Course Content

Financials: Assessment Questions

Course Overview

Needs and Markets

Intellectual Property

Regulatory and Reimbursement

Company Formation

Funding

• Financials

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Questions
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Summary

Provide FEEDBACK

Answer the following questions regarding the important topics covered in this section of the CD. The correct answers can be accessed through the link at the bottom of the page.

1. What is a realistic goal for your company's projected profit margin after your product hits the market?
   1. 5%
   2. 15%
   3. 50%
   4. 70%
2. As a rough estimate, the annual benefits, supplies, and equipment costs for each employee can be assumed to be
   1. $10,000
   2. $100,000
   3. Equal to that employee's annual salary
   4. Twice that employee's annual salary
3. The product of {total number of shares outstanding} and {price per share paid by the last round's investors} is called:
   1. Cash flow
   2. Gross margin
   3. Pre-money valuation
   4. Post-money valuation
4. What is a capitalization table?
   1. A listing of the total number of stock shares and options outstanding, arranged by owner and value
   2. A summary of the values of current assets, liabilities, and equity; used to calculate the company's net value
   3. A financial statement showing past or projected sales, less expenses, to arrive at actual or estimated net profit
   4. A back-of-the-envelope calculation of operating expenses from R&D and SG&A
5. When forecasting your company's cash requirements between now and the next funding round, you should:
   1. Seek the minimum amount of money possible to complete the next task and no more
   2. Focus only on the business plan leading to the next round and project no further
   3. Expect the next round of funding to commence 6-9 months after completion of your next milestone
   4. All of the above