Which statement is right?
Answer
Both false
Both true
1 True, 2. False.
1 False, 2. True.
Question 6
Question
Key elements of NPV are: 1. estimating/forecasting the cash flow; 2.choosing an appropriate discount rate.
Answer
Both false.
Both true.
1. True, 2. False.
1. False, 2. True.
Question 7
Question
Discount rate reflects:
Answer
anticipated inflation
time preference
risk
alternative opportunities
all of the above
Question 8
Question
One of the main advantages of providing business planning?
Answer
Gives an opportunity to clearly think over and formalize their ideas, check their viability on paper by calculation
Is necessary in the development of new areas of activity for both newly created enterprises and operating enterprises
The results of activities in the traditional understanding for the domestic economy (how to develop the most comprehensive program of activities) and setting goals
Especially important for costly large-scale, fundamental projects
Question 9
Question
What is the risk assessment?
Answer
the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities
one of the most complex and least accurate elements of financial analysis, so it is necessary to determine as accurately as possible all the unforeseen circumstances that may arise in the future
the potential of gaining or losing something of value. Values can be gained or lost when taking risk resulting from a given action or inaction, foreseen or unforeseen.
Government securities which deliver certain period of time.
Question 10
Question
According to the Blue Ocean Strategy, which actions recommended us?
Answer
Beat the competition
Compete in existing market space
Make the competition irrelevant.
Explicit existing demand
Question 11
Question
What is the business plan?
Answer
A written document that describes in detail how a business, usually a new one, is going to achieve its goals.
Is the administration of an organization, whether it be a business, a not-for-profit organization, or government body.
Is a field that deals with the study of investments.
Category of organization that is legally recognized in a given jurisdiction and characterized by the legal definition of that particular category
Question 12
Question
When we start a business from what we need start:
Answer
Marketing Research
Planning
Idea
Development of business
Question 13
Question
The authors of book Blue Ocean Strategy:
Answer
W. Chan Kim and R.Mauborgne
B.R.Regensburg and B.C.Heinzboro
C.Klark and B.Brown
D.Kork and F.Frank
Question 14
Question
Nowadays which sales model is used?
Answer
Advertising
Cold calling
Canned pitch
Engagement
Question 15
Question
An innovation, service or feature intended to make a company or product attractive to customers is called:
Answer
Customer value
Offering
Total value
Value proposition
Question 16
Question
A business plan is important for all of the following EXCEPT:
Answer
It helps you to communicate your ideas to others
It helps you decide what to sell
It makes you think about all aspects of your business
it can serve as a tool for managing your business
Question 17
Question
Which of the following is NOT included in a business plan structure?
Answer
Description of efforts of an entrepreneur
Timeline
Competitor analysis
Mission statement
Question 18
Question
Who said that planning is essential, but plans are useless?
Answer
Pierre Trudeau
Dwight D.Eisenhower
Joseph Schumpeter
Harry Truman
Question 19
Question
What is the most important requirement in starting a business?
Answer
Ability to believe in something that does not exist at the moment
Ability to multitask
Ability to believe in luck
Ability to make other people do the things they don’t want
Question 20
Question
What is value proposition?
Answer
an innovation, service, or feature intended to make a company or product attractive to customers
an asset or item that is purchased with the hope that it will generate income or will appreciate in the future.
The time value of money describes the greater benefit of receiving money now rather than later.