1. A large amount of _________ expenses will lead to a low amount of risk since they will _____ with revenues

a. variable; change

b. variable; not change

c. fixed; change

d. fixed; not change

2. Forecasting cash inflows is

a. important since there may be a time gap when a cash inflow from revenue occurs and when expenses must be paid.

b. important since there may be a time gap in when revenue is earned and when cash inflow from revenue occurs

c. not important since revenue forecasting is sufficient for financial forecasts

d. not important since short term cash can always be raised if there is a cash shortfall between cash inflows and cash outflows.

3. which of the following is not true about traditional finance and entrepreneurial finance?

a. they both still use the same techniques to calculate risk measures and returns

b. they both still focus on the areas of investments, financial markets, and financial management

c. they both still use the same techniques to record financial transactions

d. they both still use the same accounting statements

e. all of the above are true about traditional and entrepreneurial finance