Final: 19-3-2021

ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD

(Department of Business Administration)
***

ENTREPRENEURIAL FINANCE (9553)

SEMESTER: SPRING 2021

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
 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: Spring, 2021
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 finance. Discuss the entrepreneurial
process with examples. (20)

Q. 2 What are the best practices of high growth and high performance of business in
your view? Discuss with examples. (20)

Q. 3 How creative thinking reflects new insights into existing products, services or
processes? Discuss with examples. (20)

Q. 4 What type of strategies could be adopted by an entrepreneur to tackle the survival

stage of business successfully? Discuss with examples. (20)

Q. 5 Explain joint stock company. Discuss the advantages and disadvantages of joint
stock company with examples. (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

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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:

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. 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:
0. Technological Changes and Entrepreneurship Opportunities
1. Evaluation of Venture Life Cycle
2. Successful Business Plan
3. Competitive Advantages of Intellectual Property
4. Investment Activities Statement of Cash Flow
5. Applications of Activity Ratios
6. Planning for Surviving the Short Run
7. Costs of Financial Capital
8. Financial Alternatives
9. Turnaround Opportunities

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

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 4.1. Progressing through the Venture Life Cycle
4.2. Forms of Business Organizations
4.3. Choosing the Form of Organization
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

Unit 7 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
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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