The Business Professor
Liquidation Preference and Follow-On Financing
What is a Liqudiation Preference? How does a liquidation preference affect follow-ong financing rounds of equity investment? A liquidation preference provision determines the order in which investors get paid back after a liquidity...
The Business Professor
Marketing - How Do We Judge the Value of New Ideas
This Video Explains Marketing - How Do We Judge the Value of New Ideas
The Business Professor
Participating Preferred Stock
What is Participating Preferred Stock? Participating preferred stock is preferred stock that provides a specific dividend that is paid before any dividends are paid to common stock holders, and that takes precedence over common stock in...
The Business Professor
Understanding Non-Discounted Payback and Accounting Rate of Return Models
In this video, we delve into the concepts of payback and accounting rate of return, two important metrics used in evaluating investment projects. The teacher explains the non-discounted and discounted models of payback, highlighting the...
The Business Professor
Mutually Exclusive Projects
Mutually exclusive projects are projects whereby the acceptance or undertaking of one precludes undertaking the other.
The Business Professor
Preparing a Business for Equity Investment
How do you prepare a business for equity investment? You need to prepare your business to attract equity investors. This includes preparing a robust business plan, having a board of directors in place and brushing up on your presentation...
The Business Professor
Pre-Money and Post-Money - Business Valuation
What is pre-money valuation? What is post-money valuation? Pre-money valuation refers to the value of a company not including external funding or the latest round of funding. Post-money valuation includes outside financing or the latest...
The Business Professor
Return on Investment - Margin and Turnover
Return on Investment or ROI can be calculated using the sales margin divided by the asset turnover.
The Business Professor
Responsibility Centers - Decentralization
Decentralization allows for managerial autonomy in decision making. Responsibility centers are autonomous within the organization. They require a decentralized approach to management accountability and performance.
The Business Professor
Introduction to Managerial Accounting
In this video, the speaker provides an explanation of what managerial accounting is and how it differs from financial accounting. The video highlights the tasks and responsibilities of a managerial accountant, such as preparing financial...
The Business Professor
Venture Capital
What is Venture Capital? Venture capital is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or...
The Business Professor
Venture Capital Method - Business Valuation
What is the Venture Capital method of business valuation? “Venture Capital Method” for determining a company's valuatio involves multiplying the company's projected revenue with its projected margin and industry price-to-earnings to...
The Business Professor
Value of Dividends Method - Business Valuation
What is the Value of Dividends Method of Business Valuation? This method relies on the idea that a stock is only worth what it will provide to investors in future dividends. If a business does not currently distribute dividends, the...
The Business Professor
Business Incubator
What is a Business Incubator? A business incubator is an organization that helps startup companies and individual entrepreneurs to develop their businesses by providing a fullscale range of services starting with management training and...
The Business Professor
Budgeting
Budgeting or setting a budget is the process of allocating resources to future or intended activities. There many types of budget and manners of involvement in the budgeting process.
The Business Professor
Conversion Rights - Preferred Shares
What are Conversion Rights of Preferrred Shareholders? Conversion rights refers to the shareholders ability to convert the preferred shares into common shares. Conversion rights are important as they affect the calculation of other...
The Business Professor
Determining Tax Exemptions
Tax exemptions include specific sources or income that are not subject to taxation. Nonprofit income and many other forms of income are not taxed. Also, deductions reduce otherwise taxable income, while tax credits reduce the amount of...
The Business Professor
Crowdfunding - Explained
What is Crowdfunding? Crowdfunding is the practice of funding a project or venture by raising money from a large number of people, typically via the internet. Crowdfunding is a form of crowdsourcing and alternative finance.
The Business Professor
GE McKinsey Matrix
McKinsey's GE Matrix is a visual tool designed to help portfolio managers determine resource allocation for multi-business portfolios.
The Business Professor
Funding from Equity Investments
What is business funding from equity investors? Equity financing is a popular way for entrepreneurs to raise money for their businesses without acquiring debt. In this form of additional capital, the company owner sells shares to equity...
The Business Professor
First Chicago Method - Business Valuation
What is the First Chicago Method of Business Valuation? The First Chicago Method is a valuation technique used to determine the financial worth of an investment or company by considering projected future cash flows and discounting them...
The Business Professor
Basics in Equity Valuation
There are multipe valuation methods or approaches to valuing the equity of a company. This video introduces the five primary approaches to equity valuation.
The Business Professor
Angel and Venture Capital Investments
What are Angel and Venture Capital Investments? Venture Capitalist vs. Angel Investor: What's the difference? Venture capitalists are business professionals who invest money into startups on behalf of a risk capital company (they use...