BUE 130 FINANCIAL MANAGEMENT FOR ENTREPRENEURS PRESENTED AND APPROVED: MAY 4, 2012 EFFECTIVE: FALL 2012-13
Prefix & Number BUE130 Course Title: Financial Management for Entrepreneurs Purpose of this submission: Update to new form New Change/Updated Retire If this is a change, what is being changed? Update Prefix Course Description (Check all that apply) Title Course Number Format Change Credits Prerequisite Competencies Textbook/Reviewed Competencies-no changes needed Does this course require additional fees? No Yes If so, please explain. Is there a similar course in the course bank? No Yes Formerly ENT130 Articulation: Is this course or an equivalent offered at other two and four-year universities in Arizona? No Yes (Identify the college, subject, prefix, number and title: ASU, NAU Elective; UA Non Transferable Is this course identified as a Writing Across the Curriculum course? No Yes Course Textbook, Materials and Equipment Textbook(s) Current edition Software/ Equipment Title Author(s) Publisher Entrepreneurial Finance Leach & Melicher South Western Cengage Course Assessments Description of Possible Course Assessments (Essays, multiple choice, etc.) Exams standardized for this course? Midterm Final Other (Please specify): Where can faculty members locate or access the required standardized exams for this course? Text exercises & problems, exams, projects, reports, case studies Are exams required by the department? No Yes If Yes, please specify: Student Outcomes: Identify the general education goals for student learning that is a component of this course. Check all that apply: 1. Communicate effectively. a. Read and comprehend at a college level. b. Write effectively in a college setting. Method of Assessment
2. Demonstrate effective quantitative reasoning and problem solving skills. Quiz, exam, exercise or project questions. 3. Demonstrate effective qualitative reasoning skills. 4. Apply effective methods of inquiry. a. Generate research paper by gathering information from varied sources, analyzing data and organizing information into a coherent structure. b. Employ the scientific method. 5. Demonstrate sensitivity to diversity a. Experience the creative products of humanity. b. Describe alternate historical, cultural, global perspectives. Office of Instruction Use only: CIP Code: ONET Code: Minimum Qualifications:
COURSE INFORMATION Initiator: Candace Hofstadter Date of proposal to Curriculum Sub-Committee: May 4, 2012 Effective Semester/Year Fall 2012 Spring Summer Prefix & Number: BUE130 Full Title: (100 character limit) Financial Management for Entrepreneurs Short Title: (30 character limit) Financial Management Catalog Course Description: Explore sources of money and financing for starting and growing a business including debt and equity. The tools and methods used for making sound business decisions will be examined, including financial products and services available from commercial banks, suppliers and the Small Business Administration. SUN Course Number: Credit Hours: 3 Lecture Hours: 3 Lab Hours: 0 Prerequisite(s) ACC125 Co-requisite(s) Intended Course Goals By the end of the semester, students will be able to: 1. Discover how and where to obtain financing to start, build and grow an entrepreneurial enterprise. 2. Manage the financial and capital resources of an entrepreneurial enterprise. 3. Create and forecast the financial statements of the enterprise and perform Financial Analysis of them utilizing financial ratios. 4. Find and attract private financial sources of funding for an entrepreneurial enterprise 5. Secure financing from angel investors and venture capitalists for the entrepreneurial enterprise. 6. Secure financing through other financial intermediaries such as the government and banking institutions for the entrepreneurial enterprise.
Course Competencies and Objectives By the end of the semester, students will be able to: Competency 1 Identify and define the systems & tools of Entrepreneurial Finance Objective 1.1 Explain the importance of Entrepreneurial enterprises in our economy Objective 1.2 Describe the seven principles of entrepreneurial finance Objective 1.3 Illustrate the role of the financial manager in the enterprise Objective 1.4 Identify the life cycle stages of financing an Enterprise Objective 1.5 Understand the life cycle approach to an entrepreneurial enterprise Competency 2 Use both qualitative and quantitative tools to assess a new enterprise s feasibility Objective 2.1 Analyze the process of moving an idea to financial business plan Objective 2.2 Identify the components of a sound business model Objective 2.3 Perform a SWOT analysis on the enterprise Objective 2.4 Create the questions for a feasibility assessment of the enterprise Objective 2.5 Formulate quantitative criteria to assess a new venture s ability to attract external financing Competency 3 Seek and find Financing for a new enterprise in the start-up phase Objective 3.1 Differentiate between the different forms of organizing a business, on the basis of taxation, liability and financial capital needed. Objective 3.2 Distinguish the characteristics of a Limited Liability Company (LLC) from the other organizational forms Objective 3.3 Describe the benefits, risks and financial implications of the various organizational forms Objective 3.4 Explain how financing is obtained via financial bootstrapping Objective 3.5 Explain how financing is obtained through Angel investors Objective 3.6 Compare & analyze the various first-round financing sources Competency 4 Create accounting and financial statements that monitor the enterprise s financial progress Objective 4.1 Describe the process for obtaining and recording the resources needed for the early-stage enterprise. Objective 4.2 Prepare a Balance Sheet and Income statement for the enterprise Objective 4.3 Create a Cost of Production and Inventory schedule and explain their importance Objective 4.4 Explain the use of internal statements as they relate to formal financial statements Objective 4.5 Prepare a Cash Flow statement and explain how it monitors a venture s cash position Objective 4.6 Perform operating breakeven analysis utilizing EBDAT breakeven revenues Objective 4.7 Perform operating breakeven analysis utilizing NOPAT breakeven revenues Competency 5 Evaluate the enterprise s Financial Performance through all life-stages. Objective 5.1 Interpret and use financial performance measures by life cycle stage Objective 5.2 Calculate and use Financial ratios to monitor a venture s performance Objective 5.3 Calculate and explain how cash burn rate and liquidity ratios are used Objective 5.4 Describe the use of and value of conversion period ratios for an enterprise Objective 5,5 Explain the use of leverage ratios by lenders and creditors Objective 5.6 Identify and calculate the measures of profitability used by equity and venture investors to assess an enterprise Competency 6 Create cash budgets and project financial statements for short-term & long-term Objective 6.1 Construct a Cash Budget for the Enterprise Objective 6.2 Describe how projected statements of cash flow relate to cash budgets and why they are important to the Entrepreneur Objective 6.3 Quantify and clarify a sustainable growth rate for an enterprise Objective 6.4 Identify and specify the quantity and timing of additional funds needed to support the enterprise s sales forecasts Objective 6.5 Connect the sales growth rate rates to the amount and timing of additional funds needed Objective 6.6 Perform the percent-of-sales method for preparing financial plans Competency 7 Characterize financial markets and describe how one obtains and pays for financial capital Objective 7.1 Describe the basic characteristics and parts of financial markets Objective 7.2 Relate low-risk securities to their price and risk-free borrowing rates
Objective 7.3 Explain how corporate debt prices reflect higher interest rates when the borrower may default Objective 7.4 Analyze the investment risk of a particular enterprise Objective 7.5 Estimate the cost of publicly traded equity capital (common stock) Objective 7.6 Estimate the cost of private equity capital and venture capital Objective 7.7 Explain how capital costs combine into a weighted average cost of capital Competency 8 Discover government, bank and private sources of funding for the enterprise. Objective 8.1 Identify relevant sources of debt financing Objective 8.2 Find and describe government grants and loan guaranties for new enterprises Objective 8.3 Describe funding options available from the SBA and for minority owners Objective 8.4 Explain sources of funding from Microcredit programs Objective 8.5 Differentiate between commercial bank loans and leases Objective 8.6 Describe factor financing & compare it to receivable financing through a bank Objective 8.7 Compare & Contrast venture capital lending versus bank lending