1) What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations?
This chapter discussed what entrepreneurs must be prepared for financially when choosing to start their own business. There are three financial statements that entrepreneurs focus on and they include the balance sheet, the income statement, and the cash-flow statement. Entrepreneurs have to specifically focus on budgeting. Starting a new company is a challenge and it is important to be aware of where you are investing your money. Because of this, there are key budgets which include the operating budget, the cash-flow budget, and the capital budget. The operating budget has a sales forecast and an estimation of operating expenses. The cash-flow budget gives an overview of of the inflows and outflows of cash during a specific period. Lastly, the capital budget helps entrepreneurs make decisions regarding investments.
2) Identify at least one part of the reading that was confusing to you.
I like how the author divided the chapter to make it easier to understand, especially since this was a chapter based on financial information and many equations were discussed. I found it easy to understand because of how he broke up the chapter.
3) If you were able to ask two questions to the author, what would you ask? Why?
If I could ask the author two questions I would want to know how some of these formulas were proposed. I would also ask him if he thinks financial prospects are changing for entrepreneurs.
4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?
I don't think the author was wrong about anything. He backed up all of his points with examples and analyses so I found that I agreed with everything.
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