Calvin Nguyen Professor Bohn Chapter 19 7/24/11 Small Business Planner 1. Four distinction of a business plan are: description of the business, marketing, Finances, management. 2. The most important difference between debt and equity financing is that, equity financing comes from non-professional investors such as friends, family, customers, employees, and colleagues. In addition, most equity comes from wealthy venturing capitalist who takes risks; the down side is that they give up most of the decision-making and some of the potential for profits. This is the main disadvantages of equity financing. As for debt financing, it comes from banks, savings and loans, commercial finance companies, and the U.S. Small Business Administration. The SBA allows banks to feel secure when lending money to small businesses, and lenders require borrowers their personal guarantee so that it ensures the borrower has sufficient personal interest. 3.
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This note was uploaded on 11/06/2011 for the course BUS 102 taught by Professor Lahai during the Spring '11 term at Everett CC.