All categories

3 years ago

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

The idea that firms and resource suppliers in seeking to further their own self-interests in a competitive market economy also s

Lorico [155]

That is known as the "invisible hand"

4 0

2 years ago

Read 2 more answers

At December 31, 2019, Skysong Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 108,966

Fittoniya [83]

Answer:

Earnings per share from continuing operations is $3.41 per share.

Earnings per share from discontinued operations is -$0.53 per share.

Explanation:

The earnings per share data can be computed by preparing a partial income statment as follows:

Skysong Corporation

Income Statement (Partial)

As at December 31, 2019

Particulars Amount ($)

Continuing operations

Income from continuing operations before taxes 22,887,900

Taxes on continuing operations (22,887,900 * 35%) (8,010,765)

Income from continuing operations after taxes 14,877,135

Preferred dividends declared (1,089,660)

Income from continuing operations after pref. div. 13,787,475

Discontinued operations

Discontinued operations (loss before taxes) (3,284,900)

Tax benefit on discontinued oper. (3,284,900 * 35%) 1,149,715

Discontinued operations (loss after taxes) (2,135,185)

Earnings per share:

Continuing operations (13,787,475 / 4,044,060) 3.41

Discontinued operations (2,135,185 / 4,044,060) (0.53)

5 0

2 years ago

Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing. The syst

tino4ka555 [31]

Answer:

Explanation:

Annual worth: this will be the annuity payment equivalent to all the cashflow of the investment. Thus the PMT of the net present value

Cash Investment at F0: 230,000/2 = 115,000

present value of 7,500 salvage value:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 7,500.00

time 7 years

MARR: 10% = 0.1

$\frac{7500}{(1 + 0.1)^{7} } = PV$

PV 3,848.69

Then, we need to calculate the present value of the loan discounted at 10%

half the investment is finance: 230,000 / 2 = 115,000

Then, this capitalize 2 year at 8% before the first payment:

$Principal \: (1+ r)^{time} = Amount$

Principal 115,000.00

time 2 year

MARR: 10% = 0.08000

$115000 \: (1+ 0.08)^{2} = Amount$

Amount 134,136.00

Now we need to discount this loan at 10% which is our rate of return:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 134,136.00

time 2.00

MARR: 10% = 0.1

$\frac{134136}{(1 + 0.1)^{2} } = PV$

PV 110,856.20

Finally: we add this values to get the resent worth:

115,000 + 110,856.20 - 3,848.69 = 222,007.51

Last step, we calculate the PMT of the present worth:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 222,007.51

time 7 years

MARR: 10% = 0.1

$222007.51 \div \frac{1-(1+0.1)^{-7} }{0.1} = C\\$

C $ 45,601.564

6 0

3 years ago

During the proofreading task of the completion stage of a business message, be sure to

Nikitich [7]

You have to read very carefully to make sure you dont miss any mistakes

3 0

2 years ago

Suppose gdp in this country is $800 million. enter the amount for government purchases. national income account value (millions

Bess [88]

Answer:

Therefore government purchases is $300 million

Explanation:

In this case, GDP is the sum of consumption, investment, and government purchases. To calculate the value of consumption we use the formula:

CC + II + GG = Y

GG = Y - CC - II

Where:

government purchases = GG

taxes minus transfer payments (TT) = $260 million

consumption (CC) = $300 million

investment (II) = $300 million

Y = country GDP = $800 million

GG = Y - CC - II

Substituting:

GG = $800 million - $300 milllion - $300 million

GG = $200 million

Therefore government purchases is $300 million

7 0

3 years ago