Exam 12: Entrepreneurial Finance

An existing and expanding business will find it harder to raise equity capital from private or institutional sources.

List the factors that can affect the availability of various financing options and their suitability and cost.

Short-term debt is most often used by a business for working capital and is repaid out of the proceeds of its sales.

_____ is the art and science of quantifying value creation,slicing the value pie,and managing and covering financial risk.

Long-term borrowings are used for working capital or to finance the purchase of property or equipment.

Transactions cash balances Plus Accounts receivable Plus Inventory Plus Other operating current assets (e.g. ,prepaid expenses) Less Accounts payable Less Taxes payable Less Other operating current liabilities (e.g. ,accrued expenses) This formula is used to calculate ____.

Increasing sales and healthy profitability ____.

Mezzanine or bridge capital is available at the _____ stage of development.

A new or existing business needs to obtain both equity and debt financing if it is to have a sound financial foundation.

What are the three central issues in entrepreneurial finance?

According to the principles of entrepreneurial finance,cash sooner is preferred to cash later.

Short-term debt is incurred for _____ months or less.

Short-term debt is incurred for what time frame?