SOLUTION MANUAL For Entrepreneurial Finance, 7th Edition by J. Chris Leach, Ronald W. Melicher, Verified Chapters 1 - 16, Complete Newest Version With CAPSTONE CASES

SOLUTION MANUAL For Entrepreneurial Finance, 7th Edition
by J. Chris Leach, Ronald W. Melicher, Chapters 1 - 16,
Complete With CAPSTONE CASES

,TABLE OF CONTENTS
T T T




PartT1:TTHETENTREPRENEURIALTENVIRONMENT.
1.TIntroductionTtoT

FinanceTforTEntrepreneurs.
2.TDevelopingTtheTBusinessTIdea.
PartT2:TORGANIZINGTANDTOPERATINGTTHETVENTURE.
3.TOrganizingTandTFinancingTaTNewTVenture.
4.TPreparingTandTUsingTFinancialTStatements.
5.TEvaluatingTOperatingTandTFinancialTPerformance.
PartT3:TPLANNINGTFORTTHETFUTURE.
6.TManagingTCashTFlow.
7.TTypesTandTCostsTofTFinancialTCapital.
8.TSecuritiesTLawTConsiderationsTWhenTObtainingTVentureTFinancing.
PartT4:TCREATINGTANDTRECOGNIZINGTVENTURETVALUE.
9.TProjectingTFinancialTStatements.
10.TValuingTEarly-StageTVentures.
11.TVentureTCapitalTValuationTMethods.
PartT5:TSTRUCTURINGTFINANCINGTFORTTHETGROWINGTVENTURE.
12.TProfessionalTVentureTCapital.
13.TOtherTFinancingTAlternatives.
14.TSecurityTStructuresTandTDeterminingTEnterpriseTValues.
PartT6:TEXITTANDTTURNAROUNDTSTRATEGIES.
15.THarvestingTtheTBusinessTVentureTInvestment.
16.TFinanciallyTTroubledTVentures:TTurnaroundTOpportunities?
PartT7:TCAPSTONETCASES.
CaseT1.TEco-Products,TInc.
CaseT2.TSpatialTTechnology,T

,Chapter 1 T



INTRODUCTIONTTOTFINANCETFORTENTREPRENEURS

FOCUS

TheTpurposeTofTthisTfirstTchapterTisTtoTpresentTanToverviewTofTwhatTentrepreneurialTfinanceTisTabout.TInTdo
ingTsoTweThopeTtoTconveyTtoTyouTtheTimportanceTofTunderstandingTandTapplyingTentrepreneurialTfinanceTm
ethodsTandTtoolsTtoThelpTensureTanTentrepreneurialTventureTisTsuccessful.TWeTpresentTaTlifeTcycleTapproachT
toTtheTteachingTofTentrepreneurialTfinanceTwhereTweTcoverTventureToperatingTandTfinancialTdecisionsTfaced
TbyTtheTentrepreneurTasTaTventureTprogressesTfromTanTideaTthroughTtoTharvestingTtheTventure.



LEARNINGTOBJECTIVES

LOT1.1:TCharacterizeTtheTentrepreneurialTprocess.
LOT1.2:TDescribeTentrepreneurshipTandTsomeTcharacteristicsTofTentrepreneurs.
LOT1.3:TIndicateTseveralTmegatrendsTprovidingTwavesTofTentrepreneurialTopportunities.TLOT1.4
:TListTandTdescribeTtheTsevenTprinciplesTofTentrepreneurialTfinance.
LOT1.5:TDiscussTentrepreneurialTfinanceTandTtheTroleTofTtheTfinancialTmanager.TLOT1.
6:TDescribeTtheTvariousTstagesTofTaTsuccessfulTventure‘sTlifeTcycle.
LOT1.7:TIdentify,TbyTlifeTcycleTstage,TtheTrelevantTtypesTofTfinancingTandTinvestors.TLOT1.
8:TUnderstandTtheTlifeTcycleTapproachTusedTinTthisTbook.

CHAPTERTOUTLINE

1.1 THETENTREPRENEURIALTPROCESS
1.2 ENTREPRENEURSHIPTFUNDAMENTALS
A. WhoTisTanTEntrepreneur?
B. BasicTDefinitions
C. EntrepreneurialTTraitsTorTCharacteristics
D. OpportunitiesTExistTButTNotTWithoutTRisks
1.3 SOURCESTOFTENTREPRENEURIALTOPPORTUNITIES
A. SocietalTChanges
B. DemographicTChanges
C. TechnologicalTChanges
D. EmergingTEconomiesTandTGlobalTChanges
E. CrisesTandT―Bubbles‖
F. DisruptiveTInnovation


1

, 1.4 PRINCIPLESTOFTENTREPRENEURIALTFINANCE
A. Real,THuman,TandTFinancialTCapitalTmustTbeTRentedTfromTOwnersT(PrincipleT#1)
B. RiskTandTExpectedTRewardTgoTHandTinTHandT(PrincipleT#2)
C. WhileTAccountingTisTtheTLanguageTofTBusiness,TCashTisTtheTCurrencyT(PrincipleT#3)
D. NewTVentureTFinancingTInvolvesTSearch,TNegotiation,TandTPrivacyT(PrincipleT#4)
E. ATVenture‘sTFinancialTObjectiveTisTtoTIncreaseTValueT(PrincipleT#5)
F. ItTisTDangerousTtoTAssumeTthatTPeopleTActTAgainstTTheirTOwnTSelf-
InterestsT(PrincipleT#6)
G. VentureTCharacterTandTReputationTcanTbeTAssetsTorTLiabilitiesT(PrincipleT#7)
1.5 ROLETOFTENTREPRENEURIALTFINANCE
1.6 THETSUCCESSFULTVENTURETLIFETCYCLE
A. DevelopmentTStage
B. StartupTStage
C. SurvivalTStage
D. Rapid-GrowthTStage
E. Early-MaturityTStage
F. LifeTCycleTStagesTandTtheTEntrepreneurialTProcess
1.7 FINANCINGTTHROUGHTTHETVENTURETLIFETCYCLE
A. SeedTFinancing
B. StartupTFinancing
C. First-RoundTFinancing
D. Second-RoundTFinancing
E. MezzanineTFinancing
F. Liquidity-StageTFinancing
G. SeasonedTFinancing
1.8 LIFETCYCLETAPPROACHTFORTTEACHINGTENTREPRENEURIALTFINANCETSUMMA
RY


DISCUSSIONTQUESTIONSTANDTANSWERS

1. WhatTisTtheTentrepreneurialTprocess?

TheTentrepreneurialTprocessTcomprises:TdevelopingTopportunities,TgatheringTresources,TandTmanagi
ngTandTbuildingToperationsTwithTtheTgoalTofTcreatingTvalue.

2. WhatTisTentrepreneurship?TWhatTareTsomeTbasicTcharacteristicsTofTentrepreneurs?

EntrepreneurshipTisTtheTprocessTofTchangingTideasTintoTcommercialTopportunitiesTandTcreatingTvalue.T
WhileTthereTisTnoTprototypicalTentrepreneur,TmanyTareTgoodTatTrecognizingTcommercialTopportunities
,TtendTtoTbeToptimistic,TandTenvisionTaTplanTforTtheTfuture.

3. WhyTdoTbusinessesTcloseTorTceaseToperating?TWhatTareTtheTprimaryTreasonsTwhyTbusinessesTfail?