ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is an advantage of using owner’s funds to finance a business ____
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Don’t have to repay which will help cash flow
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May only be limited amounts available
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Threat to personal finances and family which could result in stress
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No interest charges which helps to reduce costs
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Explanation:
Detailed explanation-1: -The main advantage of equity financing is that it offers companies an alternative funding source to debt. Startups that may not qualify for large bank loans can acquire funding from angel investors, venture capitalists, or crowdfunding platforms to cover their costs.
Detailed explanation-2: -Pro: You Will Run a Better Business. Pro: One of the Top Owner’s Funds Benefits – It’s Your Business, Your Way. Con: The Risk of Personal Debt and Bankruptcy. Con: Your Money Might Not Be Enough.
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