Chapter 14 Questions and Problems

Chapter 14 Questions and Problems - ENTREPRENEURIAL...

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E NTREPRENEURIAL F INANCE : Strategy, Valuation, and Deal Structure Chapter 14. Choice of Financing Questions and Problems 1. Discuss how you would expect the financing choices of the following firms to differ and explain the reasons for the differences. a. An early-stage research and development venture, compared to an established venture that is generating revenue. b. A venture with revenues that are growing very rapidly and must expand its working capital base to match, compared to a venture with revenues that are growing at the inflation rate. c. A venture that is highly profitable and growing, compared to a venture that is growing at a similar rate but has not yet achieved profitability. d. A venture that is organized as a C corporation, compared to one that is organized as an S corporation. e. A venture that is being undertaken by an entrepreneur who has a significant track record of new venture successes, compared to a venture that is being undertaken by an entrepreneur with no previous new venture experience. f. A venture that requires large investment in tangible assets, compared to one whose assets are all intangible. 2. What are the advantages and disadvantages of the following financing/organizational choices? a. A strategic partner. b. Factoring of accounts receivable. c. Venture capital. d. Franchising. e. Postponing payment of accounts payable. f. A secured loan. g. Licensing. h. Direct public offering. i. Initial public offering. j.
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Chapter 14 Questions and Problems - ENTREPRENEURIAL...

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