Which of the following is false Capitalising R\&D improves profitability Capitalising R\&D is a good policy for new ventures Capitalising R\&D spreads the cost of R\&D over anticipated sales outcomes Capitalising R\&D turns costs into assets Capitalising R\&D is suitable for large stable firms with multiple product development streams QUESTION 7 Which of the following is false? Venture capital is a valuable source of loan finance for fast growing companies Each individual venture capital investment has a low chance of making high returns Venture capital has historically been less profitable in Europe than in the United States Venture capital invests with a view to selling the investment for a multiple of the purchase price Venture capitalists often invest in syndicates to widen their portfolios QUESTION 8 Which of the following is true? Lengthening debtor days releases cash to the company Shortening debtor days improves cash flow in the short term Lengthening creditor days can cause cash flow problems Terms of trade affect profitability as much as cash flow Shortening accounts receivable can cause cash flow problems Which of the following is false: Equity capital is long term, permanent capital Venture capitalists seek long term capital gain, not short term income A bank can withdraw an overdraft facility at will Banks typically require security for a loan to a new venture Government grants are essentially free money QUESTION 10 Which of the following is false: The quick ratio measures short term liquidity The gearing ratio measures short term liquidity Net current assets measures short term liquidity The current ratio measures short term liquidity The acid test measures short term liquidity QUESTION 11 Which of the following is true: The true value of an investor is not their expertise but their money Banks seek long term capital gain from their loans to new ventures Government grants on equipment are paid over before purchase Government grant funding provides legitimacy and leverage to new ventures seeking finance Business angels prefer long term loans to equity capital investments