BU121 Lecture Notes - Lecture 10: Variable Cost, Accounts Payable, Accounts Receivable
Document Summary
Bu121 lecture #10: entrepreneurial finance cash vs profit contribution analysis: cash breakeven new venture financing cash budgeting cash burn new venture valuation strategies for growth/exit. Meeting customer needs providing quality products and value encouraging innovation and creativity gaining employee commitment creating a distinct competitive advantage. 1. real, human, and financial capital must be rented from owners. 6. it is dangerous to assume that people act against their own self-interests: venture character and reputation can be assets or liabilities. Breakeven calculation let x represent the number of units of sales where total revenue = total costs (survival revenue) breakeven/survival revenue is reached when contribution remaining from the sale covers cash fixed costs. Or when unit costs aren"t available, contribution can be calculated as a percentage (contribution margin: let x represent $ volume of sales where total revenue = total costs, where.
