A form of debt or equity that possesses characteristics of both debt and equity financing is called <u>hybrid security.</u>
Debt financing means borrowing money from an external source and promising to repay it with interest by a specified future date. Equity financing means that someone donates money or assets to a company in exchange for a percentage of ownership. Each has its pros and cons, depending on your needs.
Debt financing involves borrowing money, while equity financing involves selling some of the company's shares. The main advantage of equity financing is that there is no obligation to repay the acquired funds.
The main difference between debt and equity financing is that debt financing occurs when a company raises capital by selling debt instruments to investors. In equity financing, on the other hand, a company raises capital by going public.
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Answer: In managing a political risk, the first thing to do is to go on a research, to determine the type of political risk that is likely to occurs in the country or state, and the level of influence this risk has on your business. If the risk is manageable, then investment can start, but before start, you should get a political risk insurance certificate, from a national insurance body or an international insurance body. If at a time the risk becomes higher, that it is likely to affect the production of my profit. The business will be incorporated with a government owned business. So as to sustain the business profit, because no Government will want to establish any law that will have big negative effect upon its own business. If the high risk is as a result of the host community, then the business should be incorporated with the community, so that their will see a sense of belonging to the business.
Explanation:
The political risk found in managing any business are the influences government policies have on that business, this includes taxes,spending,regulation,currency valuation,trade tariffs, minimum wage and environmental regulation.
For example im a CNA. to be a CNA you don't have to have a degree in nursing you just have to have a license. another example is CPR
Answer:
$5,000
Explanation:
The estimated budget of an engagement ring is the ball park figure that is spent on an engagement ring. There are various methods used to get the estimalt amount a person should spend on buying an engagement ring.
The three most popular methods are 2 month salary, average cost, and average diamond size.
Using 2 month salary method, the salary of the buyer for two months is used as budget amount.
Amount to be budgeted= (30,000÷12) * 2
Amount to be Budgeted= $5,000