Reference no: EM131620174

Discussion 1

"Venture Capital Valuation Methods" Please respond to the following:

• Determine the most likely valuation method a venture capitalist would use to value your business venture from Assignment 1. Provide a rationale for your response.

• From the e-Activity, assess the effectiveness of ESOPs to incentivize key employees and whether or not this would be a viable option for your venture. Provide an example to support your response.

e-Activity

Research the Internet or the Strayer Library for the pros and cons of Employee Stock Option Plans, (ESOP). Be prepared to discuss.

Discussion 2

"Professional Venture Capital" Please respond to the following:

• Imagine you are a venture capitalist reviewing the business venture you have developed over this course. From this perspective, describe how you (as the venture capitalist) would conduct the due diligence for the business venture. Then, assess what you may learn from this process.

• Of the steps in the venture capital process, indicate which step may be the most crucial to the majority of entrepreneurs. Assess how entrepreneurs can be prepared to handle this step successfully.

Discussion 3

"The Nature of Organizational Structure." Please respond to the following:

• Discuss how managers use organizational structure as a managerial tool.

• Describe the three (3) primary forms of organizational structure: functional, divisional, and matrix, and discuss the strengths and weaknesses of each.

Discussion 4

"Organizational Issues." Please respond to the following:

• Discuss the organizational characteristics that arise during the four (4) stages of organizational growth. When comparing the characteristics of a company in Stage I with those of the same company in Stage IV (after years of steady growth), is anything important lost? Explain.

• Discuss the key steps in the process of making the transition from an entrepreneurship to a professionally managed firm. Of the key steps in this process, which is the most difficult? Why?

Assignment : More of the Basics and Beyond

Using the same business, you started in Assignment 1, you will continue to build a financial plan for the business.

Write a four (4) page paper in which you:

1. Prepare a pro forma balance sheet for the first twelve (12) months of your business. Include the assumptions on which it is based. Justify your balance sheet.

2. Prepare a pro forma income statement for the first twelve (12) months of your business. Include the assumptions on which it is based. Justify your income statement.

3. Prepare a pro forma cash budget for the first twelve (12) months of your business. Include the assumptions that you have made when creating the budget. Justify your budget.

4. Scrutinize the costs (both tangible and intangible costs) of obtaining financial capital for your business start-up to determine whether the costs justify implementation of the funding source.

Your business is five (5) years old and running profitably. You are now ready to look outward five (5) more years to take the business to the next level.

1. Determine the specific details that would make the equity approach to valuing your business worthwhile. Provide a rationale with your response.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

• Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

• Apply the fundamentals of entrepreneurial financing.

• Perform fundamental analysis of a business.

• Examine the equity approach to valuing a new venture.

• Use technology and information resources to research issues in financing entrepreneurships.

• Write clearly and concisely about financing entrepreneurships using proper writing mechanics.