(Submit in printed, not-hand-written, hard-copy form during class)

1. Who can get a SRED tax credit? Why is the SRED so important to Canadian Tech companies?

Any Canadian TAXPAYER who performs qualified research and experimental development work.
(This includes individual people, CCPCs, Non-CCPCs, and public companies. CCPCs (eg startups) get refundable credits while others get tax credits to offset taxes that are otherwise payable. The tax credit amounts may vary among entities, but all taxpayers get some form of support.)
It provides a source of cash - even to startups because it is a refundable credit (receivable in CASH). It is "free" money that does not have to be repaid - it's better than a loan or equity. It reduces a company's R&D costs thereby improving not only cash flow but the bottom line. It flows to the income statement by increasing profits and on the balance sheet it improves assets (cash) and retained earnings. It's also important because if companies don't apply for it, they are losing out and their competitors will benefit. The SRED contribution in Canada is more than $2Bn - close to 10% of ALL R&D expenditures.

2. Make up a cap table for your project teams. Show the startup stage, two rounds of financing and the exit.
   (Note: Don't say, "founders" - show each shareholder by name and his/her equity interest)

This should look like:

See sample albeit with fewer rounds. Must show names of various shareholders, percentages, market caps, and dollars raised.

3. What are some reasons for identifying risk factors in your business?

To make contingency plans, to be aware of possible problems, to warn investors (and yourself) about potential downside risks.

4. Using the concept of Product Life Cycles, what is the best time for your company to introduce new products in your product line?

When you are at the top of the life cycle curve, i.e. when you are generating maximum profits.

5. Using the 4 P's of marketing, how might you extend a product's life without making any changes to the product itself?

Thinking about the non-Product, P, i.e. Promotion, Placement and Price - you could for example engage in special promotions, or try different channels of distribution or drop the price. When you are in the "decline" stages, you can afford to spend a little more or take a lower margin to squeeze out some more sales. You can do this as long as you're profitable or until you next generation of product comes along.

6. In Janice Cheam's talk, what are some key things that if she was starting her business now she'd be glad to know?

As per her comments.....