week 1 Discussion

week 1 Discussion - Discussion2done Having a business plan...

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Discussion 2 done  Having a business plan is important because it help to judge the details of the business and its' expectations. Also while working on the business plans it gives us the chance to discover numerous characteristics of the new business that we might not have thought about. Considering a business plan help us save money also give us the chance to resolve any matter before it could affect our business cycle in a wrong way. Also the business plan facilitates the job for us if we are trying to get outside funds for our business. Since we all know that most banks and lenders in general requires taking a look at the business plan first before offering any potential funds. A business plan also gives a very good image about a business and how serious about being successful in it We can look at a business plan as a great Management Tool as well; it provides business owners with a useful check list of what been achieved and what needs to be done and to keep track of the firms goals Discussion 3 done I agree with you … Would like to add that one of many ways to raise capital is issuing bonds .A bond is a written secure to pay back a precise amount of money at a firm date or dates in the future. In a short amount of time the bondholders should collect interest payments at flat rates on particular date, and they can sell bonds prior to their due date. I would like to mention that the Corporations as a form of business benefit from issuing bonds since the interest rates they have to pay to investors are in general way fewer than rates for all other types of borrowing .Also another reason is that the interest paid on bonds is considered as a tax-deductible business expense. But the disadvantage here is that the corporations should pay the interest regardless if the company is generating profit or not. Another problem is that when the If investors distrust a company's ability to pay its interests, they could reject to buy its bonds or will require a higher rate of interest to pay off them for their increased risk. That pretty much explains why minor corporations can rarely raise capital by issuing bonds. 2 nd topic 1 done The Free cash flow is a very important cash flow analysis for any business. Also we could define it as the cash that a company has left after it pays for any capital expenditures it makes, like new plant or
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equipment or we could look at it as the money the company has left to pay investors after it meets all its financial obligations. The free cash flow is a very important tool since it tracks the money. Actually it’s what the company has left over at the end of the year, or quarter, of course after paying all its bills and paying for any existing or new capital expenditures. It is what it has left over to pay investors. 2 done
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This note was uploaded on 03/13/2011 for the course MM 522 taught by Professor Kouli during the Spring '11 term at DeVry Colorado Springs.

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week 1 Discussion - Discussion2done Having a business plan...

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