10 Equity financing

10 Equity financing - More on Business Expansion Click to...

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Click to edit Master subtitle style 8/25/11 More on Business Expansion Equity Financing
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8/25/11 Recall In order to expand the business we need to have money to buy more capital. We talked at length about debt financing Bank or other loans (commercial paper or bonds) IOU
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8/25/11 Equity Financing Obtaining Financial Capital by giving people a stake in the business A share of the profits (or a share of the losses) You don’t have a liability you must pay back Now you have created: Owners Equity
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8/25/11 HOW DID WE BEGIN We opened a business Remember your lemonade stand: You opened a business It was yours to run as you choose Grandma’s Sweaters The farmer started the business The family kept all the profits
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Sole Proprietorships: The simplest form of business Easy to start Independence of ownership Simple tax rules: business income = personal income Unlimited liability: responsible for all debts Limited resources
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This note was uploaded on 08/25/2011 for the course BUS 101 taught by Professor Rollins during the Spring '08 term at Miami University.

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10 Equity financing - More on Business Expansion Click to...

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