ADMN 224

-

Entrepreneurship

LOs 7 & 8

-

Clarks Sporting Goods

Students are required to submit responses to the questions as

sociated with the

Clarks

Sporting Goods case located on page 267

of the textbook.

Questions:

1)

Estimate how much money Dave will

need from outside sources to start his

business.

Include first two months of operating expenses (i.e., rent, telephone,

utilities

, advertising

).

(3

marks)

2)

Assuming Dave receives start

-

up financing from a bank, as calculated in

question 1, will he require an

operating

line of credit during the first four months

of operations? If so, how much? (10

marks)

3)

What factors should Dave consider when deciding to pursue debt or equity

sources of funding to get started?

(3

marks)