Exam 13: Entrepreneurial Finance

What are the three central issues in entrepreneurial finance?

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 ________.

Banks are typically willing to provide long-term debt to new ventures if the business has a substantial asset base of property and equipment.

All the underlying characteristics and assumptions used by popular financial theories and models do not hold up for start-ups,and even up to an IPO.

Earnings before interest and taxes (EBIT) Less Tax exposure (tax rate times EBIT) Plus Depreciation,amortization,and other non-cash charges Less Increase in operating working capital Less Capital expenditures This formula is used to calculate ________.

What funding structure provides a sound financial foundation for growth without excessive dilution of an entrepreneur's equity?

Short-term debt is incurred within what time frame?

Venture capital investors normally ________ their business loans to the loans provided by the bank or other financial institutions.

How is the increase in net total operating capital calculated?

What leads and drives the financial strategy framework?

Long-term borrowings mature in more than _________.

For lending purposes,commercial banks generally regard subordinated debt as what?