SHEPHERDVILLE COLLEGE

Talojongon, Tigaon, Camarines Sur

College of Education Department
Second Semester
AY 2022 – 2023
_______________________________________________________________________________________

THE ENTREPRENEURAL MIND

FINANCING THE VENTURE

Module 2 - SAQ Answer Sheets

MIDTERM

Name: JEHOSHAPHAT P. SABA Date: 03-17-2023

Course/Year: BPE 2O

STUDENT ASSESSMENT QUESTIONS (20 pts.) Good luck!

1. Explain Capital, its types and importance in business. 10 pts.

The total amount of financial resources needed to create goods or services is referred to as capital in the
business world. These cash may be employed to start up operations, cover on-going costs, or develop and
extend the company. The different types of capital include:
 Financial
 Human
 Natural
The majority of firms utilize money to expand. A corporation may expand thanks to capital, which gives it the
resources it needs to increase sales. A business may require more funds to buy new buildings or hire new
employees if it grows physically, adopts new technology, or relocates.

2. Identify the sources of capital to start a business. 5 pts.

 Personal Savings
 Liquidation of Assets
 Borrow Money from Family and Friends
 Personal Loan
 Business Loan from a Bank
 Invoice Financing
 Purchase Order Financing
 Equity Financing

3. Briefly explain the concept of Initial Public Offering (IPO) and its process. 5 pts.
A previously unlisted firm can sell new or existing securities and make them available to the public
for the first time through the initial public offering (IPO) process. A firm is regarded as private
before an Initial Public Offering (IPO) if it has fewer shareholders and only accredited investors,
such as angel investors, venture capitalists, and high-net-worth people, as well as early investors
(for instance, the founder, family, and friends). Following an IPO, the issuing firm is listed publicly
on a reputable stock market.
 SHEPHERDVILLE COLLEGE
Talojongon, Tigaon, Camarines Sur
College of Education Department
Second Semester
AY 2022 – 2023
___________________________________________________________________________________

THE ENTREPRENEURAL MIND

FINANCING THE VENTURE

Module 2 - SAQ Answer Sheets

MIDTERM

Name: JEHOSHAPHAT P. SABA Date: 03-17-2023

Course/Year: BPE 2O

EVALUATION (10 pts.)

Answer the question below.

1. Explain the importance of proper management of working capital in business.

The link between a company's short-term assets and short-term obligations is represented by working
capital management. It tries to make sure that a business can cover its regular running costs while
also allocating the resources of the business in the most profitable way. Effective working capital
management may benefit your company's overall financial health. By efficiently managing your
working capital, you're ensuring that your company has enough cash flow to support operations and
pay short-term expenses.