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Small business during the planning stages

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Please address the following questions in your response.

1. What elements make up the fair market price of a business?

2. What financing options exist for a small business and which one would you prefer? Why?

3. What are the advantages and disadvantages of bringing in a venture capitalist?

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Solution Summary

This solution explains the elements that make up the fair market price of a business, the financing options that exist for a small business and the Expert's personal preference out of those, and the advantages and disadvantages of bringing in a venture capitalist.

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1. What elements make up the fair market price of a business?

The fair market price of a business is determined by demand and supply. Small business operators should see the market price and the competitor's price while deciding the price. Price is a function of cost and the market trend. The objective of pricing can be the maximization of profit in the long term. One needs to take care of the cost and apply a suitable mark-up depending on the ...

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