Equity and Debt Financing
- Using the Internet or Strayer databses, examine two (2) sources of outside equity capital available to entrepreneurs. Next, describe the source(s) you would use if you were creating a new company. Explain your rationale.
- Using the Internet or Strayer databses, analyze two (2) sources of debt financing. Next, discuss which non-bank source you would use if you were creating a new company. Explain your rationale.
Solution Preview
Outside Equity Capital
Equity capital refers to that cash that is paid into the business either by the owners own cash or from other investors, relatives and friends. There are different sources of external equity capital. Two of these sources are the entrepreneur’s friends and relatives and the finance from private investors often knows as angel investors (Gonzalez & Paravisini, 2017).
(399 words)