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myrzilka [38]
3 years ago
9

Why is it difficult for most small business owners to raise the capital needed to start, operate, or expand their ventures?

Business
1 answer:
Andre45 [30]3 years ago
4 0

Answer:

1. It is not easy to get funds for a start up, as many banks do not consider it as a successful decision to provide loan to a start up, as the feasibility of recovery of loan cannot be identified and guaranteed.

2. Venture capitalists also faces the same issue as of bank, also they are large equity investors and tend to invest in even larger project.

3. Private investors do not blindly invest and rather are more cautious then banks or venture capitalists, as because they do not huge funds to invest, and with less amount of investment they need even higher assurance.

4. Public stock is never available for a start up as for public stock issue you need great credibility, and good previous record.

You might be interested in
Your company is trying to decide which one of two projects it should accept. Both projects have the same start-up costs. Project
lianna [129]

Answer:

a)Project 2 should be selected

b) Project 1 should be selected

Explanation:

We would compute the  Present Value(PV) of the cash inflows from the  the two projects and compare them.

PV of cash inflow = A × (1- (1+r)^(-n)/r

A-cash inflow, r- required return, n - number of years

Project A = 52,000× (1 - 1.15^(-6)/0.15= 196,793.1

Project 2= 39,000 + ((1 - 1.15^-7)/0.15= 201,256.36

Project 2 should be selected

Project 1 = 52,000× (1 - 1.12^(-6)/0.15=213,793.1808

Project 2= 39,000 + ((1 - 1.12^-8)/0.15= 193,737.9509

Project 1 should be selected

3 0
3 years ago
'Nagia Steel Pvt. Ltd.' has divided the whole of its business into five departments. Now the
iVinArrow [24]

Answer:

Generally speaking, there are five functions of Management. They are:

  • Setting Objectives
  • Planning
  • Execution
  • Measurement
  • Control

The two functions of management identifiable from the passage are:

  1. The setting of Objectives and
  2. Control

Explanation:

Objectives in business are multilateral in nature. They speak to

  • Identifying where the company wants to go
  • How the company is going to get there
  • Who the company will need to get there and
  • What the company will need to get there

In the passage above, the company via it's general manager is defining clearly those the company will need and what each person's role is in helping to achieve such objectives

It is not the responsibility of the employee to define his or her own job or objectives. It is the responsibility of Management.

With regard to the second function which we will identify as Control, when management admits employees, there has to be structure otherwise there would be chaos.

It is the function of management to clearly define reporting lines. Who reports to whom? Who is responsible for overseeing who? Who will lead what team? etc.

We see from the passage that the general manager distributed jobs according to each employees ability. And in doing so also defined reporting lines.

This is an example of the Control function of management.

Cheers!

3 0
3 years ago
Staff-level briefings are conducted by the supervisor to introduce co-workers, clarify tasks, define the scope of work, describe
jenyasd209 [6]

Answer:

A)TRUE

Explanation:

This type of briefings are normally conducted at the beginnig of an assignment and if it neccesary at any time that it is neccesary

Other kind of briefings are:

  • Field-Level Briefing
  • Section-Level Briefing
4 0
3 years ago
Rasheed works for Company A, earning $299,000 in salary during 2019. Assuming he is single and has no other sources of income, w
Vaselesa [24]

Answer:

$13,466

Explanation:

For 2019, the wage limit for Social Security tax is $132900

Thus;

Social Security tax $132,900x 6.2% = $8,239.80

Medicare tax = $299,000 x 1.45% = $4335.50

Additional Medicare Tax ($299,000 - $200000) x 0.9% = $891

therefore,

Amount of FICA Tax = $8239.80 + $4335.50 + $891 = $13,466.30 which is approximately $13,466

6 0
3 years ago
True or False? If you have already submitted a resume with references, you do NOT need to bring copies of your resume or referen
fgiga [73]
Your answer would be true hope this helps
3 0
3 years ago
Read 2 more answers
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