Notes: Market size potential refers to the expected size of the industry revenues at maturity; venture growth rate and market share are expressed in terms of the vent revenues. These industry/market items, as well as the items under each of the other three factors, are discussed in the chapter. Details Figure 29 Classification Guidelines for Completing the VOS Indicator TM 1. Following is financial information for three ventures: a. Calculate the ROA for each firm. b. Which venture is indicative of a strong entrepreneurial venture opportunity? c. Which venture seems to be more of a commodity-type business? d. How would you place these ventures on a graph similar to Figure 2.10? e. Use the information in Figure 2.9 relating to pricing/profitability and "score" each venture in terms of potential attractiveness. \begin{tabular}{|l|l|l|l|} \hline After-tax margins & >20% & 10%20% & 3.0 turnover & 1.03.0turnover & 25% & 10%25% & 4 ye: \\ \hline \begin{tabular}{l} Rate of return \\ \hline \end{tabular} & >50% per year & 20%50%peryear & 5 ye: \\ \hline Founder's control & Majority & High minority & Lowmino: \\ \hline \end{tabular} Management team \begin{tabular}{|l|l|l|l|} \hline & Industry/market & General/general & Little; \\ \hline Experience/expertise & & \\ \hline \end{tabular} Notes: Market size potential refers to the expected size of the industry revenues at maturity; venture growth rate and market share are expressed in terms of the vent revenues. These industry/market items, as well as the items under each of the other three factors, are discussed in the chapter. Details Figure 29 Classification Guidelines for Completing the VOS Indicator TM 1. Following is financial information for three ventures: a. Calculate the ROA for each firm. b. Which venture is indicative of a strong entrepreneurial venture opportunity? c. Which venture seems to be more of a commodity-type business? d. How would you place these ventures on a graph similar to Figure 2.10? e. Use the information in Figure 2.9 relating to pricing/profitability and "score" each venture in terms of potential attractiveness. \begin{tabular}{|l|l|l|l|} \hline After-tax margins & >20% & 10%20% & 3.0 turnover & 1.03.0turnover & 25% & 10%25% & 4 ye: \\ \hline \begin{tabular}{l} Rate of return \\ \hline \end{tabular} & >50% per year & 20%50%peryear & 5 ye: \\ \hline Founder's control & Majority & High minority & Lowmino: \\ \hline \end{tabular} Management team \begin{tabular}{|l|l|l|l|} \hline & Industry/market & General/general & Little; \\ \hline Experience/expertise & & \\ \hline \end{tabular}