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Funding of Business
Institutional Affiliation
Student's Name
Course Name
Instructor's Name
Date
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Funding of Business
Introduction
Operations of businesses will require that firms have the resources necessary to help them
meet their goals and objectives. Various sources of finance can be used to finance business
operations (Bhattacharya & Londhe, 2014). According to Bhattacharya & Londhe (2014), debt
and equity are the two primary sources of finance that businesses usually use to finance their
operations. Therefore, a sound financial plan will help companies finance their operations and
manage funds to ensure that funds are appropriately used and maximized. This paper shall
evaluate the best sources to finance a business and future strategic options that the business may
pursue.
Current Funding Request
The owner's capital and equity will fund the current business operations since the funds
required to start and continue operating the business will be high. Equity and debt will be used to
finance the business due to the large finance requirements that the business will require. The
amounts to be contributed by the owners will mainly depend on the financial capability of the
partners. After the funds have been contributed, the debt shall be sought from the banking
institutions or any lending institutions with lower capital costs. The initial $ 700,000 investment
was from owners and equity. $ 500,0...