NEW YORK UNIVERSITY
LEONARD N. STERN SCHOOL OF BUSINESS
B10.3360
Accounting, Tax and Legal Issues for Entrepreneurs
Fall 2003
R 6:00-9:00 PM
Seymour Jones
Office: Tisch Hall 317
Phone: (212) 998-0067
Office Hours: TR 2:00 - 3:30 pm or by appointment
Required Texts:
1. William D. Bygrave, The Portable MBA in Entrepreneurship, 2nd Edition, John Wiley &
Sons, New York, 1997.
2. William D. Bygrave and Dan D'Heilly, The Portable MBA in Entrepreneurship Case Studies,
John Wiley & Sons, New York, 1997.
Course Objectives:
1. The course offers students an opportunity to be exposed to the actual accounting, tax and
legal issues confronted by entrepreneurs. This is particularly useful for students who intend
to start their own business and those who either wish to be part of the management of
entrepreneurial businesses or who intend to incubate new businesses within the structure of
major corporations.
2. To provide practical business tools to start, develop and maintain new entrepreneurially
managed businesses.
3. To understand the psychology and sound financial business practices of the entrepreneurial
world in order to be a successful entrepreneur.
Course Policies:
There will be reading and/pr problem assignments for each class. Please bring the textbook to
class as it will be utilized. The problem assignments should be written out in outline form, as
you should be prepared to discuss them in class or hand in your answers if requested.
The grading in the course will be based on a mid-term and final examination or project, each of
which will count for 50% of your grade. Active participation in the class will reflect favorably
on your term grade.
ASSIGNMENT SCHEDULE
TOPICS/READINGS
PROBLEMS
DATES
9/25/03
The Entrepreneurial Process:
Opportunity Recognition
Entry Strategies
Corporate Intrapreneurship
Portable MBA, Chapters 1,2 and 3
(Guest Speaker: Robert Jones)
Read and be prepared to
discuss John Raughneen, case
study 1 and preparation
questions in Portable Case
Studies.
10/2/03
Business Planning:
Business Plan Basics
Financial Projections and Forecasts
Budgeting: Portable MBA, Chapters
5 and 6
Read and be prepared to
discuss Jack Spratt's
Restaurant, case study 3, and
preparation questions and
Internet Fashion Mall, case
study 4, and preparation
questions in Portable Case
Studies.
10/9/03
Sources of Finance:
Debt, Factoring & Finance
Venture Capital
Basic Issues
Negotiation
Governmental and Other
External Assistance:
Portable MBA,
Chapters 7, 8 and 9
(Guest Speaker:
Dan O'Brien)
Read and be prepared to
discuss Neverfail Computing,
case study 5, and preparation
questions in Portable Case
Studies.
10/16/03
Forms of Organization and Tax Strategies:
Legal and Tax Issues
Use of Consultants
Tax Strategies (Double Taxation)
and Pitfalls (Avoidance vs. Evasion)
Debt vs. Equity
Estate Tax Issues
Negotiating Partnership/Stockholders
Agreements
Hiring Issues:
Portable MBA, Chapter 10
(Guest Speaker: Norm Milefsky)
What are
advantages/disadvantages of
various forms of
organizations?
Prepare break-even analysis,
financial statements and ratio
analysis from material
supplied.
10/23/03
Financial Management:
Working Capital (Cash, Receivables
and Inventory)
Capital Budgeting
Financial Statement Preparation
and Analysis
Break-Even Analysis
Accounting Systems Record keeping
and Internal Controls
Accounting Policies
Material to be supplied
10/30/03
Midterm Examination
11/6/03
Personnel Management:
Developing a Compensation Package
Types of Employee Benefit Plans
Need for Experts
Job Analysis and Job Descriptions
Performance Appraisal
Motivation
Labor Laws:
(Guest Speaker: Joel Levy)
None
11/13/03
Review of Midterm Examination
Computer Systems:
Selection of Software and Hardware
Market Research
Accounting Systems
Business Simulation:
(Guest Speaker: Corrado De Pinto)
None
11/20/03
Buying a Business/Harvesting a Business:
Valuation Techniques
Diligence Reviews and Modeling
Advantages and Disadvantages
Options Methodology: Portable
MBA, Chapter 14
(Guest Speaker: Peter Dolle)
Read and be prepared to
discuss various methods.
12/4/03
Measuring Business Performance:
Entrepreneurial Economics
Defining Survival and Success
Prepare set of do's and don'ts
for successful entrepreneurial
and financial performance.
Entrepreneur's Contribution to
Economic Growth
Methods of Evaluation
Red Flags and Workouts
Performance and Improvement:
PortableMBA, Chapter 15 and
Other Checklists and
Materials
(Guest Speaker: Jeremy
Barberra)
12/11/03
Legal Issues Confronting Entrepreneurs:
Negotiating with Investors
Shareholders and Partnership
Agreements
Intellectual Property
Operating Problems
(Guest speaker: Richard Hendler)
12/18/03
Final Examination
None