Hello expert please provide this answer Question:What guidelines should entrepreneurs follow iffriends and family choose to invest in theirbusinesses?Debt Financing:The entrepreneur arranges the funds for thecompany's operations by taking debt or a loanfrom the financial institution, friends, or family,which we call debt financing. In this process, theentrepreneur pays back the interest on theamount taken.

1. Guidelines for Entrepreneurs When Accepting Investments from Friends and Family.Entrepreneurs may…

Answered: Question: What guidelines should…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 1bM

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Discuss the implications of financing through debt as they compare to financing through equity. What are the pros and cons of each method? Which method would you use to raise capital for your business?
What types of information about a business would bankers want before extending a loan?
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what are some ways to make it easier for both parties when friends/family provide equity financing?
Investment interest expense does not include: Multiple Choice O O interest expense from loans to purchase municipal bonds. interest expense from loans to purchase U.S. savings bonds and interest expense from loans to purchase corporate bonds. interest expense from loans to purchase corporate bonds. Help interest expense from loans to purchase stocks. Save & Exit interest expense from loans to purchase corporate bonds and interest expense Submit
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You will discuss credit from the lenders point of view. What factors do lenders consider when making new real estate loans? When banks make loans they are taking a risk based on several factors including creditworthiness. You will discuss how banks determine the creditworthiness of borrowers. Topic: Creditworthiness Respond to the following questions: . How does the bank determine if a borrower is credit worthy? . Does this analysis guarantee that the borrower will be able to pay off the loan as agreed? • What happens if their credit scores are below 500? What alternatives would someone with no credit history have? .

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