ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Business Administration)

***

ENTREPRENEURIAL FINANCE (9553)

SEMESTER: AUTUMN 2020

CHECKLIST

This packet comprises the following material:

1. Textbook
2. Course Outline
3. Assignment No. 1 & 2
4. Course Outlines
5. Assignment forms (Two sets)
6. Schedule for Submitting the Assignments

In this packet, if you find anything missing out of the above-mentioned material, please
contact at the address given below: -

The Mailing Officer

Mailing Section, Block No. 28
Allama Iqbal Open University Sector
H-8, Islamabad.
Tel: (051) 9057611, 9057612

(Sardar Ayub Khan)

Course Coordinator

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 ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD
(Department of Business Administration)
***

WARNING
1. PLAGIARISM OR HIRING OF GHOST WRITER(S) FOR SOLVING THE
ASSIGNMENT(S) WILL DEBAR THE STUDENT FROM AWARD OF
DEGREE/CERTIFICATE, IF FOUND AT ANY STAGE.
2. SUBMITTING ASSIGNMENT(S) BORROWED OR STOLEN FROM
OTHER(S) AS ONE'S OWN, WILL BE PENALIZED AS DEFINED IN "AIOU
PLAGIARISM POLICY".

Course: Entrepreneurial Finance (9553) Semester: Autumn 2020

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 Explain the concept of entrepreneurship and its importance. Critically

discuss the entrepreneurial traits with examples. (20)

Q. 2 Explain the concept of risk. How a successful entrepreneur avoid risk to

avail the existed opportunities during the survival business? Discuss and
analyze with examples. (20)

Q. 3 Explain sound business model. Critically discuss the significance of sound

business model with examples. (20)

Q. 4 Explain the concept of venture life cycle. What are the various the sources
of financing during the survival stage of venture business? Discuss and
evaluate with examples.
(20)

Q. 5 Explain venture capital and its importance for finance manager of

entrepreneurship business with examples. (20)

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 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. You are required to prepare two copies of Assignment No. 2.

Submit one copy to your teacher for evaluation and the second copy for
presentation in the classrooms in the presence of your resource persons and
classmates, which will be held at the end of the semester prior to final
examination.

Include the following main headings in your report:

a) Introduction to the topics
b) Important sub-topics
c) Practical aspects with respect to the topic
d) Review of theoretical and practical situations
e) SWOT analysis of the organization with respect to your topic
f) Conclusions and recommendations
g) Annex, if any

You may use transparencies, charts and any other material for effective
presentation. Y 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 top' number 5 (the last digit): -

Topics
0. Importance of Entrepreneurship

1. Venture Life Cycle

2. Negotiation and Privacy in Venture Business

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3. Partnership Business

4. Internal Operating Schedules

5. Profitability Ratios

6. Projected Income Statement

7. Private Financial Markets

8. Financial Distress

9. Estimation the Firm Value

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 ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD
(Department of Business Administration)
***
Course: Entrepreneurial Finance Course Code: 9553
Level: PGD (Entrepreneurship) Credit Hours: 03

Unit 1 The Entrepreneurial Environment

1.1 The Entrepreneurial Process
1.2 Entrepreneurship Fundamentals
1.3 Sources of Entrepreneurial Opportunities
1.4 Entrepreneurial Traits

Unit 2 Introduction to Finance for Entrepreneurs

2.1. Principles of Entrepreneurial Finance
2.2. Role of Entrepreneurial Finance
2.3. Successful Venture Life Cycle
2.4. Financing through the Venture Life Cycle

Unit 3 Developing Business Idea

3.1. Process for Identifying Business Opportunities
3.2. Significance of Sound Business Model
3.3. Screening Venture Opportunities
3.4. Key Elements of Business Plan

Unit 4 Organizing and Financing a New Venture

4.1. Progressing through the Venture Life Cycle
4.2. Forms of Business Organizations
4.3. Choosing the Form of Organization
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Unit 5 Preparing and Using Financial Statements
5.1. Obtaining and Recording the Resources Necessary to Start and
Build New Venture
5.2. Business Assets, Liabilities, and Owner’s equity
5.3. Sales, Expenses, and Profits
5.4. Internal Operating Schedules
5.5. Statement of Cash Flows
5.6. Operating Breakeven Analysis

Unit 6 Evaluating Operating and Financial Performance

6.1. Users of Operating and Financial Performance Measures
6.2. Using Financial Ratios
6.3. Industry Comparable Ratio Analysis

Unit7 Planning for the Future

7.1. Managing Cash Flow
7.1.1. Financial Planning Throughout the VLC
7.1.2. Surviving the Short Run
7.1.3. Projected Monthly Financial Statements
7.1. Types and Costs of Financial Capital
7.2. 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

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 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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