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SOLUTION MANUAL For Entrepreneurial Finance, 7th Edition by J. Chris Leach, Ronald W. Melicher, Chapters 1 - 16, Complete With CAPSTONE CASES$13.49
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SOLUTION MANUAL For Entrepreneurial Finance, 7th Edition by J. Chris Leach, Ronald W. Melicher, Chapters 1 - 16, Complete With CAPSTONE CASES
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Course
Entrepreneurial Finance
Institution
Entrepreneurial Finance
SOLUTION MANUAL For Entrepreneurial Finance, 7th Edition
by J. Chris Leach, Ronald W. Melicher, Chapters 1 - 16,
Complete With CAPSTONE CASES
SOLUTION MANUAL For Entrepreneurial Finance, 7th Edition
by J. Chris Leach, Ronald W. Melicher, Chapters 1 - 16,
Complete With CAPSTONE CASES
SOLUT...
INTRODUCTION TO FINANCE FOR ENTREPRENEURS IIll IIll IIll IIll
FOCUS
The purpose of this first chapter is to present an overview of what entrepreneurial finance is about. In
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doing so we hope to convey to you the importance of understanding and applying entrepreneurial
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finance methods and tools to help ensure an entrepreneurial venture is successful.We present a life cycle
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approach to the teaching of entrepreneurial finance where we cover venture operating and financial
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decisions faced by the entrepreneur as a venture progresses from an idea through to harvesting the
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venture.
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LEARNING OBJECTIVES IIll
LO 1.1: Characterize the entrepreneurial process.
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LO 1.2: Describe entrepreneurship and some characteristics of entrepreneurs.
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LO 1.3: Indicate several megatrends providing waves of entrepreneurial opportunities.LO
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1.4: List and describe the seven principles of entrepreneurial finance.
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LO 1.5: Discuss entrepreneurial finance and the role of the financial manager.LO
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1.6: Describe the various stages of a successful venture‘s life cycle.
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LO 1.7: Identify, by life cycle stage, the relevant types of financing and investors.LO
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1.8: Understand the life cycle approach used in this book.
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CHAPTER OUTLINE IIll
1.1 THE ENTREPRENEURIAL PROCESS IIll IIll
1.2 ENTREPRENEURSHIP FUNDAMENTALS IIll
A. Who is an Entrepreneur? IIll IIll IIll
B. Basic Definitions IIll
C. Entrepreneurial Traits or Characteristics IIll IIll IIll
D. Opportunities Exist But Not Without Risks IIll IIll IIll IIll IIll
1.3 SOURCES OF ENTREPRENEURIAL OPPORTUNITIES IIll IIll IIll
A. Societal Changes IIll
B. Demographic Changes IIll
C. Technological Changes IIll
D. Emerging Economies and Global Changes IIll IIll IIll IIll
E. Crises and ―Bubbles‖ IIll IIll
F. Disruptive Innovation IIll
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, 1.4 PRINCIPLES OF ENTREPRENEURIAL FINANCE IIll IIll IIll
A. Real, Human, and Financial Capital must be Rented from Owners (Principle #1)
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B. Risk and Expected Reward go Hand in Hand (Principle #2) IIll IIll IIll IIll IIll IIll IIll IIll IIll
C. While Accounting is the Language of Business, Cash is the Currency (Principle #3)
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D. New Venture Financing Involves Search, Negotiation, and Privacy (Principle #4)
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E. A Venture‘s Financial Objective is to Increase Value (Principle #5)
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F. It is Dangerous to Assume that People Act Against Their Own Self-
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Interests(Principle #6) Il IIll
G. Venture Character and Reputation can be Assets or Liabilities (Principle #7) IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll
1.5 ROLE OF ENTREPRENEURIAL FINANCE
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1.6 THE SUCCESSFUL VENTURE LIFE CYCLE
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A. Development Stage IIll
B. Startup Stage IIll
C. Survival Stage IIll
D. Rapid-Growth Stage IIll
E. Early-Maturity Stage IIll
F. Life Cycle Stages and the Entrepreneurial Process IIll IIll IIll IIll IIll IIll
1.7 FINANCING THROUGH THE VENTURE LIFE CYCLE IIll IIll IIll IIll IIll
A. Seed Financing IIll
B. Startup Financing IIll
C. First-Round Financing IIll
D. Second-Round Financing IIll
E. Mezzanine Financing IIll
F. Liquidity-Stage Financing IIll
G. Seasoned Financing IIll
1.8 LIFE CYCLE APPROACH FOR TEACHING ENTREPRENEURIAL
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FINANCESUMMARY
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DISCUSSION QUESTIONS AND ANSWERS IIll IIll IIll
1. What is the entrepreneurial process?
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The entrepreneurial process comprises: developing opportunities, gathering resources,
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andmanaging and building operations with the goal of creating value.
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2. What is entrepreneurship? What are some basic characteristics of entrepreneurs?
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Entrepreneurship is the process of changing ideas into commercial opportunities and creatingvalue. IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll IIll Il
While there is no prototypical entrepreneur, many are good at recognizing commercial
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opportunities, tend to be optimistic, and envision a plan for the future.
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3. Why do businesses close or cease operating? What are the primary reasons why businessesfail?
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