BBA 324 Entrepreneurial Finance Notes are a 60-page printed book for the GGSIPU BBA Semester 6 elective. They cover all 4 units with 28 solved numerical illustrations and 69 exam questions (40 short, 29 long), and follow the NEP-based BBA syllabus for the batch admitted 2024-25 onwards.
Written by Prateek Talwar, Founder, Unnati Educations · Reviewed by Sheetal Kirola, BBA and B.Ed (DU SOL), 6 years of experience in BBA · Checked against the official BBA Scheme & Syllabus (NEP based, Revised), w.e.f. 2024-25 · Updated 14 October 2026 · Editorial policy
Scheme: NEP-based BBA scheme, w.e.f. 2024-25 | Applies to: batch admitted 2024-25 onwards | Verified against: BBA Scheme & Syllabus (NEP based, Revised), w.e.f. 2024-25
BBA 324 Entrepreneurial Finance at a glance: GGSIPU BBA Sem 6 credits, units and exam pattern
BBA 324 is one of the two Entrepreneurship Development electives in the sixth semester, listed with BBA 322 Sustainable Entrepreneurship. It sits with the other GGSIPU BBA Semester 6 papers.
| Code and title | BBA 324: Entrepreneurial Finance |
|---|---|
| Course and semester | BBA, Semester 6 (Entrepreneurship Development specialisation) |
| Category and credits | Major Elective (Discipline Specific Course) or Minor Elective (Inter-disciplinary Course); 4 credits, L-4, T-0 |
| Marks | 100: 40 internal + 60 end-term |
| Internal 40 marks | Class test 15 + at least two activities (assignment, presentation, viva-voce and similar) 25 |
| End-term pattern | 60 marks; paper-setter instructions not printed in the official PDF |
| Applies to | Batch admitted 2024-25 onwards |
| Units | 4 units, 15 hours each |
| Paired lab | None (theory paper) |
Verify in the official BBA Scheme & Syllabus (NEP based, Revised), w.e.f. 2024-25, printed pages 17 and 154 to 156.
BBA 324 Entrepreneurial Finance Notes unit-wise: 28 solved numericals and 69 exam questions across 4 units
These BBA 324 Entrepreneurial Finance IPU notes follow a venture from idea to exit, the order the syllabus uses. Notes for other papers are under GGSIPU BBA notes.
BBA 324 Unit 1: Introduction to Entrepreneurial Finance & Venture Life Cycle
Ten principles, the five life-cycle stages and their funding, the Business Model Canvas, screening, feasibility and harvest, then projections and cash tools. Pages 6 to 20; 9 sections; 6 solved illustrations plus a 3-year projected income statement; 10 short and 8 long questions.
Quick look: burn rate and cash runway (from page 19)
- Cash ₹48 lakh; monthly expenses ₹10 lakh; monthly revenue ₹4 lakh.
- Net burn = 10 − 4 = ₹6 lakh a month.
- Runway = 48 ÷ 6 = 8 months.
BBA 324 Unit 2: Organizing, Operating, and Funding the Venture
Seed, startup and first-round financing, bootstrapping and business angels; the three statements for a food startup, NovaFresh; operating schedules, break-even and ratios with CAC and LTV. Pages 21 to 34; 7 sections; 4 solved illustrations; 10 short and 7 long questions.
| Ratio | Working | Result |
|---|---|---|
| Current ratio | 37 ÷ 12 | 3.08 : 1 |
| Quick ratio | (37 − 14) ÷ 12 | 1.92 : 1 |
| Debt-equity | 16 ÷ 45 | 0.36 : 1 |
| Return on equity | 9 ÷ 45 × 100 | 20% |
Quick look: NovaFresh Year 2 ratios, ₹ lakh (from page 33)
- Ratio
- Current ratio
- Working
- 37 ÷ 12
- Result
- 3.08 : 1
- Ratio
- Quick ratio
- Working
- (37 − 14) ÷ 12
- Result
- 1.92 : 1
- Ratio
- Debt-equity
- Working
- 16 ÷ 45
- Result
- 0.36 : 1
- Ratio
- Return on equity
- Working
- 9 ÷ 45 × 100
- Result
- 20%
BBA 324 Unit 3: Financial Planning, Capital Costs, and Risk
Planning across the life cycle, monthly projections for a D2C skincare startup, then the price of money: capital types, financial markets, cost of debt and equity, risk and return, and WACC. Pages 35 to 46; 9 sections; 11 solved illustrations; 10 short and 7 long questions.
| Source (₹ lakh) | Weight | Cost | W × K |
|---|---|---|---|
| Equity incl. reserves (60) | 0.60 | 20.0% | 12.00% |
| CCPS (10) | 0.10 | 12.0% | 1.20% |
| Bank loan, after tax (30) | 0.30 | 9.0% | 2.70% |
| Total (100) | 1.00 | 15.90% |
Quick look: WACC of a growth-stage venture (from page 45)
- Source (₹ lakh)
- Equity incl. reserves (60)
- Weight
- 0.60
- Cost
- 20.0%
- W × K
- 12.00%
- Source (₹ lakh)
- CCPS (10)
- Weight
- 0.10
- Cost
- 12.0%
- W × K
- 1.20%
- Source (₹ lakh)
- Bank loan, after tax (30)
- Weight
- 0.30
- Cost
- 9.0%
- W × K
- 2.70%
- Source (₹ lakh)
- Total (100)
- Weight
- 1.00
- Cost
- W × K
- 15.90%
BBA 324 Unit 4: Venture Valuation & Financing for Growth
Pre-money and post-money value, DCF, equity cash flow, and the VC, earnings multiplier and discounted dividends methods. Then VC funds, due diligence, alternative financing and the role of government. Pages 47 to 60; 7 sections; 7 solved illustrations; 10 short and 7 long questions.
Quick look: pre-money and post-money valuation (from page 48)
- An angel invests ₹2 crore for 20%; founders hold 8,00,000 shares.
- Post-money = 2 ÷ 20% = ₹10 crore; pre-money = ₹8 crore.
- Price = ₹100 a share, so 2,00,000 new shares.
BBA 324 exam corner: 40 two-to-five-mark and 29 ten-to-fifteen-mark questions by unit
Each BBA 324 unit ends with questions marked "2–5 marks" and "10–15 marks". The lists give questions only; the answers are in the unit pages.
| Unit | Short (2–5 marks) | Long (10–15 marks) | Solved illustrations |
|---|---|---|---|
| 1 | 10 | 8 | 6 |
| 2 | 10 | 7 | 4 |
| 3 | 10 | 7 | 11 |
| 4 | 10 | 7 | 7 |
| Total | 40 | 29 | 28 |
Exam questions and solved illustrations in the BBA 324 notes, by unit
- Unit
- 1
- Short (2–5 marks)
- 10
- Long (10–15 marks)
- 8
- Solved illustrations
- 6
- Unit
- 2
- Short (2–5 marks)
- 10
- Long (10–15 marks)
- 7
- Solved illustrations
- 4
- Unit
- 3
- Short (2–5 marks)
- 10
- Long (10–15 marks)
- 7
- Solved illustrations
- 11
- Unit
- 4
- Short (2–5 marks)
- 10
- Long (10–15 marks)
- 7
- Solved illustrations
- 7
- Unit
- Total
- Short (2–5 marks)
- 40
- Long (10–15 marks)
- 29
- Solved illustrations
- 28
The BBA 324 notes list 40 short-answer and 29 long-answer exam questions across 4 units, plus 28 solved numerical illustrations.
- Unit 1: Distinguish between an idea and an opportunity. It must be attractive, durable, timely and create value for buyer and seller (page 11).
- Unit 2: What is cash break-even point? (Fixed cost − depreciation) ÷ contribution: 6,00,000 ÷ 200 = 3,000 units (page 31).
- Unit 3: State the CAPM formula for cost of equity. Ke = Rf + β (Rm − Rf) = 7 + 1.5 × 6 = 16% (page 42).
- Unit 4: What is carried interest in a VC fund? The GPs' 20% share of profits above a hurdle rate (page 54).
More practice sits in the BBA 324 important questions.
Who writes and checks the BBA 324 finance notes?
- Prateek Talwar, author: Founder, Unnati Educations; Associate Company Secretary (ACS), ICSI, membership no. 58704, since 15 May 2019; B.Com, University of Delhi (School of Open Learning), 2012. Author bio
- Sheetal Kirola, subject reviewer: BBA and B.Ed, University of Delhi (School of Open Learning); 6 years of experience in BBA. Reviewer bio
These GGSIPU BBA Sem 6 Entrepreneurial Finance notes map to the NEP-based BBA scheme, w.e.f. 2024-25. The 2026-27 edition has 32 sections and 28 rupee numericals. Updated 14 October 2026; see our editorial policy.
The team behind BBA 324 also prepares GGSIPU important questions for every course.
How to write BBA 324 answers: formula, working and interpretation numericals plus ten-mark theory answers
Every BBA 324 numerical in the notes follows one pattern: formula box, working table, answer, then a short "Interpretation". Write all four. It turns a number into a decision: on page 14 a 3.2-year payback looks fine, but an NPV of minus ₹1,52,600 at 20% means the venture is not feasible.
For theory, open with the definition the notes mark "exam-ready", add a comparison table wherever the syllabus pairs two ideas (angels vs venture capitalists, factoring vs receivables lending, book vs market weights), and close with an Indian example from the notes, such as Zoho for bootstrapping or TReDS for invoice discounting.
Two memory aids help: the life-cycle stages run D-S-S-R-E (development, startup, survival, rapid growth, early maturity), and the page 20 "Key Exam Point", profit is not cash, belongs in any answer on cash budgets, burn rate or the cash conversion cycle. In a ten-mark numerical, show every step of the working table; the notes lay out the cash budget, break-even and WACC answers this way so each line can be checked.
Worked example: cost of redeemable debentures (page 41)
- Data: 10% debentures of ₹100, net proceeds ₹96, redeemable at par in 5 years, tax 25%.
- Formula: Kd = [I (1 − t) + (RV − NP) ÷ n] ÷ [(RV + NP) ÷ 2].
- Working: (7.5 + 0.8) ÷ 98 = 8.47%.
- Interpretation: a loss-making startup pays no tax, so it gets no tax shield and its after-tax cost equals the before-tax cost.
Three slips to avoid, each covered in the notes: valuing on accounting cash flow (₹50 lakh on page 51) when equity cash flow is only ₹15 lakh, using pre-tax cost of debt inside WACC, and ignoring future dilution in the VC method. Practise this format on GGSIPU BBA important questions.
BBA 324 and the GGSIPU BBA Sem 6 papers it connects to
BBA 324 has no paired lab; see the GGSIPU BBA syllabus for every semester.
An Entrepreneurship Development major takes both BBA 322 and BBA 324. Where the units overlap:
- BBA 322 Sustainable Entrepreneurship: Unit 1 screening.
- BBA 314 Financial Markets & Institutions: Unit 3 markets and regulators.
- BBA 316 Corporate Accounting: Unit 2 statements.
- BBA 302 Business Policy and Strategy: Unit 1 Business Model Canvas.
- BBA 304 Digital & Social Media Marketing: Unit 2 CAC, LTV and churn.
- BBA 320 WTO and Intellectual Property Rights: Unit 4 IP checks in due diligence.
- BBA 318 Global Competitiveness: Unit 4 foreign investors.
- Also in Semester 6: BBA 306 Organization Effectiveness and Change, BBA 308 Strategic HRM, BBA 310 Advertising & Brand Management, BBA 312 Principles of Event Management.
Implicit vs explicit cost of capital in entrepreneurial finance: excerpt from page 39 of the BBA 324 notes
Excerpt from page 39
Explicit cost
The explicit cost of a source of capital involves an actual cash outflow to the provider of funds: interest, dividends, principal repayment and issue costs. Technically, it is the discount rate that equates the present value of funds received with the present value of payments made, which is the IRR of the financing cash flows.
Examples include interest on bank loans and debentures, dividends on preference and equity shares, and flotation (issue) costs.
Implicit cost (opportunity cost)
Implicit cost involves no actual cash payment. It is the return given up by using funds in one way rather than in the best alternative. Retained earnings carry no dividend, but shareholders lose what they could have earned by investing those dividends elsewhere. A founder who puts in savings and time gives up FD interest or a salary. Equity dilution is also an implicit cost, because giving away ownership today means losing a share of future value.
How the two differ
Explicit cost is paid to the supplier of funds, arises when funds are raised, is measured as the IRR of financing cash flows and is recorded in the books. Implicit cost is the return on the best alternative forgone, arises when funds are used or retained, and never appears in the accounts.
Illustration: implicit cost of trade credit
A supplier offers "2/10, net 30": a 2% discount if paid within 10 days, otherwise the full amount in 30 days. If the startup skips the discount, it is in effect borrowing for 20 extra days at a cost of 2%.
Annual cost = [Discount ÷ (100 − Discount)] × [365 ÷ (Credit days − Discount days)] = (2 ÷ 98) × (365 ÷ 20) = 0.02041 × 18.25 = 37.24% a year.
So "free" trade credit costs over 37%, far more than a bank overdraft at 11 to 12%. The startup should borrow from the bank and take the discount.
Do the BBA 324 notes cover the full GGSIPU syllabus?
Yes. Every official BBA 324 topic has a matching section in the notes; no gaps found.
| Official unit | Official topics | Where in the notes | Status |
|---|---|---|---|
| I | Principles, Venture Life Cycle, Business Models, Screening, Feasibility & Harvest, Financial Plans, Cash Planning Tools | Sections 1 to 9, pp. 7 to 20 | Covered |
| II | Financing Stages, Bootstrapping, Business Angels, Financial Statements, Operating Schedules, Break-even, Ratios | Sections 1 to 7, pp. 22 to 34 | Covered |
| III | Life-cycle Planning, Monthly Projections, Implicit vs Explicit Costs, Financial Markets, Cost of Debt and Equity, Risk and Return, WACC | Sections 1 to 9, pp. 36 to 46 | Covered |
| IV | Valuation Mechanics, DCF, Equity Cash Flow, Valuation Methods, Professional VC, Alternative Financing, Role of Government and Others | Sections 1 to 7, pp. 48 to 60 | Covered |
BBA 324 official syllabus mapped to the notes
- Official unit
- I
- Official topics
- Principles, Venture Life Cycle, Business Models, Screening, Feasibility & Harvest, Financial Plans, Cash Planning Tools
- Where in the notes
- Sections 1 to 9, pp. 7 to 20
- Status
- Covered
- Official unit
- II
- Official topics
- Financing Stages, Bootstrapping, Business Angels, Financial Statements, Operating Schedules, Break-even, Ratios
- Where in the notes
- Sections 1 to 7, pp. 22 to 34
- Status
- Covered
- Official unit
- III
- Official topics
- Life-cycle Planning, Monthly Projections, Implicit vs Explicit Costs, Financial Markets, Cost of Debt and Equity, Risk and Return, WACC
- Where in the notes
- Sections 1 to 9, pp. 36 to 46
- Status
- Covered
- Official unit
- IV
- Official topics
- Valuation Mechanics, DCF, Equity Cash Flow, Valuation Methods, Professional VC, Alternative Financing, Role of Government and Others
- Where in the notes
- Sections 1 to 7, pp. 48 to 60
- Status
- Covered
Official source: BBA (NEP based, Revised) syllabus, batch 2024-25 onwards, printed pages 154 and 155. Every course in GGSIPU notes is checked against its official PDF topic by topic, as BBA 324 is here.
BBA 324 finance notes FAQs
How do I get the full BBA 324 notes?
Send a WhatsApp message to 9899436384 using the Get Full Notes button on this page. The full BBA 324 notes are sold only as a printed book of 60 pages, not as a PDF, and reach you within 5 to 7 days depending on your location.
Is BBA 324 Entrepreneurial Finance a compulsory paper?
No. BBA 324 is an elective in the Entrepreneurship Development specialisation of Semester 6, listed with BBA 322 Sustainable Entrepreneurship. Students take it as a major or minor elective depending on the scheme they choose. The official BBA scheme says electives are offered at the discretion of the college or university, so check your college's list before you plan.
What is the passing mark for BBA 324?
BBA 324 is marked out of 100: 40 internal and 60 end-term. The internal 40 comes from a 15-mark class test and 25 marks for at least two activities. The BBA scheme PDF does not print a pass percentage, so we do not quote one; end-term minimums and re-appear rules are set by Ordinance 11 on ipu.ac.in.
Which BBA 324 unit has the most numericals?
Unit 3 has 11 of the 28 solved illustrations in the BBA 324 notes: a monthly projected income statement, the cost of trade credit, three cost-of-debt cases, preference capital, three cost-of-equity methods, a risk and return table and WACC. Unit 4 comes next with 7, mostly valuation problems such as DCF and the VC method.
Do the BBA 324 notes match the 2024-25 syllabus?
Yes. We compared every topic in the four official units of BBA 324, from the principles of entrepreneurial finance to foreign investors, with the 32 sections of the notes and found no gaps. The official PDF is the NEP-based BBA scheme, w.e.f. 2024-25, for the batch admitted 2024-25 onwards. The full map is in the syllabus section above.
Which BBA 324 formulas should I revise first?
Start with the formulas behind the solved illustrations: break-even units, margin of safety and cash break-even from Unit 2; after-tax cost of debt, CAPM and WACC from Unit 3; post-money value, DCF terminal value and the VC method from Unit 4. From Unit 1, learn the cash budget format, burn rate and the cash conversion cycle.
Get the full BBA 324 Entrepreneurial Finance Notes on WhatsApp
The complete set is Entrepreneurial Finance notes in English, printed as a book; not sold as a PDF. Delivery takes 5 to 7 days, depending on your location.
| Part | Pages | Solved illustrations | Exam questions |
|---|---|---|---|
| Cover and index | 1 to 5 | ||
| Unit 1 | 6 to 20 | 6 | 18 |
| Unit 2 | 21 to 34 | 4 | 17 |
| Unit 3 | 35 to 46 | 11 | 17 |
| Unit 4 | 47 to 60 | 7 | 17 |
| Total | 60 | 28 | 69 |
What is inside the BBA 324 notes book
- Part
- Cover and index
- Pages
- 1 to 5
- Solved illustrations
- Exam questions
- Part
- Unit 1
- Pages
- 6 to 20
- Solved illustrations
- 6
- Exam questions
- 18
- Part
- Unit 2
- Pages
- 21 to 34
- Solved illustrations
- 4
- Exam questions
- 17
- Part
- Unit 3
- Pages
- 35 to 46
- Solved illustrations
- 11
- Exam questions
- 17
- Part
- Unit 4
- Pages
- 47 to 60
- Solved illustrations
- 7
- Exam questions
- 17
- Part
- Total
- Pages
- 60
- Solved illustrations
- 28
- Exam questions
- 69
Order the BBA 324 notes book on WhatsApp (4 units, 60 pages)
Unnati Educations is an independent education provider based in Vikaspuri, Delhi. We are not affiliated with, authorised by, or endorsed by Guru Gobind Singh Indraprastha University (GGSIPU). 'GGSIPU' and 'IPU' are used only to describe the syllabus our notes follow. For official information, visit ipu.ac.in.
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