Statements Media

Two young entrepreneurs are considering forming a business that provides new and innovative forms of advertising. Students are required to evaluate the venture, including whether the available financing is sufficient or if additional financing will be needed. Students are required to perform both a qualitative and quantitative analysis of the proposed business. Qualitatively, students must evaluate the partners' relevant capabilities as well as the business concept itself for potential success. Quantitatively, students must prepare a projected cash budget and projected financial statements for the first year of operations to gain a better understanding of the operation's cash needs and potential for financial success. This quantitative analysis will also provide students with answers to the partners' ability to make withdrawals from the business, the need for financing and the level of additional financing required, if any.