Purchase Solution

Sources of Funding for a New Venture

Not what you're looking for?

Ask Custom Question

Please help with the following problem.

Discuss the sources of funding for the new venture and the rationale for using each source.

Purchase this Solution

Solution Summary

The 447 word referenced solution explains the three types of investors in new or expanding business and where each is most likely to be used.

Solution Preview

Problem: Discuss the sources of funding for the new venture and the rationale for using each source.

Solution: The following sources are all equity investments with various restrictions, conversions and repayment plans.

The first level of financing for new business is often among the so-called "3 F's". Those are friends, family and fools. They are a good place to start because of the ease with which the funds can be procured, and the likelihood that restrictions on use will be limited or non-existent. The negatives to using these sources, particularly family, is that there may be undue interference in new business efforts because funding seems to include 'strings' that extend to management, favors, and other. The best way to confront the ...

Purchase this Solution


Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.