Discuss how you would expect the financing choices of the following firms to differ and explain the reasons for the differences.
i. An early-stage research and development venture, compared to an established venture that is generating revenue.
ii. A venture with revenues that are growing very rapidly and must expand its working capital base to match, compared to a venture with revenues that are growing at the inflation rate.
iii. A venture that is highly profitable and growing, compared to a venture that is growing at a similar rate but has not yet achieved profitability.
iv. A venture that is organized as a C corporation, compared to one that is organized as an S corporation.
v. A venture that is being undertaken by an entrepreneur who has a significant track record of new venture successes, compared to a venture that is being undertaken by an entrepreneur with no previous new venture experience.
vi. A venture that requires large investment in tangible assets, compared to one whose assets are all intangible.
Source: Smith, J., Smith, R. L., Smith, R., & Bliss, R. (2011). Entrepreneurial finance: strategy, valuation, and deal structure. Stanford University Press.
This essay must be between 1500 to 2000 words.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.