StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Discussion- CH5 - Coursework Example

Cite this document
Summary
These include loans, stocks, and equity financing. In equity financing, the entrepreneur uses the real assets of an individual instead of borrowing money from outside sources to start a new business (Sloman and…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.3% of users find it useful
Discussion- CH5
Read Text Preview

Extract of sample "Discussion- CH5"

DD Month YYYY DISCUSSION CH-5 DISCUSSION Small entrepreneurs have three different financial options. These include loans, stocks, and equity financing. In equity financing, the entrepreneur uses the real assets of an individual instead of borrowing money from outside sources to start a new business (Sloman and Sutcliffe, 243). Loan is a type of financial option where an entrepreneur borrows some financial resources from the lending institutions. In stock financing, a person agrees to offer funds for the business on condition that he gets a fair share of the company’s ownership.

The basic advantage of loan is that they are based on the business value and its ability to repay the loan in full. Bank loans are not accompanied by any ownership condition. In addition, the bank personnel are not involved in the running of the business (Sloman and Sutcliffe, 104). The disadvantage of loan is that they are difficult to obtain and also the borrowers need to provide their personal guarantees. The pros of equity financing include no payment of interest. The investors are not paid interests though they will owe the entrepreneur some portion of profit.

Equity financing has no liability. The entrepreneur is not liable and in case of failure, the investor takes the risk. No monthly payments are needed in equity financing. This allows for more money in the business to keep things running. Con associated to equity financing include giving up ownership. This is due to investors owning part of the business (Sloman and Sutcliffe, 303). Pros for stock include them being considered being having potential for higher returns as compared to other types of investments that are used by companies.

Stock is considered to pay dividends. Extra income can be used to buy more shares for the company. Cons for stock include dramatically rise and fall that occur in stock price (Sloman and Sutcliffe, 167). Stack is seen also to have no guaranteed return.Response 1I agree with you that the most common types of financing for small entrepreneurs would be equity financing and debt financing. This is due to unavailability of ready finances. Debt financing allows using the finances and later pay to the lenders.

Selling of shares is convenient to them as the money need not to be repaid.Response 2I equally agree with you that there are so many important skills that managers should have in order to drive success towards the company. The skills that are needed by the managers including ability to be a leader, positive relationship with employees, proper planning, proper delegation of duties, effective communication and accounting and proper financing gears a business towards achieving its set goals and objectives.

ReferenceSloman, J. and Sutcliffe, M. Financing small businesses. New York: Prentice Hall, 2008. Print.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Discussion- CH5 Coursework Example | Topics and Well Written Essays - 250 words”, n.d.)
Discussion- CH5 Coursework Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/business/1677900-discussion-ch5
(Discussion- CH5 Coursework Example | Topics and Well Written Essays - 250 Words)
Discussion- CH5 Coursework Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/business/1677900-discussion-ch5.
“Discussion- CH5 Coursework Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/business/1677900-discussion-ch5.
  • Cited: 0 times

CHECK THESE SAMPLES OF Discussion- CH5

Statistics Assignment

This means that the proportion of improvement of those that participated in the discussions and group exercise overlap the proportion of improvement of those that did not.... This means that participating in group discussions and exercises is beneficial in reducing chronic back… The interval, ....
4 Pages (1000 words) Essay

The Iodine Number of an Oil or Fat

Fats are generally solids and oils are generally liquids at ordinary room temperatures.... The characteristics of fats and oils are related to the properties of the fatty acids that they contain.... The larger the number of carbon atoms,… Oils contain a higher percentage of unsaturated fatty acids than fats....
4 Pages (1000 words) Essay

Discussion 2, ch 15

Choose two of the tribes described at the beginning of Chapter 15.... Explain who they were, where they lived, what they did for sustenance and why you chose the particular tribes that you did.... You should answer this with a minimum of 4-6 sentences. One of the tribes in… America was the Washo tribe which was located at the Great Basin and made up of several enegetic men and women who form part of the Hokan family of languages....
2 Pages (500 words) Assignment

CH8 disscussion questions

However, it is impossible to eliminate praises for ability form the classroom environment.... For instance, there are tasks that need no preparation and that are completed on the… These tasks reveal students' abilities not their effort and it is inevitable that students will have to complete such tasks from time to time....
2 Pages (500 words) Essay

Discussion- ch1

Measuring the economy helps the government get to know the qualitative gains made, how much income was earned, how much savings were made, the costs incurred, capital employed, and the… Measuring the economy also helps the government to know the underperforming sectors and performing sectors of the economy and this helps when drafting the budget estimates....
1 Pages (250 words) Coursework

Discussion- ch9

The other employee motivation theories involve; equity theory, expectancy theory, Herzberg's two factor theory, McGregor's theory x and theory y, theory z, and variations on theory z.... the motivation theories… Motivation is illustrated as the inner force, which directs the behavior of an individual towards achieving a desired goal....
2 Pages (500 words) Coursework

The Ontology of the Work of Art

The assignment entitled "The Ontology of the Work of Art" points out that Roman Ingarden is one of the leading followers of phenomenological ontology, which attempts to determine what the ontological structure and status of objects of various types must be.... nbsp;… Through each of these topic criticisms, there have essentially been double-sided issues, which either promote or negatively affect its theme....
9 Pages (2250 words) Assignment

Tasks in Chemistry

The assignment "Tasks in Chemistry " describes different tasks and activities connected with chemistry learning.... This paper outlines the parameters that gave rise to the separation, using the HPLC simulation software, data collected over two days from an HPLC analysis.... hellip; Using the HPLC simulation software currently available in the practical folder on Blackboard find the optimum parameters to effect separation of the following mixture of compounds using the Agilent Zorbax column as the stationary phase: acetophenone, p-chlorophenol, benzonitrile, p-xylene, p-dichlorobenzene, ethylbenzene, bromobenzene, toluene, and n-butylbenzene....
5 Pages (1250 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us