FEU-Alabang

Senior High School

ONLINE ACTIVITY WEEK 8
Entrepreneurship

CASE STUDY:

Instruction: Write your answer in clean yellow paper/s. Hand Written. NO ERASURES. Kindly Print this
activity including the rubric and have it attached on your answer sheet/s.

Looking for Capital

When Joyce and Phil Abrams opened their bookstore one year ago, they estimated it would take them six
months to break even. Because they had gone into the venture with enough capital to keep them afloat for
nine months,they were sure they would need no outside financing. However, sales had been slower than
anticipated, and most of their funds now have been used to purchase inventory or meet monthly
expenses.On the other hand, the store is doing better each month, and the Abramses are convinced they will
be able to turn a profit within six months.
At present, Joyce and Phil want to secure additional financing. Specifically, they would like to raise
$100,000 to expand their product line. The store currently focuses most heavily on how-to-do-it books and
is developing a loyal customer following. However, this market is not large enough to carry the business.
The Abramses tod, that if they expand into an additional market such as cookbooks, they can develop two
market segments that - when combined - would prove profitable. Joyce is convinced that cookbooks are an
important niche, and she has saved a number of clippings from national newspapers and magazines
reporting that people who buy cookbooks tend to spend more money per month on these purchases than
does the average book buyer. Additionally, customer loyalty among this group tends to be very high.
The Abramses own their entire inventory, which has a retail market value of $280,000. The
merchandise cost them $140,000. They also have at a local bank a line of credit of $10,000, of which they
have used $4,000. Most of their monthly expenses are covered out of the initial capital with which they
started the business [$180,000 in all ; However, they will be out of money in three months if they are not
able to get additional funding.
The owners have considered investigating a number of sources. The two primary ones are a loan
from their bank and a private stock offering to investors. They know nothing about how to raise money,
and these are only general ideas they have been discussing with each other. However, they do have a
meeting scheduled with their accountant, a friend, who they hope can advise them on how to raise more
capital. For the moment, the Abramses are focusing on writing a business plan that spells out their short
business history and objectives and explains how much money they would like to raise and where it would
be invested. They hope to have the plan completed before the end of the week and take it with them to the
accountant. The biggest problem they are having in writing the plan is that they are unsure of how to direct
their presentation. Should they aim it at the banker or a venture capitalist? After the meeting with the
accountant, they plan to refine their plan and direct it toward the appropriate source.
Questions:
1. Would a commercial banker be willing to lend money to the Abramses? How much? On what do
you base your answer?
2. Would this venture have any appeal for a venture capitalist? Why or why not?
3. If you were advising the Abramses, how would you recommend they seek additional capital? Be
complete in your answer.

Rubrics:
Trying to become Beginner Entrepreneur Developing Accomplished Advanced
Entrepreneur Entrepreneur Entrepreneur Entrepreneur
(0) (1)
(5) (8) (10)
Holistic Critical No Answer Consistently does all or Does most or many of the Does most or many of the Consistently does all or
Thinking almost all of the following: following: following: almost all of the following:
Offers biased interpretations Misinterprets evidence, Accurately interprets Accurately interprets
of evidence, statements, statements, graphics, evidence, statements, evidence, statements,
graphics, questions, questions, etc. graphics, questions, etc. graphics, questions, etc.
information, or the points of Fails to identify strong, Identifies relevant Identifies the salient
view of others. relevant counter-arguments. arguments (reasons and arguments (reasons and
Fails to identify or hastily Ignores or superficially claims) pro and con. claims) pro and con.
dismisses strong, relevant evaluates obvious alternative Offers analyses and Thoughtfully analyzes and
counter-arguments. points of view. evaluations of obvious evaluates major alternative
Ignores or superficially Draws unwarranted or alternative points of view. points of view.
evaluates obvious alternative fallacious conclusions. Draws warranted, non- Draws warranted, judicious,
points of view. Justifies few results or fallacious conclusions. non-fallacious conclusions.
Argues using fallacious or procedures, seldom explains Justifies some results or Justifies key results and
irrelevant reasons, and reasons. procedures, explains procedures, explains
unwarranted claims. Regardless of the evidence or reasons. assumptions and reasons.
Does not justify results or reasons, maintains or defends Fair-mindedly follows Fair-mindedly follows where
procedures, nor explain views based on where evidence and reasons evidence and reasons lead.
reasons. self-interest or preconceptions. lead.
Regardless of the evidence or
reasons, maintains or defends
views based on
self-interest or
preconceptions.
Exhibits close-mindedness or
hostility to reason.
Creating, appears happy with status tries to solve problems by generates more than one strives for greater fluency of evaluates to refine work;
imagining and quo; cannot generate any examining alternative original idea, ingenious ideas, flexibility, originality engages discovery,
innovating new ideas possibilities product and solution to and elaboration exploration, and
problems. experimentation to
reach unexpected answers.
Applying past considers each event to be is able to apply some events uses experience from the past uses previous, knowledge, abstracts meaning from an
knowledge and separate with no connections to other contexts. when confronted with a new data, theories or processes to experience, applies it to a new
experience to new to what came before or problem when solve challenges situation and explains
and real life comes afterward. reminded by others how it how it relates to previous
situations relates. experiences.
Format Fails to follow format and Meets format and assignment Meets all formal and
assignment requirements; requirements; partially assignment
incorrect margins, spacing correct margins, spacing, and requirements and evidences
and indentation; neatness of indentations; essay is neat but attention to
paper needs attention. may have some assembly detail; all margins, spacing
errors. Neatness of the paper and
needs attention. indentations are correct; essay
is neat
and correctly assembled with
professional look.
Completeness of None of the sources and Most the citations have the All sources and pictures are
Citation pictures are cited. required elements in the cited.
proper order.
Timeliness Submitted within or more (Excused Students) Submitted by deadline
than 30 minutes after Excused due to medical
deadline or not submitted. condition provided that he/she
(Only students who have have the ff. documents:
medical conditions are  Excuse Letter of the
excused. ) parent with 2 Valid I.
Ds
 Doctor’s Certificate/
Medical Certificate
TOTAL:
 Received by:

MR. ELIEZER JOSHUA MENDOZA GONZALES, CFMP

DATE:

****************************************************
DATE RETURNED:

Adapted and Modified from:

______________________

http://www.napavalley.edu/academics/Instruction/tlc/Documents/Creating%20Grading%20Rubric%20Examples.pdf
https://www.uen.org/rubric/previewRubric.html?id=17988
https://people.richland.edu/fbrenner/syllabus/reflectrubric.html
https://wvde.state.wv.us/osp/GiftedRubric-Benchmarking-3-5-2014.pdf