Economics

Description

Investment of an enterprise and business plan
Ernur Aidaraly
Quiz by Ernur Aidaraly, updated more than 1 year ago
Ernur Aidaraly
Created by Ernur Aidaraly over 4 years ago
29
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Resource summary

Question 1

Question
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.
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