Question

In: Finance

Suppose you were given an opportunity to own a business of your choosing. First, briefly describe...

Suppose you were given an opportunity to own a business of your choosing. First, briefly describe your business; then explain the most efficient way to raise capital to either start or expand your business. Provide support for your response.

Please Note- You just need to choose one way, and explain why the option selected is most efficient. Also, state whether capital is for starting or expanding the business.

Solutions

Expert Solution

Ans: About Business: My business idea is about opening an ice cream parlour. For this occasion one big space required like stall. Ambience should be like ioce cream parlour. it sould be rented. Two membes I and my friend have to start this business. Ice cream of several flavors are to be sold. The location of business need to be located at near by bus stand or near universcity area. As it can increase our selling units per day. In this business investment is not so much required. It is a small business. infrastructure of ice cream parlor should be completed to support day today operation.

Funding for Business :

  • Initially it a small scale business and we two friend will act like partnership business partner. we will invest from our own. profit ratio will be the deciding factor of income sharing.
  • Why sould we consider self funding, because we want oto start it quickly and it is matter of good faith.
  • We will understand our plan and do action accordingly. No tension of external pressure.
  • Risk management will be done easily with good understanding
  • Capitral contribution ratio is the funding factor of our initial stage.
  • after gaining success in business or after some year we can go for bank loan, which can be repaid with interest prevailing in the market.
  • For that we must have good track record of revenue and credit rating score.
  • So this is our business and funding sources for Business.

Related Solutions

Suppose you are choosing between milk and cookies. If the opportunity cost of cookies in terms...
Suppose you are choosing between milk and cookies. If the opportunity cost of cookies in terms of milk decreases, then the budget curve will: shift inward rotate inward. shift outward rotate outward
a. Briefly evaluate the four factors to consider in choosing a legal structure for your business...
a. Briefly evaluate the four factors to consider in choosing a legal structure for your business b. Business is defined as an ORGANISED and PURPOSEFUL human activity designed to CREATE VALUE for others and is intended to continue to provide such value overtime as going concern. Discuss c. With examples, very briefly differentiate between opportunity versus Necessity Entrepreneurship d. very briefly discuss how you would evaluate a business opportunity
You are given a budget of $1,000,000 to start your own business. What type of business...
You are given a budget of $1,000,000 to start your own business. What type of business would you start? Please state which form of business ownership would you use? State the reason(s) why. Provide the background information and an estimated budget for your business.
In your own words, briefly explain what is meant by Social Psychology.  If you were to...
In your own words, briefly explain what is meant by Social Psychology.  If you were to research any question in the field of Social Psychology, what question would you seek to answer, and how might this differ from the questions asked by a related field, like Sociology or Personality Psychology?  What research methods would you use to address your question?  Explain why you chose this method and discuss ethical concerns associated with using this method.  Support your answer with scholarly...
For this problem you will be creating your own linear model for data of your choosing....
For this problem you will be creating your own linear model for data of your choosing. Please do the following: • Find a data set that you believe to be linear. You can measure and collect your own data or search the internet. Be sure to cite where you get your data. • Plot the data on a coordinate plane. Include a link to this graph in your submission of this assignment. • Approximate a slope and intercept for your...
Describe the three streams and the window of opportunity in your own words then give an...
Describe the three streams and the window of opportunity in your own words then give an example of the three streams and Window of Opportunity from your own life.
If you were to start your own business (please state what business), how might you use...
If you were to start your own business (please state what business), how might you use Net Present Value to help you make a decision if this project is worthwhile. What numbers/inputs would you require to determine the NPV? TO RESPOND TO THIS QUESTION IF MY CHOICE OF THE BUSINESS IS REAL ESTATE. HOW CAN I RESPOND TO THESE QUESTION?
If you were to start your own business, which business entity structure would you choose? Justify...
If you were to start your own business, which business entity structure would you choose? Justify why your chosen structure is the best organizational form. Explain the following business structures: sole proprietorship, partnership, LLC, and a corporation. In your analysis address the following for each business structure: Steps to form Personal liability for owners Taxation Advantages and disadvantages Your paper must be three to five pages
A business opportunity has presented itself to you and one of your classmates. Your opportunity is...
A business opportunity has presented itself to you and one of your classmates. Your opportunity is to enter the fast-growing craft beer industry. Your projected sales in the first year is 7500 kegs. Your projected growth rate is 5 percent. Entering the business will require $35,000 of net working capital. Total fixed costs are $95,000. Variable production costs are $32 per keg and keg sales are priced at $56 each. The equipment to begin production is $175,000. The equipment will...
A business opportunity has presented itself to you and one of your classmates. Your opportunity is...
A business opportunity has presented itself to you and one of your classmates. Your opportunity is to enter the fast growing craft beer industry. Your projected sales in the first year is 7500 kegs. Your projected growth rate is 8 percent. Entering the business will require $35,000 of net working capital. Total fixed costs are $95,000. Variable production costs are $30 per keg and keg sales are priced at $55 each. The equipment to begin production is $175,000. The equipment...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT