Explore BrainMass

Explore BrainMass

    Deciding on a funding option

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    In 200-300 words:

    What are some considerations when deciding on a funding option (i.e. leasing, financing, etc.)? please provide references if used

    © BrainMass Inc. brainmass.com June 3, 2020, 11:04 pm ad1c9bdddf
    https://brainmass.com/business/leasing/deciding-on-a-funding-option-261882

    Solution Preview

    In 200-300 words:

    What are some considerations when deciding on a funding option (i.e. leasing, financing, etc.)? please provide references if used

    There are various funding options such as borrowing, leasing, equity in case of funding of the organizations.
    Equity
    Equity represents ownership in the organization. There are various ways of raising money through equity shares:

    1) IPO
    IPO is initial public offer where the money is raised from the general public first time.
    2) Follow on offers
    Here the money is raised through the public in general by subsequent issues. These issues can be raised from the existing shareholder or from general public.
    3) Strategic placements
    The money can be raised from selling the partial ownership to the institutions.
    4) Venture capitalists
    Venture capitalists help in raising the money at the infancy stage. These also help in giving other inputs such as technical and managerial inputs for nurturing the organization.

    Evaluation of raising money from equity

    Equity ...

    Solution Summary

    Response helps in deciding on a funding option

    $2.19

    ADVERTISEMENT