ENTREPRENEURIAL FINANCE

1. Identify some types of financing that are associated with the following stages of new venture development: Research and Development, Start-Up, Early Growth, Rapid Growth, and Equity.

2. What is a Venture Capital Fund? How is it created and organized? What role does it play in the capital formation process of a start-up venture? How do Venture Capital Funds add value to the business?

3. Define Cost of Capital for a new enterprise Describe the various layers of the capital structure and how they can be used to balance the Cost of Capital.

4. How are product-market, organizational, and financial strategies interdependent? Why is it important for new ventures to consider them at the same time as opposed to one after the other? Give some examples.

5. Why is forecasting revenue the logical starting point for preparing a new venture's financial statements?

6. Describe the roles of the income statement, the balance sheet, and the statement of cash flow. How do they interact with each other in the forecasting process?

7. Describe the Calculation of Cash Flow and cite the numerous uses for it in evaluating financing and reacting to change.