1. Toward the beginning of this case, the following statement appears: “Almost all small businesses experience cash flow shortfalls.” What is cash flow? Why is cash flow so critical to an entrepreneurial firm’s success? Why do almost all small businesses experience cash flow shortfalls?

2. As explained in this chapter, a firm’s statement of cash flows is divided into three separate activities. Which of the activities from the statement of cash flows would be affected by a firm’s decision to use Fundbox’s service? What are some of the potential effects of a small entrepreneurial firm’s decision to use Fundbox on the components of that firm’s statement of cash flows?

3. If Fundbox’s co-founders (Yuval Ariav, Eyal Shinar, and Tomer Michael) were to ask your advice about the importance of pro forma statements to their firm’s continuing success, what would you say to them? What pro forma statements would you recommend the co-founders develop and why?

4. As a young entrepreneur, what lessons about the financial management of a firm can you learn from the actions taken by the three cofounders of Fundbox?