Topic One finance

Question 1

Entrepreneurship

Answer 1

process of changing ideas into commerical opportunities and creating value

Question 2

Entreprneur

Answer 2

individual who thinks, reasons, and acts to convert ideas into commercial opportunities and to create value

Question 3

Entrepreneurial Process

Answer 3

1) develop opportunities
2)gather resources
3)manage and build operations

GOAL = Creating value

Question 4

Traits of a successful entrepreneur

Answer 4

1) See an opportunity
2) Tends to be doggedly optimistic (perhaps even to a fault)
3) Plans to obtain the physical, financial, and human resources needed
for the venture to succeed

Question 5

Traits of an unsuccessful entrepreneur

Answer 5

“are seldom able to see an opportunity, until it ceases to be one”
(Mark Twain)
* “view the glass as being half empty instead of half-full”
* are paralysed by a fear of failure

Question 6

Sources of entrepreneurial Opportunities

Answer 6

1) Societal Changes
2) Technological Changes
3) Demographic Changes
4) Emerging Economies and Global Changes
5) Crises and Bubbles

Question 7

Sucessfull Venture Life Cycle

Answer 7

1. Development Stage
2. Startup Stage
3. Survival Stage
4. Rapid-Growth Stage
5. Early-maturity Stage

Question 8

Financing through the successful venture life cycle

Answer 8

Development Stage
(seed financing)
* Startup Stage
(startup financing)
* Survival Stage
(first-round financing)
* Rapid-Growth Stage
(second-round mezzanine, & liquidity stage financing)
* Early Maturity Stage
(bank loans, issuing bonds, & issuing stock)