In: Finance
Discuss how you would expect the financing choices of the
following firms to differ and explain the reasons for the
differences. (Include international and Caribbean examples where
possible) ( for example internal or external, traditional non
traditional, bank loan angel investors, personal saving etc)
i. A venture that is considered a family firm, compared to a
non-family firm.
ii. A venture that belongs to the food industry that is a sole
trading firm, compared to a partnership firm.
iii. An early-stage research and development venture, compared to
an established venture that is generating revenue.
iv. A venture with revenues that are growing very rapidly and must
expand its working capital base to match, compared to a venture
with revenues that are growing at the inflation rate.
v. A venture that is highly profitable and growing, compared to a
venture that is growing at a similar rate but has not yet achieved
profitability.
vi. A venture that is being undertaken by an entrepreneur who has a
significant track record of new venture successes, compared to a
venture that is being undertaken by an entrepreneur with no
previous new venture experience.
Source: Smith, J., Smith, R. L., Smith, R., & Bliss, R. (2011).
Entrepreneurial finance: strategy, valuation, and deal structure.
Stanford University Press.
This essay must be between 1500 to 2000 words. The paper should
consist of an introduction, body, and conclusion, be doubled-spaced
and follow APA 6th edition referencing style.