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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.

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Greengage, Inc., a successful nursery, is considering several expansion projects. All of the alternatives promise to produce an

Ilia_Sergeevich [38]

Answer:

A. Project A

B. Project A has lowest Standard Deviation

C. Project D

Explanation:

The higher the range, the more risky the project is. Based on the table, project A has the smallest range, and therefore is the least risky based on range.

The standard deviation is not scale-free, i.e. it is not adjusted for the level of returns. Hence, a project that has the same distribution of returns, but a higher average return, will have a higher standard deviation. But the project is not any more risky. Hence, the standard deviation might not be an appropriate measure of risk.

The Coefficient of Variation (CV) is calculated as follows:

CV = Standard deviation / expected return

Applying this formula, the coefficient of variation for each project is:

Project A: 2.9% / 12.0% = 0.242

Project B: 3.2% / 12.5% = 0.256

Project C: 3.5% / 13.0% = 0.269

Project D: 3.0% / 12.8% = 0.23 4

Based on the coefficient of variation, project D has the lowest coefficient. It means that the project has the lowest risk per unit of return generated, and thus is the best project and should be chosen.

4 0

3 years ago

Your annual budget to hire a social media team is $620,000. If each member on the team is paid $18/an hour and works a total of

avanturin [10]

The number of team members you can hire based on your annual budget of $620,000 for the social media team is <u>16</u>.

<h3>What is budgeting?</h3>

Budgeting is the process of making a financial estimate of expected revenue and expenditure for a period.

Budgeting ensures that sufficient funds are made available and spending does not exceed the budgeted amount.

<h3>Data and Calculations:</h3>

Annual budget for media team = $620,000

Member's rate per hour = $18

Total hours worked per year by a member = 2,040

A member's earnings per year = $36,720 ($18 x 2,040)

The number of team members to hire =16.9 ($620,000/$36,720)

Thus, the number of team members to hire for the social media team is <u>16</u>.

Learn more about budgeting at brainly.com/question/24940564

7 0

2 years ago

Three firms are currently producing and selling in a market. When one of the three firms exits the market, economists expect tha

Tpy6a [65]

Answer: higher; lower

Explanation:

From the question, we are informed that three firms are currently producing and selling in a market. When one of the three firms exits the market, economists expect that there will be a rise in the equilibrium price while there will be a reduction in the equilibrium quantity.

This is because when one producer leaves, there will be less supply of the good that is sold, this will eventually lead to a rise in price.

5 0

3 years ago

During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $

lorasvet [3.4K]

Answer:

The total cost of vacation pay and pension rights to be recognized the first year is $0

Explanation:

The vacations are expected to be taken the following year for which the vacation pay would be made and the pension rights are expected to be paid over the next 5-30 years. So, no cost is recognized in the first year

5 0

3 years ago

What are advantages of books of prime entry

Liono4ka [1.6K]

Answer:

It is easy to post transactions to the ledger accounts after recording them in the prime entry books.

Reduce the number of entries posted in the ledger because the totals of prime entry books are posted to the ledger.

Minimize accounting errors and it is easy to find out such errors.

Explanation:

8 0

3 years ago

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