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Ket [755]
3 years ago
13

Suppose you need $1 million dollars to start your dream business. Describe two ways you would generate the funds needed to start

such a business. Next, discuss any risks or benefits you should be aware of when gathering these funds. Provide examples to support your response.
Business
1 answer:
Masja [62]3 years ago
3 0

Answer:

Following are the two ways to generate the fund and start a new business:

Explanation:

  • Venture capitalist- It would be a type of equity finance in which venture capitalists will in particular aim for just a considerable amount of interest throughout the new startup. It enables you to get control of the mangers and try to get the funds from it by providing venture capital, that is diluting the interest in exchange for the funds necessary to begin the company.  It will also add the knowledge on different issues, which is associated with this form of financing. It also ventures capitalists tend to intervene with leadership and try to control their company to harm the developer.
  • It may also aim to manage the capital via a bank loan, in which it seeking to arrange funds by the use of cash, and these credits will have set loan repayment responsibilities even if it gains no profit, it is extremely risky and also has lower costs, because interest costs are mostly taxable income in design. This problem with both the taking of loans is because it has a fixed obligation and also poses a business liquidity position.
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A mortgage clause that states that the mortgage is due and payable upon certain conditions, such as non-payment is: Select one:
ivolga24 [154]

A mortgage clause that states that the mortgage is due and payable upon certain conditions, such as the non-payment is the option(d) i.e, the Acceleration clause.

<h3>What is a mortgage clause?</h3>

A provision in an insurance policy (such as a fire insurance policy) that allows the designated mortgage to receive payment for property damage or loss.

There are different types of clauses:

  • Acceleration clause
  • Due-On-Sale clause
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If the borrower breaches the conditions of the agreement, an acceleration clause in a mortgage or trust deed states that the entire obligation is payable immediately. Additionally, it will specify the circumstances under which a lender may request full loan payback. For instance, home loans frequently feature an acceleration provision that kicks in after a certain number of missed payments.

Most of the time, it is harmful to accelerate a loan. Typically, it denotes that the borrower has fallen behind on payments or broken the terms of the agreement, and the lender is requiring prompt repayment of the whole loan balance to avoid foreclosure.

To know more about mortgage clause refer to: brainly.com/question/13964240

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8 0
1 year ago
Supply chain management refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their
gizmo_the_mogwai [7]

Answer:

suppliers (or vendors)

Explanation:

Supply chain management refers to how the company manages:

  • the distribution and storing of materials needed to manufacture a product (upstream)
  • the inventory management of materials, components and final goods
  • the distribution of finished goods to final customers using different  downstream channels (wholesalers, retailers, etc.)

4 0
3 years ago
Read and compare the following two scenarios. Explain why the court should or should not pierce the corporate veil in each scena
Sunny_sXe [5.5K]

Answer:

Piercing the Corporate Veil:

1. Smith Services, Inc. and Laker Express:  With the given facts, Smith Services is still in operation by the alter ego, since Smith - the sole owner, has continued to provide trucking services.  Smith should be able to pay for the debts it owed Laker Express.  The question is: why was Smith Services, Inc. dissolved in the first place when the sole owner could continue privately to do the same business?  Is there element of fraud involved, or was it trying to avoid its obligations?  It seems that the dissolution was an effort to avoid liabilities and not because of impaired ability to operate the business because its own debtors did not pay for services on several contracts.  Another question is: during the dissolution or liquidation of Smith Services, Inc. were other creditors not settled and where was Laker Express then?

However, it appears that the dissolution was just to avoid liability, especially the $35,000 debt owed to Laker Express for fuel purchases.

Therefore, in this situation where it seems that the corporate form is ignored, commingling of assets exists, and that Smith Services, Inc. is an instrumentality for Tony Smith, I will advise that the corporate veil be lifted.  Tony Smith should be held liable for the business debts of Smith Services, Inc. because he has continued to use the assets of Smith Services, Inc. to run a sole proprietorship in the same line of business.  However, recourse must be had to the State laws on piercing the corporate veil.

2. Country Contractors, Inc. & Westside Storage of Indianapolis:

Since Country Contractors, Inc and the Westside Storage are based in Indiana, the decision to pierce the corporate veil should be based on the eight factors that are applicable for piercing the veil:  They include: undercapitalization;  absence of corporate records;  fraudulent representation by corporation shareholders or directors;  use of the corporation to promote fraud, injustice or illegal activities;  payment by the corporation of individual obligations;  commingling of assets and affairs;  failure to observe required corporate formalities; or  other shareholder acts or conduct ignoring, controlling, or manipulating the corporate form.

But, the facts in this case do not support that any of the factors had been breached.

So, I do not support that Songers are personally liable for Country's failure to complete its contract.

Explanation:

The corporate veil is an important instrument for protecting shareholders of corporations from being held liable for the liabilities of the corporation in their individual and personal capacities.  Corporate veil ensures that the entity is treated as a separate entity from its shareholders.  It is a protection offered by law to encourage private enterprise and ensure that the debts of corporate bodies are not tagged to the individual shareholders.  It is this veil that ensures the limited liability concept, whereby, the shareholders could only lose their capital contributions in case of business failure or dissolution.

Piercing the corporate veil is a court decision to lift the veil that separates the shareholders of corporation from their shareholders.  There are special factors that must be met for courts to pierce the corporate veil and they do it reluctantly.

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What academic requirements should be completed to be a public relations specialist
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