Ask Question, Ask an Expert


Ask Basic Finance Expert

1)  Find out  number of “resources” available from Small Business Administration (SBA) for entrepreneurs that may be useful in starting, financing, and managing an entrepreneurial venture.  The SBA Web site is  Also, search the SBA’s office of Advocacy website ( for information relating to recent annual numbers of employers firms births and the importance of small businesses to the U.S. economy.

2)  Following are some pairs of entrepreneurs.  Using web if required, relate the entrepreneur with the companies the founded:  answer the problem, but also pick one of the companies and compose a short summary of it in your own words.

1.    Steve Jobs and Steven Wozniak             A.  Google
2.    Bill Gates and Paul Allen                B.  Ben & Jerry’s
3.    Larry Page and Sergey Brin            C.  Microsoft
4.    Ben Cohen and Jerry Greenfield            D. Apple, Inc.


1) {Financing Concept} Following ventures are at different stages in their life cycles.  Recognize the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

A) Phil Young, founder of Pedal Pushers, has an idea for petal replacement for children’s bicycles.  The Pedal Pusher would replace existing bicycle pedals with the easy strap stirrup to help smaller children hold their feet on the pedals.  The Pedal Pusher will also glow in the dark and will provide a musical sound as the bicycle is pedaled.  Phil is seeking some financial help in developing working prototypes.

B)  Petal Providers is a firm which is trying to model the U.S. floral industry after its European counterparts.  European flower markets tend to have larger selections at lower prices.  Revenues started at $1 million last year when the first “mega” Petal Providers floral outlet was opened.  Revenues are expected to be $3 million this year and $15 million next year after two extra stores are opened.

2) {Life Cycle Financing} Following ventures have supplied information on how they are being financed.  Link type and sources of financing to where each venture is likely to be in its life cycle.

A) Voice River provides media-on-demand services via the internet.  Voice River raised $500.000 of founder’s capital in April 2008 and “seed” financing of $1 million in September 2008 from the Sentinak Fund.  The firm is presently seeking $6 million for a growth round of financing.

B) Electronic Publishing raised $200.000 from three private investors and another $200.000 from SOFTLEND Holdings.  The financial capital is to be used to complete software development of e-mail delivery and subscription management services.

3) {Financial Risk and Return Considerations} describe how you will select between the following situations.  Develop your answers from perspective of the principles of entrepreneurial finance presented earlier in the chapter.  You might arrive at your answers with or without making actual calculations.

A) You have $1,000 to invest for one year (this would be a luxury for most entrepreneurs).  You could set a 4 percent interest rate at the third first bank or a 5 percent interest rate at the first fourth bank. Which savings account will you select and why?

B) A “friend” of yours would lend you $10,000 for one year if you agree to repay him $1,000 interest plus returning the $10,000 investment.  A second “friend” has only $5,000 to lend to you but wishes total funds of $5,400 in repayment at the end of one year.  Which loan will you select and why?

C)  You have the opportunity to invest $3,000 in one of two investments.  First investment will pay you either $2,700 or $3,000 at the end of one year, depending on the success of the venture.  The second investment will pay you either $2,000 or $4,000 at the end of the year, depending on the success of the venture.  Which investment will you select and why?  will you answer change if your investment were only $1

D) An outside venture is considering investing $100,000 in either your new venture or another venture, or investing $50,000 in each venture.  At the end of one year, value of your venture may be $0 or $1 million.  Other venture is expected to be worth either $50,000 or $500,000 at the end of one year.  Which investment choice (yours, the other venture, or half and half) do you think venture investor will select? Why?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91714

Have any Question? 

Related Questions in Basic Finance

Surplus and deficit units explain the meaning of surplus

Surplus and Deficit Units Explain the meaning of surplus units and deficit units. Provide an example of each. Which types of financial institutions do you deal with? Explain whether you are acting as a surplus unit or a ...

Focus on the monthly log returns of ibm and hpq stocks from

Focus on the monthly log returns of IBM and HPQ stocks from January 1962 to December 2003. Fit a DVEC(1,1) model to the bivariate return series. Is the model adequate? Plot the fitted volatility series and the time-varyi ...

How have increased competition and price volatility

How have increased competition and price volatility affected financial innovation? What are some specific types of innovation that deal with these factors?

Financial forecasting assignment-the historical financial

Financial Forecasting Assignment- The historical financial statements of HWO Incorporated are on the accompanying EXCEL file. Enter your assigned number in cell l1 (eye one). This is your individual data set. Print the p ...

Suppose if you spend 1 million today on a research project

Suppose if you spend $1 million today on a research project, there is a 30% chance of success at year-end and a 70% chance of failure. In the event of failure, you can decide to invest another $1 million to continue the ...

Under what conditions could an import quota and a tariff

Under what conditions could an import quota and a tariff have exactly the same effect on price and bring the same gains and losses (given a tariff level that restricts imports just as much as the quota would)?

Opti-net has a cost of goods sold cogs of 57 they are

Opti-Net has a Cost of Goods Sold (COGS) of 57%. They are considering opening another officeat a cost of $22,000 per month. If they have an average revenue of $70 per sale and they only sellone in five customers, what wo ...

Types of markets distinguish between primary and secondary

Types of Markets Distinguish between primary and secondary markets. Distinguish between money and capital markets.

Personal finance discussionretirement and estate

Personal Finance Discussion Retirement and Estate Planning When should you start to think about retirement and estate planning? When should you start taking action? Why? Have you already started taking steps toward retir ...

What are the net proceeds from the sale of a bond what are

What are the net proceeds from the sale of a bond? What are flotation costs, and how do they affect a bond's net proceeds? Please answer in 100-150 words.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate