Question.4810 - Week 8 discussionThis is the discussion forum for Week 8 of the semester. Only items you post here during the class week will be counted toward your discussion grade.You must answer the discussion questions with your own relevant and meaningful input. Also, you must reply to the inputs of at least 2 other students in the class. You should participate throughout the week so that others will be able to respond to your input and also you to theirs. Discussion Questions:1) What are the benefits and drawbacks of equity and debt financing?2) What are some of the advantages and disadvantages of going public?3) Some entrepreneurs do not like to seek new-venture financing because they feel that venture capitalists are greedy. In your opinion, is this true? Do capitalists want too much? Please explain in detail.
Answer Below:
Hello xxxxx What xxx the xxxxxxxx and xxxxxxxxx of xxxxxx and xxxx financing xxxxxxxxx a xxxxxxxx requires xxxxxxxx between xxxxxx and xxxx financing xxxx of xxxxx has xxxxxxxx advantages xxx disadvantages xxxxxx Financing xxx of xxx primary xxxxxxxx of xxxxxx financing xx that xx does xxx require xxxxxxxxx like x loan xxxx means xxxxxxxxxx can xxxxx the xxxxxxxxx strain xx fixed xxxxxxx payments xxxxxx it xxxxxxxxxx useful xxx startups xxx growing xxxxxxxxxx with xxxxxxxxx cash xxxxx Additionally xxxxxxxxx often xxxxx valuable xxxxxxxxx industry xxxxxxxxxxx and xxxxxxxxxx which xxx contribute xx business xxxxxxx Another xxxxxxxxx is xxxxxxxxxxxx since xxxxxxxxx take xx the xxxxxxxx risk xxx burden xx not xxxxxx on xxx entrepreneur xxxxxxx equity xxxxxxxxx has xxx drawbacks xxx most xxxxxxxxxxx is xxx loss xx ownership xxx control xxxxxxxxxxxxx must xxxxx decision-making xxxxx with xxxxxxxxx which xxx limit xxxxxxxx Additionally xxxxxxxx equity xxxxxxxxx can xx time-consuming xxx complex xxxxxxxxx due xxxxxxxxx negotiations xxx legal xxxxxxxxxx Profits xxxx also xx shared xxxxx can xxxxxx long-term xxxxxxxxx gains xxx the xxxxxxxx owners xxxx Financing xxxx financing xxxxxxxxx obtained xxxxxxx loans xx bonds xxxxxx businesses xx retain xxxxxxxxx while xxxxxxxxx necessary xxxxx A xxxxx advantage xx that xxxx payments xxx predictable xxxxxxxx for xxxxxxxxxx financial xxxxxxxx Interest xxxxxxxx on xxxxxxxx loans xxx also xx tax-deductible xxxxx provides xxxx financial xxxxxx Kuratko xxxxxxx debt xxxxxxxxx has xxx risks xxx obligation xx repay xxx loan xxxxx with xxxxxxxx can xxx a xxxxxxxxx strain xx the xxxxxxxx especially xx revenue xx inconsistent xxxx debt xxxxxx can xxxx make x company xxxxxx riskier xx investors xxx lenders xxxxxxxx future xxxxxxxxx capacity xxxxxxxxxxxx failure xx meet xxxxxxxxx obligations xxx lead xx asset xxxxxxxx or xxxxxxxxxx What xxx some xx the xxxxxxxxxx and xxxxxxxxxxxxx of xxxxx public xxxxx public xxxxxxx an xxxxxxx public xxxxxxxx IPO xxx offer xxxxxxxxxxx advantages xxx also xxxxxxxx considerable xxxxxxxxxx Advantages xxx major xxxxxxx of xxxxx public xx access xx substantial xxxxxxx IPOs xxxxx businesses xx raise xxxxxxxxxxx funds xxxx can xx used xxx expansion xxxxxxxx and xxxxxxxxxxx or xxxx reduction xxxxxxxx traded xxxxxxxxx also xxxx increased xxxxxxxxxx and xxxxxxxxxxx which xxx enhance xxxxx brand xxxxxxxxxx and xxxxxxx customers xxx partners xxxxxxxxxxx publicly xxxxxx shares xxxxxxx liquidity xxxxxx it xxxxxx for xxxxx investors xxx employees xx cash xxx Disadvantages xxxxxxx going xxxxxx comes xxxx challenges xxxxxxxxx high xxxxx associated xxxx the xxx process xxxx as xxxxx accounting xxx underwriting xxxx Public xxxxxxxxx are xxxx subject xx extensive xxxxxxxxxx and xxxxxxxxxx requirements xxxx as xxx filings xxx shareholder xxxxxxxxx which xxx be xxxxxx and xxxxxxxxxxxxxx Additionally xxxxxx companies xxxx market xxxxxxxx requiring xxxx to xxxx quarterly xxxxxxxx expectations xxxxx may xxxx to xxxxxxxxxx decision-making xxxxxx than xxxxxxxxx strategic xxxxxxxx The xxxx of xxxxxx control xxxx increases xx shareholders xxx influence xxxxxxx decisions xxxxxxxxx against xxx founder x vision xxxxxxx Some xxxxxxxxxxxxx do xxx like xx seek xxxxxxxxxxx financing xxxxxxx they xxxx that xxxxxxx capitalists xxx greedy xx your xxxxxxx is xxxx true xx capitalists xxxx too xxxx Please xxxxxxx in xxxxxx The xxxxxxxxxx that xxxxxxx capitalists xxx are xxxxxx stems xxxx the xxxx that xxxx often xxxxxx significant xxxxxx stakes xxx control xx exchange xxx funding xxxxxxx this xxxx depends xx perspective xxxxxxx Supporting xxx Claim xxxxxxx capitalists xxxx high xxxxxxx on xxxxxxxxxx because xxxx take xxxxxxxxxxx risks xx funding xxxxxxxx many xx which xxxx To xxxxxxxx their xxxxx they xxxxx negotiate xxxxx ownership xxxxxx and xxxxx representation xxxx entrepreneurs xxxx that xxx demand xxx much xxxxxx which xxx dilute xxxxxxxx control xxx reduce xxxxx long-term xxxxxxxx Additionally xxx may xxxx for xxxxxxxxxx growth xxxxxxxxxx that xxxxx with xxxxx financial xxxxxxxxx but xxx not xx in xxx best xxxxxxxx of xxx business xxxxxxx Reasons xxxxxxx the xxxxx On xxx other xxxx venture xxxxxxxxxxx provide xxxx than xxxx money xxxx offer xxxxxxxx expertise xxxxxxxxx guidance xxx valuable xxxxxxxx that xxx accelerate xxxxxxxx success xxxxx goal xx to xxxxxxxx returns xxx this xxxxxx with xxx startup x growth xxxxxxxxx Without xx funding xxxx companies xxxxx struggle xx scale xx compete xx the xxxxxx Additionally xxxxxxxxxxxxx always xxxx the xxxxxx to xxxxxxxxx terms xx seek xxxxxxxxxxx funding xxxxxxx such xx angel xxxxxxxxx crowdfunding xx bootstrapping xxxxxxxxxx Kuratko x F xxxxxxxxxxxxxxxx Theory xxxxxxx PracticeMore Articles From Entrepreneurship
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