ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Business Administration)

***

Course: Entrepreneurial Finance (9553) Semester: Spring, 2025

Level: PGD (Entrepreneurship)

Total Marks: 100 Pass Marks: 50

ASSIGNMENT No. 1

Note: Attempt all the questions. Examples with special reference to Pakistan will car more credit.

Q. 1 Describe the stages of the entrepreneurial process. How does each stage contribute to the overall success of a venture? (20)

Q. 2 Analyze the impact of technological advancements on entrepreneurial opportunities in the modern business landscape. (20)

Q. 3 Discuss the importance of cash flow management in entrepreneurial finance. What techniques can entrepreneurs use to ensure positive cash flow? (20)

Q. 4 Discuss the pros and cons of equity financing versus debt financing for startups. In what scenarios might one be more advantageous than the other? (20)

Q. 5 Discuss the role of SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) in the screening process. How can it provide valuable insights for entrepreneurs? (20)

ASSIGNMENT No. 2

Total Marks: 100 Pass Marks: 50

This assignment is a research-oriented activity. You are required to submit a term paper and present the same in the workshop prior to the final examination. Presentation component is compulsory for all students. You will have to participate in the activity fully and prepare a paper of about 15 to 20 pages on the topic allotted to you. Presentation in the classrooms in the presence of your resource persons and classmates is mandatory in workshop, which will be held at the end of the semester prior to final examination. Discussion must be professional. Never discuss politicians and political parties or political activities in the academic activities.

Include the following main headings in your report:

• Introduction to the topics
• Important sub-topics
• Practical aspects with respect to the topic
• Review of theoretical and practical situations
• SWOT analysis of the organization with respect to your topic
• Conclusions and recommendations
• Annex, if any

You may use transparencies, charts and any other material for effective presentation. You are also required to select one of the following topics according to the last digit of your roll number. For example, if your roll number is D-3427185 then you will select topic number 5 (the last digit):

Topics:

• Break-even Analysis
• Components of Business Model
• Financing through the Venture Life Cycle
• Harvesting Venture Investment
• Private Workouts and Liquidation
• Profitability ratios
• Projecting Financial Statements
• Public Limited Company
• Sources of Entrepreneurial Opportunities
• Surviving of business in the Short Run

COURSE OUTLINE

Course: Entrepreneurial Finance Course Code: 9553

Level: PGD (Entrepreneurship) Credit Hours: 03

Unit 1 The Entrepreneurial Environment

• • The Entrepreneurial Process
  • Entrepreneurship Fundamentals
  • Sources of Entrepreneurial Opportunities
  • Entrepreneurial Traits

Unit 2 Introduction to Finance for Entrepreneurs

• • Principles of Entrepreneurial Finance
  • Role of Entrepreneurial Finance
  • Successful Venture Life Cycle
  • Financing through the Venture Life Cycle

Unit 3 Developing Business Idea

• • Process for Identifying Business Opportunities
  • Significance of Sound Business Model
  • Screening Venture Opportunities
  • Key Elements of Business Plan

Unit 4 Organizing and Financing a New Venture

• • Progressing through the Venture Life Cycle
  • Forms of Business Organizations
  • Choosing the Form of Organization

Unit 5 Preparing and Using Financial Statements

• • Obtaining and Recording the Resources Necessary to Start and Build New Venture
  • Business Assets, Liabilities, and Owner’s equity
  • Sales, Expenses, and Profits
  • Internal Operating Schedules
  • Statement of Cash Flows
  • Operating Breakeven Analysis

Unit 6 Evaluating Operating and Financial Performance

• • Users of Operating and Financial Performance Measures
  • Using Financial Ratios
  • Industry Comparable Ratio Analysis

Unit 7 Planning for the Future

• • Managing Cash Flow
    • Financial Planning Throughout the VLC
    • Surviving the Short Run
    • Projected Monthly Financial Statements
  • Types and Costs of Financial Capital
  • Securities Law Considerations When Obtaining Venture Financing

Unit 8 Creating and Recognizing Venture Value

8.1. Projecting Financial Statements

8.2 Valuing Early-Stage Ventures

8.3 Venture Capital Valuation Methods

8.4. Structuring Financing for the Growing Venture

8.4.1 Professional Venture Capital

8.4.2 Other Financial Alternatives

8.4.3 Security Structures and Determining Enterprise Values

Unit 9 Exit and Turnaround Strategies

9.1 Harvesting the Business Venture Investment

9.1.1 Planning an Exit Strategy

9.1.2 Valuing the Equity or Valuing the Enterprise

9.2 Financially Troubled Ventures: Turnaround Opportunities

9.2.1 Venture Operating and Financial Review

9.2.2 The Troubled Venture and Financial Distress

9.2.3 Resolving the Troubled Financial Distress Situations

92.4 Private Workouts and Liquidation

Recommended Textbook:

Leach and Melicher, “Entrepreneurial Finance” (Latest edition). South Western Cengage Learning.

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