Descartes First Meditation paper and Moore's Certainty paper - Essay Example

Therefore, this is a research paper with detailed information regarding different issues at hand. Studies show that, equity financing is a method or means used to generate share capital resources from external investors (Coyle 2002, p. 46). A general assumption is usually made when sourcing for equity finance, where long term and medium profits is the key target after the whole process of equity financing is completed. The major circumstance that surrounds any new business, which leads it to source share capital in this way, is because Alpha Personal Care Systems is not in a good position to pay loan interests at its start.

This is because the share capital needed for core activities that will make the company overcome existing market challenges and come up with unique products at affordable (Peter 2006, p.43). There are various sources of share capital, which include venture capitalists and business angels. Take a critical look at the two serious sources, studies reveal that there advantages and disadvantages of adopting the use of one the sources as equity finance generator (Doug 2009, p. 86). To begin with, Peter and Julie`s new company will enjoy the advantages of using business angel as share capital or equity finance resource (Pinson 2008, p.30). Naturally, business angels fancy channeling their funds on high-risk entrepreneurial firms.

Secondly, because Peter and Julie prefer getting small amounts of money for equity capital, it fall well within the business angel`s interest as the business angels consider funding small amounts that fall within the preferred equity finance gap to enable new venture launch. This is a big advantage as there will be minimal foreign impact on Alpha Personal Care Systems in terms of investments and decision making in the future. Every good source of finance has its disadvantages, in the case of Peter and Julie`s selection of business angels has a few disadvantages (Jefferson 2001, p.48). To