I have an Entrepreneurial Finance Midterm Exam please answer the following questions:
1- Identify some types of financing that are associated with the following stages of new venture development: Research and Development, Start-up, Early Growth, Rapid Growth and Equity.
2- What is Venture Capital Fund? How is it created and organized? What role does it play in the capital formation process of a start-up venture? How do Venture Capital Funds add value to the business?
3- Define Cost of Capital for a new Enterprise. Describe the various layers of the capital structure and how they can be used to balance the Cost of Capital.
4- How are product- market, organizational, and financial strategies independent? Why is it important for new ventures to consider them at the same time as opposed to one after the other? Give examples
5- Why is forecasting revenue the logical starting point for preparing a new venture’s financial statements?
6- Describe the roles of the income statement, balance sheet, and the statement of cash flow, How do they interact with each other in forecasting process?
7- Describe the Calculation of Cash Flow and cite the numerous uses for it in evaluating financing and reacting to change