The purpose of this assignment is to understand the many factors that influence how businesses are funded.
Directions: Complete the discussion for Parts A and B.
Part A-Initial Post
Think about the factors involved in each of the situations below. Solve the problems by applying the concepts in Chapter 18. Where can your firm find financing?
Write a response to only one of the prompts.
- Your company needs a new copy machine quickly. The high-volume, multifeatured model you want costs $3,000, but your small business doesn’t have that much cash on hand right now and doesn’t want to borrow at this time.
- Your firm has a large payment that needs to be made by next week. The company doesn’t have the cash available at this time. You already have large outstanding loans, so you don’t want to go to the bank. Your stockholders don’t want you to sell more stock because it would dilute their control. You can’t sell bonds by next week. Your inventory is small but your accounts receivable are large. Your firm sells everything on a 30-day open account, and most of your customers pay on time.
- You own a dry cleaning store near an apartment complex. The store attracts a growing number of young patrons who find it convenient to drop off their garments on the way back and forth to work. In fact, business is doing so well, your tiny store is starting to feel cramped. Your next-door neighbor, a donut shop, has just offered to sell you his business and real estate for $100,000. You believe that the location and expansion potential are great, but you don’t have the cash at the moment.
Prepare your initial discussion by providing a detailed response with at least three paragraphs. A paragraph consists of 4 to 6 sentences.
Prepare to defend your answer by incorporating at least two citations (MLA or APA format and one citation can be your textbook).
Respond to two of your peers with at least two paragraphs incorporating : compare, contrast or additional information. No credit given to simply agree with the statements and you must also defend your response and include one citation. Additionally, a paragraph consists of 4 to 6 sentences.
To cite your writing, please see the NOVA library overview of citations (Links to an external site.) with examples of how to cite your work. Also, please see the link in Canvas for the library resource page and online tutoring.
The following suggestions will aid you in successfully composing substantive responses: Compare/contrast the findings of others with your research. Compare how the findings of others relate/add to the concepts learned in the required readings. Share additional knowledge regarding the key topic that relates to the thread. Plagiarism will not be tolerated. Review your posts prior to submission in order to ensure that your sources are properly cited. If you need any assistance in writing or formatting your response, the online tutoring will be able to help you.
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