Business Essentials (12th Edition) (What's New in Intro to Business)
12th Edition
ISBN: 9780134728391
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 17, Problem 17.7QA
Summary Introduction
To identify: The sources by which a business owner can raise the capital and some of its characteristics, and determine the limitations in the business.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
What is the cheapest source of funds? When all other sources turn down your request for funding, what source is most likely to say yes? Why is this the case? Is the entrepreneur exploiting a personal relationship with this potential source of capital? What are the consequences of using this source of capital if the business goes bankrupt?
If an individual needs funds to finance a small business and does not want to finance the business using loans, what other sources of funding might be available? Briefly describe each potential source of funding and indicate what kind of business enterprise would be the ideal candidate for each source of funding.
Assuming that you are a local investor and would like to open a business in one of the tourist destinations. Do you hire local staff? What sort of training do you have for your staff?
Chapter 17 Solutions
Business Essentials (12th Edition) (What's New in Intro to Business)
Ch. 17 - Prob. 17.1QRCh. 17 - Prob. 17.2QRCh. 17 - Prob. 17.3QRCh. 17 - Prob. 17.4QRCh. 17 - Prob. 17.5QRCh. 17 - Prob. 17.6QACh. 17 - Prob. 17.7QACh. 17 - Prob. 17.8QACh. 17 - Prob. 17.11ACh. 17 - Prob. 17.12A
Ch. 17 - Prob. 17.13ACh. 17 - Prob. 17.14ACh. 17 - Prob. 17.15ACh. 17 - Prob. 17.20EECh. 17 - Prob. 17.21EECh. 17 - Prob. 17.22EECh. 17 - Prob. 17.23CCh. 17 - Prob. 17.24CCh. 17 - Prob. 17.25CCh. 17 - Prob. 17.26CCh. 17 - Prob. 17.27CCh. 17 - Prob. 17.28CCh. 17 - Prob. 17.29CCh. 17 - Prob. 17.30CCh. 17 - Prob. 17.31C
Knowledge Booster
Similar questions
- Describe three elements that can cause uncertainty within an enterprise's cash budget and provide your rationale for including each element. If you were the CFO of a company, what techniques would you use to cope with this uncertainty? How might your coping strategies differ when managing a large company (1,000+ employees) versus a significantly smaller company (100+ employees)?arrow_forwardIf a business firm has assets worth $170,000 and liabilities that total $40,000, what is the value of the owners’ equity?arrow_forwardA small catering business in your city is for sale for $250,000. The company specializes in business luncheons and small social events. The owner has been running the business for four years from her home but is expecting her first child and wants to sell. You will need outside investors to help you purchase the business. Develop questions to ask the owner about the business and its prospects, as well as a list of documents you want to see. What other types of information would you need before making a decision to buy this company? Summarize your findings in a memo to a potential investor that explains the appeal of the business for you and how you plan to investigate the feasibility of the purchase.arrow_forward
- What exactly are capital expenditures, and how do they vary from operating costs?arrow_forwarddiscuss the advantages and disadvantages of debt financing and common stock financing. Then, for your initial post, discuss the following: From the company’s viewpoint, why would it prefer to fund the venture initially with common stock instead of debt?arrow_forwardWhat are the things you found that may be useful to you when you prepare your business plan? What information might help you to prepare your financial projections?arrow_forward
- Explain the role of finance and the different types of jobs in finance. Identify the advantages and disadvantages of different forms of business organization.arrow_forwardYou have just graduated from the MBA program of a large university, and one of your favorite courses was “Today’s Entrepreneurs.” In fact, you enjoyed it so much you have decided you want to “be your own boss.” While you were in the master’s program, your grandfather died and left you $1 million to do with as you please. You are not an inventor, and you do not have a trade skill that you can market; however, you have decided that you would like to purchase at least one established franchise in the fast-food area, maybe two(if profitable). The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is 3 years. After 3 years you will go on tosomething else. You have narrowed your selection down to two choices: (1) Franchise L, Lisa’s Soups, Salads, & Stuff, and (2) Franchise S, Sam’s Fabulous Fried Chicken. The net cash flows shown below include the price you would receive for selling the franchise in Year 3 and the forecast…arrow_forwardWhat factors should businesses consider when determining financing needs to determine whether they can repay the debt? a. Inventory b. Depreciation c. Liquidity d. Equityarrow_forward
- How do business transactions affect a company's cash flow?arrow_forwardAssume that you are the owner of a successful small-to-medium-sized business. You want to grow your business and separate it from your personal finances. What should you do? How will you do it? In regard to dividends and earnings, when and how should you and other owners be rewarded? What are examples of each type of dividend? Why do some large corporations forgo dividends?arrow_forwardImagine you were to start your own business in Kleve, manufacturing small but smart household robots. Assume your business has developed a product currently superior to any competition. You have secured an initial manufacturing facility in Kleve-Kellen, with enough space to expand. However, the manufacturing process is complex. You have already convinced a number of very wealthy investors to meet your financing needs of the next two to three years, so there is no pressing need for going public yet. 1. Why would your business "go global" early on? And how would your startup business be positioned in a global market? 2. Please propose a likely sequence of steps, that your business has to take to achieve this sort of global ambition. Don't just name the steps but also elaborate on business resources you consider essential. 3. Please identify the three biggest challenges you expect to meet in the process of "going global"! Please be as specific as you can be, the more your analysis…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Foundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage LearningFoundations of Business - Standalone book (MindTa...MarketingISBN:9781285193946Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning