In: Operations Management
Choose and explain one of the debt financing methods mentioned in the textbook. What are the strengths and weaknesses of the method that you've chosen, and in what situations does it work best? Give an example of a company that uses this strategy. Be sure to support your ideas and arguments with evidence and details.
Funding Financing-Venture capital assumes a significant job in financing endeavors and unsafe endeavors. Likewise it is a significant wellspring of financing of new and youthful undertakings just as high and new innovation based endeavors. It is a long haul and illiquid venture.
So Venture capital is the speculation of long tern value money. Funding encourages value cooperation, long haul speculation and guarantees proceeding with interest of the investors.
Presently we will find out about the phases of investment financing-
1. As Equity
2. As contingent advance
3. As salary notes
4. through convertible debentures and convertible inclination shares.
Quality of Venture capital financing-
1. Helps little subordinate units to update their innovations.
2. give money related help to individuals who wish to begin their own endeavor.
3. Gives manangement and showcasing mastery.
4. It centers around development
Shortcomings of Venture capital financing-
1. Subsidizing issues financial speculators regularly move enormous totals of cash.
2. Restricted dynamic capacities
3. Present high dangers