Questions from Entrepreneurial Finance

Q: What is the purpose of the U.S. Bankruptcy Code

What is the purpose of the U.S. Bankruptcy Code? What are some of the characteristics of ventures that use instead of private liquidation?

Q: What is meant by loan default? Also, describe (

What is meant by loan default? Also, describe (a) an acceleration provision and (b) a cross-default provision.

Q: What is foreclosure?

What is foreclosure?

Q: What is an employee stock option plan (ESOP)? How is

What is an employee stock option plan (ESOP)? How is an ESOP used to buy out a venture?

Q: Describe the terms (a) “control premium” and

Describe the terms (a) “control premium” and (b) “illiquidity discount” when discussing possible external or outside buyers of a venture.