Economics of Enterprise Answers

Enumerate instance when the environment is affected by the production and distributive activities of a firm.what are the positive contributions of the firm in paying the correct amount of taxes due to the government?

Juan Hernandez is a successful business owner. His landscaping business is growing, and a few months ago he decided to bring in somebody to manage his office operations since he had little time to keep on top of that activity. However, this individual can’t seem to make a decision without agonizing about it over and over and on and on. What could Juan do to help this person become a better decision maker?

Suppose you are a monopolist and find that the demand elasticity of your product is different in two markets. What would be your pricing strategy?

Suppose the short run production function can be represented by Q=60000L0^2_1000b^3. Then determine

The level of labor employment that maximizes the level of out put

Total cost =400+20q-2qsquare+2/3qcube, determine the firm's Short run supply curve with its graph

36. What would be an investor’s equity ownership stake in a technology venture given the following information:

• Pre-money valuation: $1.2 million

• Investor share purchase: $300,000

• What is the post-money valuation of this venture?

37. Explain the main differences between debt and equity financing. How does a lender, such as a bank, control the operations of a technology venture to which it lends money?

38. If a technology venture has net profits of $2 million, in an industry where other firms like it have been acquired for amounts equivalent to four times net profit, what is the value of the venture?

31. Explain what is meant by the term “angel investor.” At what stage of development is the technology entrepreneur most likely to attract angel investors?

32. What does the average venture capitalist seek in the technology ventures they invest in?

33. What is the role of a private placement memorandum (PPM) in establishing and promoting a financing deal?

34. Explain how the U.S. Securities and Exchange Commission regulates investing in private technology ventures. What options are available to the technology entrepreneur to seek private equity financing?

35. How does investment in a private equity financing lead to dilution of a founder’s overall percentage of ownership?

26. How can a technology entrepreneur use a vesting schedule to motivate employees?

27. What are the responsibilities of a corporation’s board of directors? How can a technology entrepreneur ensure compliance with statutes governing the corporate entity?

28. Explain the difference between common and preferred stock. What are some potential features that can be added to preferred stock offerings?

29. Explain what it means for a new technology venture to be “overcapitalized.” What are the disadvantages of this?

30. Identify the type of investor who is most likely to invest in pre-start-up technology ventures. Explain how the technology entrepreneur should approach and work with these investors.

21. Define the significance of making a business a “limited liability entity.”

22. Who is responsible for the wrongful acts of a businesses employee? Under what circumstances would be employee be personally liable? Under what circumstances would the owners of the business be personally liable?

23. 5. How does an entrepreneur determine which form of entity to adopt for his or her business?

24. Under what circumstances is it most beneficial for a company to self-fund or obtain debt financing to reach a particular milestone?

25. Describe what is meant by the term “Employee Stock Option plan.” How can an entrepreneur use such a plan to build a new venture?

16. Name three different modes of entry for a technology venture that is contemplating entering a foreign market. What factors should the entrepreneur consider when making this decision?

17. Under what operating system would a technology venture establish standard operating procedures? Why would a venture need to develop such procedures?

18. What is meant by the term “business model”?

19. What are the risks of operating a business as a sole proprietorship?

20. What are the advantages associated with operating a technology venture as a limited liability company?