We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Financing Options: Newbe Expanding Business - Research Paper Example

Comments (0) Cite this document
Summary
Financing Options Name Institution Lecturer Course Date Prime Financial Consultants, Ainsdale Cresent, Middlesex. May 1, 2012. Newbe Enterprises, Fifth Street, Rochester, New York. Dear Sir, RE: Financing Options I am hereby writing in response to your concern regarding the best financing option you should pursue to facilitate taking your business to the mass market…
Download paper
GRAB THE BEST PAPER
Financing Options: Newbe Expanding Business
Read TextPreview

Extract of sample
Financing Options: Newbe Expanding Business

Finally, I have recommended the best financing options you should consider. Financing Requirements Before embarking on the types of financing that should be considered, it is worth noting something on financing requirements. The entrepreneur (or business management) should determine the amount of financing that is required to carry out the intended activities (going mass market), which is necessary in planning and execution of business operations properly (Gutterman, 1994, p. 2). Presumably, Newbe had determined the amount of capital required at the initial stages of the business formation. However, it is exceedingly crucial to review initial estimates periodically owing to the fact that the scope of business activities often change with time. Further, periodic review of the initial financing (capital) estimates enables businesses to cater for unforeseen factors, such as abrupt changes in the cost of raw materials. Business financing requirements and resources for securing the required capital depend on the size of the business under consideration and the industry (line of business) in which the business under consideration is operating (Gutterman, 1994, p. 2). ...
8-13). Probably, the degree of economic participation of the financial provider is the first decision that Newbe should make when selecting the financing strategy to pursue. Newbe should evaluate the degree of economic participation that the financial provider will have on the business enterprise during the financing period. For example, if Newbe considers common stocks as the source of required finance, the business should understand that the investors (common stock holders) would share profits with the entrepreneur while taking part in making various business decisions. On the contrary, if Newbe considers obtaining a loan from a financial provider, such as a bank, the financial provider will only demand the amount given plus interest on loan, but the provider will not be involved in decision-making. Therefore, if the decision-making procedure is a key issue that should be left to the enterprise management, Newbe should consider financial sources that do not require the financial provider to be involved in business decision-making (Alterowitz and Zonderman, 2007, p. 8). Newbe should also consider the cost of funds to current operations while deciding the financing alternative to pursue. It is apparent that every financial provider will expect full return to financial aid given in terms of cash and/or assets. In many, almost all, cases, the financial provider will demand to be compensated for the use of financial aid in terms of interest (bank loan) and dividend (stockholders) among others. Therefore, Newbe should assess how business cash flow requirements will be affected by any commitment to pay dividends or interest to ... Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financing Options: Newbe Expanding Business Research Paper”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/64644-newbe-expanding-business
(Financing Options: Newbe Expanding Business Research Paper)
https://studentshare.net/finance-accounting/64644-newbe-expanding-business.
“Financing Options: Newbe Expanding Business Research Paper”, n.d. https://studentshare.net/finance-accounting/64644-newbe-expanding-business.
  • Cited: 0 times
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Taking over and expanding an existing business as a new owner:a business plan proposal
With the pending sale of the business, now seemed like the perfect time to make the changes that will propel the business into the future.The new owner does not want to close for remodeling, so precautionary measures need to be taken to ensure the safety of every individual associated with the convenience store
14 Pages(3500 words)Research Paper
Expanding our Business into Canada
Located in the north of America (HLB international Canada 2008), Canada is one of the industrialized countries which engages in trade with other countries and therefore among the great seven (G7) group of economic powers. Canada is also a member of the general agreement on tariffs and trade (GATT), thus making the country competitive as it engages in international trade.
6 Pages(1500 words)Research Paper
Creating, Financing, and Marketing a Business
Partnership has many benefits. Since a partnership has a lot of partners coming into it, they all bring their experiences into the business. Some of them might be good at handling business operations, some at finance related matters while some at IT management.
4 Pages(1000 words)Research Paper
Business Financing and Capital Structure
The statements may be prepared in certain future period and enable the manager fund required. ?The funds required are determined: after drawing the projections in terms of marketing activities, sale of products and the production cost, finance manager draws up a plan of the required funds depending on the time factor.
4 Pages(1000 words)Research Paper
Business Financing and the Capital Structure
Cash flows allow estimating the depreciated value of assets owned by a company and further requirements to contribute in effective budgeting. Capital Asset Budgeting is also practiced commonly by corporations, which is however often criticized owing to its complexities and needs for continuous record-keeping (Oracle, 2008).
4 Pages(1000 words)Research Paper
Investment Options
Buyers are thus able to protect themselves against-that is, hedge against-higher prices and sellers are able to hedge against lower prices. Hedgers can also use futures to lock in an acceptable margin between their purchase cost and their selling price. The main goal of hedgers is to protect their interests and a little on making profits.
8 Pages(2000 words)Research Paper
Financing a Small Business
But, as scientists and economists struggle to devise ways of bringing back the lost balance, companies are finding excuses to fire excess employees and laying off its workforce at a fast pace to keep their costs low. This has led to huge unemployment in even the most developed countries let alone the underdeveloped.
5 Pages(1250 words)Research Paper
Distressed Financing
ase of bankruptcy, a company may have much difficulty to access financing from the traditional sources like loans and investments because the external funding sources like banks and other financial institutions often tighten their credit facilities when providing loan to the
12 Pages(3000 words)Research Paper
Assignment 2: Expanding Your Business
Business owners and managers are expected to ensure that they effectively understand the requirements for success in their different economic
6 Pages(1500 words)Research Paper
Financing Options
However, all such financing options suffer from certain underlying issues and drawbacks that affect the concerns and interests of the investors and the economy as a whole to some extent (D. Bell and C. Alex, “A New Fiscal Settlement for Scotland?”,
9 Pages(2250 words)Essay
Let us find you another Research Paper on topic Financing Options: Newbe Expanding Business for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us