BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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investments by family and friends
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personal savings
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private investors
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public equity
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Detailed explanation-1: -Sources of Financing for small business or startup can be divided into two parts: Equity Financing and Debt Financing. Some common source of financing business is Personal investment, business angels, assistant of government, commercial bank loans, financial bootstrapping, buyouts.
Detailed explanation-2: -The correct answer is e) Government grants. Equity funding is a source of funding where the equity-holders are given a share in the ownership of a firm in exchange for investing in it. Examples include initial public offering, follow-on public offering, angel investing, private placements, and venture capital funding.
Detailed explanation-3: -The three main sources of capital for a business are equity capital, debt capital, and retained earnings. Equity capital is where a company raises money by selling off a percentage of the business in the form of shares which are purchased and owned by shareholders.