ENTFIN Exam 2 Conceptual

Which option should Macey choose? Why? (Convertible or Common)

xxx, more ownership and higher return

How has Andy expanded into other businesses?

Pet butler, Star Dogs, Callie Mae’s Bakery, Canine Capital, Bellevue Pet Adventures, Dog Pawz

When should a business request a line of credit from banks?

When (?) are good and the business is doing well

Why do most businesses fail?

They run out of cash

What government aid programs were available to Andy during the COVID pandemic?

Payroll Protection Plan, EIBC Grant, Kansas Grant, Johnson County Grant

What are discretionary earnings?

Shows the actual benefit of the business to the owner

Was Andy able to apply his own pet expenses to discretionary earnings?

Yes

What are some considerations for growth in Andy’s business expansion?

Required capital expenditures, expected value of return, time/destruction from existing businesses, employee requents (?)

Travis discussed how the multifamily construction industry did not experience the negative effects of the 2008 recession until two years later. What was the reason for that?

The backlog delayed the affects

During the negotiations, the representative from BSI demanded they receive $20k in compensation for what?

Goodwill

TCC decided to purchase BSI slely based on their what?

Assets

What were the reasons that TCC decided to target BSI as a potential acquisition?

Strong trade rework, long standing relationships, effective inventory utilization, low operating leverage

Travis Hardwick made a point of discussing BSI’s revenue projections for 2012-2014 and why he didn’t feel BSI spent much time preparing them. This is due to what?

They were whole numbers

What was the book that Travis’ entrepreneurship professor had the class read?

7 habits of highly effective people

What was the line item that caused BSI to be even more negative in 2011?

Corporate fees

What was TCC’s revenue in 2023?

$90M