Exam 2 - 265 Spring 2013

Due Date: 3/20/2014

Note: As a take home exam, you are expected to provide both depth and breadth to your answers.

1. Explain the benefits and costs of using 'The Peoples Bank' vs. Angel investors to fund your entrepreneurial endeavors Your answer should provide a detailed explanation of each type of lending avenue. 25 points

2. Explain the benefits and costs of using venture capitalists to fund your entrepreneurial endeavors. Again, your answer should provide a detailed explanation of venture capitalists. 25 points

3. Ethics plays into the operation of all businesses. John DeLorean found himself in such a situation. Let's go back to the future. Read this article and then answer the following questions. http://eightiesclub.tripod.com/id305.htm (10 points for each part)

a. Describe DeLorean's dreams and aspirations.

b. Investigate the social and political structure in Northern Ireland in 1981.

c. Assuming DeLorean wanted to save the 2,000 jobs at his factory, and that you were him, to what lengths would you have gone to save the company?

d. What other factors led DeLorean to his final attempt to save the company?

e. Discuss the ethics of his actions. In your answer, discuss what would have been more ethical, having 2,000 employees and their families suffer the ravages of unemployment in Northern Ireland in 1981 or his final act to provide funding for the company in hopes of saving the company and jobs?