TEST BANK FOR ENTREPRENEURIAL FINANCE 7TH EDITION J CHRIS LEACH ALL CHAPTERS 1-16 VERIFIED A+

TEST BANK
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bf For Entrepreneurial Finance, 7th Edition
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bf by J. Chris Leach, Ronald W. Melicher, Chapters 1 - 16,
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Complete With CAPSTONE CASES
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,TABLE OF CONTENTS bf bf bf




Part 1: THE ENTREPRENEURIAL ENVIRONMENT.
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1. Introduction to
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Finance for Entrepreneurs.
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2. Developing the Business Idea.
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Part 2: ORGANIZING AND OPERATING THE VENTURE.
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3. Organizing and Financing a New Venture.
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4. Preparing and Using Financial Statements.
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5. Evaluating Operating and Financial Performance.
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Part 3: PLANNING FOR THE FUTURE.
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6. Managing Cash Flow.
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7. Types and Costs of Financial Capital.
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8. Securities Law Considerations When Obtaining Venture Financing.
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Part 4: CREATING AND RECOGNIZING VENTURE VALUE.
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9. Projecting Financial Statements.
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10. Valuing Early-Stage Ventures.
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11. Venture Capital Valuation Methods.
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Part 5: STRUCTURING FINANCING FOR THE GROWING VENTURE.
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12. Professional Venture Capital.
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13. Other Financing Alternatives.
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14. Security Structures and Determining Enterprise Values.
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Part 6: EXIT AND TURNAROUND STRATEGIES.
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15. Harvesting the Business Venture Investment.
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16. Financially Troubled Ventures: Turnaround Opportunities?
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Part 7: CAPSTONE CASES.
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Case 1. Eco-Products, Inc.
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Case 2. Spatial Technology,
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,Chapter 1 bf




INTRODUCTIONbfTObfFINANCEbfFORbfENTREPRENEURS

FOCUS

Thebfpurposebfofbfthisbffirstbfchapterbfisbftobfpresentbfanbfoverviewbfofbfwhatbfentrepreneurialbffinancebfisbfabout.bfInbfd
oingbfsobfwebfhopebftobfconveybftobfyoubfthebfimportancebfofbfunderstandingbfandbfapplyingbfentrepreneurialbffinancebf
methodsbfandbftoolsbftobfhelpbfensurebfanbfentrepreneurialbfventurebfisbfsuccessful.fbWebfpresentbfabflifebfcyclebfapproac
hbftobfthebfteachingbfofbfentrepreneurialbffinancebfwherebfwebfcoverbfventurebfoperatingbfandbffinancialbfdecisionsbffac
edbfbybfthebfentrepreneurbfasbfabfventurebfprogressesbffrombfanbfideabfthroughbftobfharvestingbfthebfventure.

LEARNINGbfOBJECTIVES

LObf1.1:bfCharacterizebfthebfentrepreneurialbfprocess.
LObf1.2:bfDescribebfentrepreneurshipbfandbfsomebfcharacteristicsbfofbfentrepreneurs.
LObf1.3:bfIndicatebfseveralbfmegatrendsbfprovidingbfwavesbfofbfentrepreneurialbfopportunities.fLb Obf1.
4:bfListbfandbfdescribebfthebfsevenbfprinciplesbfofbfentrepreneurialbffinance.
LObf1.5:bfDiscussbfentrepreneurialbffinancebfandbfthebfrolebfofbfthebffinancialbfmanager.fbLObf1.
6:bfDescribebfthebfvariousbfstagesbfofbfabfsuccessfulbfventure‘sbflifebfcycle.
LObf1.7:bfIdentify,bfbybflifebfcyclebfstage,bfthebfrelevantbftypesbfofbffinancingbfandbfinvestors.fbLObf1.
8:bfUnderstandbfthebflifebfcyclebfapproachbfusedbfinbfthisbfbook.

CHAPTERbfOUTLINE

1.1 THEbfENTREPRENEURIALbfPROCESS
1.2 ENTREPRENEURSHIPbfFUNDAMENTALS
A. WhobfisbfanbfEntrepreneur?
B. BasicbfDefinitions
C. EntrepreneurialbfTraitsbforbfCharacteristics
D. OpportunitiesbfExistbfButbfNotbfWithoutbfRisks
1.3 SOURCESbfOFbfENTREPRENEURIALbfOPPORTUNITIES
A. SocietalbfChanges
B. DemographicbfChanges
C. TechnologicalbfChanges
D. EmergingbfEconomiesbfandbfGlobalbfChanges
E. Crisesbfandbf―Bubbles‖
F. DisruptivebfInnovation


1

, 1.4 PRINCIPLESbfOFbfENTREPRENEURIALbfFINANCE
A. Real,bfHuman,bfandbfFinancialbfCapitalbfmustbfbebfRentedbffrombfOwnersbf(Principlebf#1)
B. RiskbfandbfExpectedbfRewardbfgobfHandbfinbfHandbf(Principlebf#2)
C. WhilebfAccountingbfisbfthebfLanguagebfofbfBusiness,bfCashbfisbfthebfCurrencybf(Principlebf#3)
D. NewbfVenturebfFinancingbfInvolvesbfSearch,bfNegotiation,bfandbfPrivacybf(Principlebf#4)
E. AbfVenture‘sbfFinancialbfObjectivebfisbftobfIncreasebfValuebf(Principlebf#5)
F. ItbfisbfDangerousbftobfAssumebfthatbfPeoplebfActbfAgainstbfTheirbfOwnbfSelf-
Interestsfb(Principlebf#6)
G. VenturebfCharacterbfandbfReputationbfcanbfbebfAssetsbforbfLiabilitiesbf(Principlebf#7)
1.5 ROLEbfOFbfENTREPRENEURIALbfFINANCE
1.6 THEbfSUCCESSFULbfVENTUREbfLIFEbfCYCLE
A. DevelopmentbfStage
B. StartupbfStage
C. SurvivalbfStage
D. Rapid-GrowthbfStage
E. Early-MaturitybfStage
F. LifebfCyclebfStagesbfandbfthebfEntrepreneurialbfProcess
1.7 FINANCINGbfTHROUGHbfTHEbfVENTUREbfLIFEbfCYCLE
A. SeedbfFinancing
B. StartupbfFinancing
C. First-RoundbfFinancing
D. Second-RoundbfFinancing
E. MezzaninebfFinancing
F. Liquidity-StagebfFinancing
G. SeasonedbfFinancing
1.8 LIFEbfCYCLEbfAPPROACHbfFORbfTEACHINGbfENTREPRENEURIALbfFINANCEfbSUMMA
RY


DISCUSSIONbfQUESTIONSbfANDbfANSWERS

1. Whatbfisbfthebfentrepreneurialbfprocess?

Thebfentrepreneurialbfprocessbfcomprises:bfdevelopingbfopportunities,bfgatheringbfresources,bfandfm
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ngbfandbfbuildingbfoperationsbfwithbfthebfgoalbfofbfcreatingbfvalue.

2. Whatbfisbfentrepreneurship?bfWhatbfarebfsomebfbasicbfcharacteristicsbfofbfentrepreneurs?

Entrepreneurshipbfisbfthebfprocessbfofbfchangingbfideasbfintobfcommercialbfopportunitiesbfandbfcreatingfvb alue.b f
Whilebftherebfisbfnobfprototypicalbfentrepreneur,bfmanybfarebfgoodbfatbfrecognizingbfcommercialbfopportunitie
s,bftendbftobfbebfoptimistic,bfandbfenvisionbfabfplanbfforbfthebffuture.

3. Whybfdobfbusinessesbfclosebforbfceasebfoperating?bfWhatbfarebfthebfprimarybfreasonsbfwhybfbusinessesffb ail?