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

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

Part 1:
THE
ENTRE
PRENE
URIAL
ENVIR
ONME
NT.
1.
Introd
uction
to

Financ
e for
Entrep
reneurs
.
2.

,DevelopingpothepoBusinesspoIdea.
Partpo2:poORGANIZINGpoANDpoOPERATINGpoTHEpoVENTURE.
3.poOrganizingpoandpoFinancingpoapoNewpoVenture.
4.poPreparingpoandpoUsingpoFinancialpoStatements.
5.poEvaluatingpoOperatingpoandpoFinancialpoPerformance.
Partpo3:poPLANNINGpoFORpoTHEpoFUTURE.
6.poManagingpoCashpoFlow.
7.poTypespoandpoCostspoofpoFinancialpoCapital.
8.poSecuritiespoLawpoConsiderationspoWhenpoObtainingpoVenturepoFinancing.
Partpo4:poCREATINGpoANDpoRECOGNIZINGpoVENTUREpoVALUE.
9.poProjectingpoFinancialpoStatements.
10.poValuingpoEarly-StagepoVentures.
11.poVenturepoCapitalpoValuationpoMethods.
Partpo5:poSTRUCTURINGpoFINANCINGpoFORpoTHEpoGROWINGpoVENTURE.
12.poProfessionalpoVenturepoCapital.
13.poOtherpoFinancingpoAlternatives.
14.poSecuritypoStructurespoandpoDeterminingpoEnterprisepoValues.
Partpo6:poEXITpoANDpoTURNAROUNDpoSTRATEGIES.
15.poHarvestingpothepoBusinesspoVenturepoInvestment.
16.poFinanciallypoTroubledpoVentures:poTurnaroundpoOpportunities?
Partpo7:poCAPSTONEpoCASES.
Casepo1.poEco-Products,poInc.
Casepo2.poSpatialpoTechnology,po

,Chapterpo1
INTRODUCTIONpoTOpoFINANCEpoFORpoENTREPRENEURS

FOCUS

Thepopurposepoofpothispofirstpochapterpoispotopopresentpoanpooverviewpoofpowhatpoentrepreneurialpofinancepois
poabout.poInpodoingposopowepohopepotopoconveypotopoyoupothepoimportancepoofpounderstandingpoandpoapplyin
gpoentrepreneurialpofinancepomethodspoandpotoolspotopohelppoensurepoanpoentrepreneurialpoventurepoisposucc
essful.poWepopresentpoapolifepocyclepoapproachpotopothepoteachingpoofpoentrepreneurialpofinancepowherepowepo
coverpoventurepooperatingpoandpofinancialpodecisionspofacedpobypothepoentrepreneurpoaspoapoventurepoprogres
sespofrompoanpoideapothroughpotopoharvestingpothepoventure.

LEARNINGpoOBJECTIVES

LOpo1.1:poCharacterizepothepoentrepreneurialpoprocess.
LOpo1.2:poDescribepoentrepreneurshippoandposomepocharacteristicspoofpoentrepreneurs.
LOpo1.3:poIndicateposeveralpomegatrendspoprovidingpowavespoofpoentrepreneurialpoopportunities
.poLOpo1.4:poListpoandpodescribepotheposevenpoprinciplespoofpoentrepreneurialpofinance.
LOpo1.5:poDiscusspoentrepreneurialpofinancepoandpotheporolepoofpothepofinancialpomana
ger.poLOpo1.6:poDescribepothepovariouspostagespoofpoaposuccessfulpoventure‘spolifepocycle.
LOpo1.7:poIdentify,pobypolifepocyclepostage,potheporelevantpotypespoofpofinancingpoandpoinves
tors.poLOpo1.8:poUnderstandpothepolifepocyclepoapproachpousedpoinpothispobook.

CHAPTERpoOUTLINE

1.1 THEpoENTREPRENEURIALpoPROCESS
1.2 ENTREPRENEURSHIPpoFUNDAMENTALS
A. WhopoispoanpoEntrepreneur?
B. BasicpoDefinitions
C. EntrepreneurialpoTraitspoorpoCharacteristics
D. OpportunitiespoExistpoButpoNotpoWithoutpoRisks
1.3 SOURCESpoOFpoENTREPRENEURIALpoOPPORTUNITIES
A. SocietalpoChanges
B. DemographicpoChanges
C. TechnologicalpoChanges
D. EmergingpoEconomiespoandpoGlobalpoChanges
E. Crisespoandpo―Bubbles‖
F. DisruptivepoInnovation


1

, 1.4 PRINCIPLESpoOFpoENTREPRENEURIALpoFINANCE
A. Real,poHuman,poandpoFinancialpoCapitalpomustpobepoRentedpofrompoOwnerspo(Principlepo#1)
B. RiskpoandpoExpectedpoRewardpogopoHandpoinpoHandpo(Principlepo#2)
C. WhilepoAccountingpoispothepoLanguagepoofpoBusiness,poCashpoispothepoCurrencypo(Principlepo#3)
D. NewpoVenturepoFinancingpoInvolvespoSearch,poNegotiation,poandpoPrivacypo(Principlepo#4)
E. ApoVenture‘spoFinancialpoObjectivepoispotopoIncreasepoValuepo(Principlepo#5)
F. ItpoispoDangerouspotopoAssumepothatpoPeoplepoActpoAgainstpoTheirpoOwnpoSelf-
Interestspo(Principlepo#6)
G. VenturepoCharacterpoandpoReputationpocanpobepoAssetspoorpoLiabilitiespo(Principlepo#7)
1.5 ROLEpoOFpoENTREPRENEURIALpoFINANCE
1.6 THEpoSUCCESSFULpoVENTUREpoLIFEpoCYCLE
A. DevelopmentpoStage
B. StartuppoStage
C. SurvivalpoStage
D. Rapid-GrowthpoStage
E. Early-MaturitypoStage
F. LifepoCyclepoStagespoandpothepoEntrepreneurialpoProcess
1.7 FINANCINGpoTHROUGHpoTHEpoVENTUREpoLIFEpoCYCLE
A. SeedpoFinancing
B. StartuppoFinancing
C. First-RoundpoFinancing
D. Second-RoundpoFinancing
E. MezzaninepoFinancing
F. Liquidity-StagepoFinancing
G. SeasonedpoFinancing
1.8 LIFEpoCYCLEpoAPPROACHpoFORpoTEACHINGpoENTREPRENEURIALpoFINANCEpoSU
MMARY


DISCUSSIONpoQUESTIONSpoANDpoANSWERS

1. Whatpoispothepoentrepreneurialpoprocess?

Thepoentrepreneurialpoprocesspocomprises:podevelopingpoopportunities,pogatheringporesources,poandpo
managingpoandpobuildingpooperationspowithpothepogoalpoofpocreatingpovalue.

2. Whatpoispoentrepreneurship?poWhatpoareposomepobasicpocharacteristicspoofpoentrepreneurs?

Entrepreneurshippoispothepoprocesspoofpochangingpoideaspointopocommercialpoopportunitiespoandpocreatin
gpovalue.p o Whilepotherepoisponopoprototypicalpoentrepreneur,pomanypoarepogoodpoatporecognizingpocom
mercialpoopportunities,potendpotopobepooptimistic,poandpoenvisionpoapoplanpoforpothepofuture.

3. Whypodopobusinessespoclosepoorpoceasepooperating?poWhatpoarepothepoprimaryporeasonspowhypobusinessespfoail?