1.Describe the major taxation advantages of a limited liability company or a
subchapter S corporation over a regular corporation. For limited liability companies
and subchapter corporations, income flows to the shareholders or owners and is
1. Why is it usually easier to forecast sales from seasoned firms in contrast with early-stage
It is usually easier to forecast a seasoned firms sales compared to early-stage ventures
because a seasoned firm generally has an operating
1. Describe the types of financial ratios and other financial performance measures that are used during a
ventures successful life cycle. Who are the users of financial performance measures?
Development and startup stage
This video was very informative and had a lot of great tips. The purpose of
this video is to show you things you can do to manage your cash flow to ensure your
long-term business success. What is taught is that profit takes time to turn into cash,
1. Describe the types of resources (assets) needed for a new product venture during its
development and startup stages. Comment on the likely revenues and expenses during these early
life cycle stages.
Assets: acquire initial
Chapter 1 Questions:
1. What is entrepreneurship? What are some basic characteristics of entrepreneurs?
Entrepreneurship is the process of changing ideas into commercial opportunities and
creating value. Some basic characteristics of an entrepreneur are r
Briefly describe the process involved in moving from an idea to a business plan.
You start with ideas then you move to the next step feasibility where you find out if the idea can
convert to a product or service then the last step developing th
1. Describe how the costs of debt and equity differ from the perspective of accounting measures.
While accountants recognize that financial capital has a cost and recommend its complete inclusion
in performance appraisal and decision-making, hi
Small Business Financing
Unit # 2 Questions
Please answer the questions and upload them to the grade book. Please complete all
Chapter assignments before you post them.
EVALUATING OPERATING AND FINANCIAL PERFORMANCE
In this chapter, we f
1. Provide a description of the financing cost implications associated with a ventures need for
The cost of obtaining additional funds may be explicit, such as additional interest expense
associated with debt. Interest expense