Questions from Entrepreneurial Finance


Q: Briefly describe Rule 508 of Reg D.

Briefly describe Rule 508 of Reg D.

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Q: Briefly describe the types of exemptions from registration of securities covered under

Briefly describe the types of exemptions from registration of securities covered under Rules 701 and 1001.

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Q: What is meant by the term “blue sky” laws and

What is meant by the term “blue sky” laws and how do these laws apply when issuing securities?

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Q: Why does it matter if an investment is, or is not

Why does it matter if an investment is, or is not, viewed as being a security?

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Q: Identify some of the types of securities that are “exempt”

Identify some of the types of securities that are “exempt” from registration with the SEC.

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Q: What are financial ratios and why are they useful?

What are financial ratios and why are they useful?

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Q: List the major sources of funds typically available to ventures that have

List the major sources of funds typically available to ventures that have successfully entered into their rapid-growth life cycle stage.

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Q: Explain how projected economic scenarios can be used to help forecast a

Explain how projected economic scenarios can be used to help forecast a firm’s sales growth rate.

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Q: What is meant by sweat equity?

What is meant by sweat equity?

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Q: Define required cash and surplus cash. Why does it matter how

Define required cash and surplus cash. Why does it matter how we treat surplus cash for valuation purposes?

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