HCS 385 Discussion

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  • Describe the types of equity and debt financing. 150 Words
  • Define various bond terminology.150 Words
  • Compare tax-exempt with taxable financing.150 Words
  • Explain lease financing.150 Words

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DISCUSSION

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DISCUSSION
Equity Financing and Debt Financing
Equity financing involves selling individual shares to investors who acquire partial rights to the
business ownership (Opler, 1994). Types of equity finance include;
Individual private investment involves approaching individual investors such as family and
friends. It’s an easy to acquire finance since investors are more focused on relationships rather to
profitability. Venture capital refers to individuals or larger firms which high investment
potential. Venture capitalist focuses on business with high growth potential to invest in and earn
a share of control. Angel investors are individuals or firms with huge finances to invest in
businesses they have typical experience or worked with. Angel investors get involved in the
business at early stages to provide guidance and full support.

Debt financing is borrowing money from outside in form of loans to be replayed on interest.
Types include;
Most well known is loans borrowed from banks and unions which require periodical
payments plus an interest. Loans include established loans from relatives an...


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