SOLUTION
MANUAL
Entrepreneurial Finance, 7th
J. Chris Leach, Ronald W. Melicher
Chapters 1 - 16 With CAPSTONE CASES
,TABLE OF CONTENTS
Part 1: THE ENTREPRENEURIAL ENVIRONMENT.
1. Introduction to Finance for Entrepreneurs.
2. Developing the Business Idea.
Part 2: ORGANIZING AND OPERATING THE VENTURE.
3. Organizing and Financing a New Venture.
4. Preparing and Using Financial Statements.
5. Evaluating Operating and Financial
Performance. Part 3: PLANNING FOR THE
FUTURE.
6. Managing Cash Flow.
7. Types and Costs of Financial Capital.
8. Securities Law Considerations When Obtaining
Venture Financing. Part 4: CREATING AND
RECOGNIZING VENTURE VALUE.
9. Projecting Financial Statements.
10. Valuing Early-Stage Ventures.
11. Venture Capital Valuation Methods.
Part 5: STRUCTURING FINANCING FOR THE GROWING VENTURE.
12. Professional Venture Capital.
13. Other Financing Alternatives.
14. Security Structures and Determining
Enterprise Values. Part 6: EXIT AND
TURNAROUND STRATEGIES.
15. Harvesting the Business Venture Investment.
16. Financially Troubled Ventures: Turnaround
Opportunities? Part 7: CAPSTONE CASES.
Case 1. Eco-Products,
Inc. Case 2. Spatial
,Technology,
, Chapter 1
INTRODUCTION TO FINANCE FOR
ENTREPRENEURS FOCUS
The purpose of this first chapter is to present an overview of what
entrepreneurial finance is about. In doing so we hope to convey to you the
importance of understanding and applying entrepreneurial finance methods
and tools to help ensure an entrepreneurial venture is successful.We
present a life cycle approach to the teaching of entrepreneurial finance
where we cover venture operating and financial decisions faced by the
entrepreneur as a venture progresses from an idea through to harvesting
the venture.
LEARNING OBJECTIVES
LO 1.1: Characterize the entrepreneurial process.
LO 1.2: Describe entrepreneurship and some characteristics of
entrepreneurs. LO 1.3: Indicate several megatrends providing
waves of entrepreneurial opportunities.LO 1.4: List and
describe the seven principles of entrepreneurial finance.
LO 1.5: Discuss entrepreneurial finance and the role of the
financial manager.LO 1.6: Describe the various stages of a
successful venture‘s life cycle.
LO 1.7: Identify, by life cycle stage, the relevant types of
financing and investors.LO 1.8: Understand the life cycle
approach used in this book.
CHAPTER OUTLINE
1.1 THE ENTREPRENEURIAL PROCESS
1.2 ENTREPRENEURSHIP FUNDAMENTALS
A. Who is an Entrepreneur?
B. Basic Definitions
C. Entrepreneurial Traits or Characteristics
D. Opportunities Exist But Not Without Risks
1.3 SOURCES OF ENTREPRENEURIAL OPPORTUNITIES
A. Societal Changes
B. Demographic Changes
C. Technological Changes
D. Emerging Economies and Global Changes
E. Crises and ―Bubbles‖
F. Disruptive Innovation
1
MANUAL
Entrepreneurial Finance, 7th
J. Chris Leach, Ronald W. Melicher
Chapters 1 - 16 With CAPSTONE CASES
,TABLE OF CONTENTS
Part 1: THE ENTREPRENEURIAL ENVIRONMENT.
1. Introduction to Finance for Entrepreneurs.
2. Developing the Business Idea.
Part 2: ORGANIZING AND OPERATING THE VENTURE.
3. Organizing and Financing a New Venture.
4. Preparing and Using Financial Statements.
5. Evaluating Operating and Financial
Performance. Part 3: PLANNING FOR THE
FUTURE.
6. Managing Cash Flow.
7. Types and Costs of Financial Capital.
8. Securities Law Considerations When Obtaining
Venture Financing. Part 4: CREATING AND
RECOGNIZING VENTURE VALUE.
9. Projecting Financial Statements.
10. Valuing Early-Stage Ventures.
11. Venture Capital Valuation Methods.
Part 5: STRUCTURING FINANCING FOR THE GROWING VENTURE.
12. Professional Venture Capital.
13. Other Financing Alternatives.
14. Security Structures and Determining
Enterprise Values. Part 6: EXIT AND
TURNAROUND STRATEGIES.
15. Harvesting the Business Venture Investment.
16. Financially Troubled Ventures: Turnaround
Opportunities? Part 7: CAPSTONE CASES.
Case 1. Eco-Products,
Inc. Case 2. Spatial
,Technology,
, Chapter 1
INTRODUCTION TO FINANCE FOR
ENTREPRENEURS FOCUS
The purpose of this first chapter is to present an overview of what
entrepreneurial finance is about. In doing so we hope to convey to you the
importance of understanding and applying entrepreneurial finance methods
and tools to help ensure an entrepreneurial venture is successful.We
present a life cycle approach to the teaching of entrepreneurial finance
where we cover venture operating and financial decisions faced by the
entrepreneur as a venture progresses from an idea through to harvesting
the venture.
LEARNING OBJECTIVES
LO 1.1: Characterize the entrepreneurial process.
LO 1.2: Describe entrepreneurship and some characteristics of
entrepreneurs. LO 1.3: Indicate several megatrends providing
waves of entrepreneurial opportunities.LO 1.4: List and
describe the seven principles of entrepreneurial finance.
LO 1.5: Discuss entrepreneurial finance and the role of the
financial manager.LO 1.6: Describe the various stages of a
successful venture‘s life cycle.
LO 1.7: Identify, by life cycle stage, the relevant types of
financing and investors.LO 1.8: Understand the life cycle
approach used in this book.
CHAPTER OUTLINE
1.1 THE ENTREPRENEURIAL PROCESS
1.2 ENTREPRENEURSHIP FUNDAMENTALS
A. Who is an Entrepreneur?
B. Basic Definitions
C. Entrepreneurial Traits or Characteristics
D. Opportunities Exist But Not Without Risks
1.3 SOURCES OF ENTREPRENEURIAL OPPORTUNITIES
A. Societal Changes
B. Demographic Changes
C. Technological Changes
D. Emerging Economies and Global Changes
E. Crises and ―Bubbles‖
F. Disruptive Innovation
1
