Questions from Entrepreneurial Finance

Q: What is meant by net cash build and net cash burn?

What is meant by net cash build and net cash burn?

Q: Describe the differences between variable expenses and fixed expenses.

Describe the differences between variable expenses and fixed expenses.

Q: Define the term EBITDA.

Define the term EBITDA.

Q: From an agency relationship standpoint, describe the possible types of problems

From an agency relationship standpoint, describe the possible types of problems or conflicts of interest that could inhibit maximizing a venture’s value.

Q: What is a venture’s contribution profit margin?

What is a venture’s contribution profit margin?

Q: Define the term EBDAT.

Define the term EBDAT.

Q: Describe the meaning of EBDAT breakeven and survival revenues.

Describe the meaning of EBDAT breakeven and survival revenues.

Q: Describe and illustrate how an EBDAT (survival) breakeven chart is

Describe and illustrate how an EBDAT (survival) breakeven chart is constructed.

Q: What is meant by breakeven drivers? Identify two important drivers affecting

What is meant by breakeven drivers? Identify two important drivers affecting the amount of revenues needed for ventures to break even.

Q: What is accrual accounting? What are generally accepted accounting principles (

What is accrual accounting? What are generally accepted accounting principles (GAAP)?