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myrzilka [38]
2 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]2 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
Chang Industries has 2,000 defective units of product that have already cost $14 each to produce. A salvage company will purchas
sleet_krkn [62]

Answer:

$20,000 income

Explanation:

<em>Computation</em>

Particulars                                                                 Amount

Sale Value of corrected product=                         $42,000.00

(2,000 * 21)

Less : Costs of Correction =                                   ($12,000.00)

(2000 * 6)

Less : Opportunity costs - Salvage Value Lost =  <u>($10,000.00)</u>

(2,000 * 5)

Incremental Revenue=                                             <u>$20,000.00</u>

4 0
3 years ago
On January​ 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years or 50,0
Aneli [31]

Answer:

Accumulated depreciation= $276,000

Explanation:

Giving the following information:

On January​ 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years. The estimated residual value is $ 10,000.

Depreciable value= 700,000 - 10,000= 690,000

Straight-line depreciation= 690,000/5= $138,000

Accumulated depreciation= 138,000*2= $276,000

5 0
3 years ago
What elements of the marketplace in which megatech operates led the firm to believe that project management would improve its op
Mariana [72]

   International competitors suddenly appear in greater numbers as a result of the mentioned changes in trade agreements, Megatech now needs to contend with more and new competitors.

<h3>In terms of the marketplace there are three primary types of companies?</h3>

There are three main categories of businesses in the market

international businesses, multinational businesses, and transnational businesses.

International businesses only import and export; they do not have any investments abroad.

        Although multinational corporations have offices or facilities in several different nations, each one operates independently, basically as a separate legal entity.

Organizationally, multinational corporations are far more complex. It is a commercial enterprise that runs big facilities, conducts business internationally, and does not identify with any particular nation as its national home. A multinational company's ability to maintain a higher level of responsiveness to the local market is one of its key advantages.

To know more about Marketplace, visit

brainly.com/question/14887488

#SPJ4

3 0
1 year ago
6. Trade deficit and the currency depreciation Which approach to the relationship between exchange rates and the trade balance p
emmasim [6.3K]

Answer:

The absorption approach

Explanation:

The absorption approach with respect to the balance of payments derives that a balance of trade of a country will only better if the output of the company in terms of goods and services rises by more than its absorption or utilization

Here, the absorption refers to incurred expenditure by the residents who are domestic on the goods and services.

Hence, according to the given situation, the appropriate option is absorption approach

5 0
3 years ago
All of the following assets will be included as intangible assets on the balance sheet exceptA. patents.B. copyrights.C. investm
Damm [24]

Answer:

investments.

Explanation:

Intangible assets are assets that cannot be physically seen. Example of intangible assets are parents, copyrights, goodwill, trademark etc

I hope my answer helps you

4 0
2 years ago
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