COURSE

BUS 1102 – Basic Accounting

The Learning Journal is a space where you should reflect on what was learned during the week and how it applies to your daily life and will help you with your life (career) goals.

For this week’s activity, you will provide information on long-term liability concerning financing a business.

Please complete the following tasks:

1. You are about to buy a business that is worth $200,000, but you do not have enough money to purchase the business entirely. You have a total of $90,000 in savings and you are looking at different financing options. Provide information for the following:

• • Explain the advantages of equity financing and debt financing
  • Explain the disadvantages of equity financing and debt financing
  • Provide an example of equity financing
  • Provide an example of debt financing
  • Explain which type of long-term liability financing you would choose to buy the business?

2. Provide a suggestion for future business owners on financing that you have learned from Unit 7 Learning journal assignment.
3. What did you learn about yourself as a potential business owner while completing this assignment that you did not know about yourself prior?

SOLUTION  

1. You are about to buy a business that is worth $200,000, but you do not have enough money to purchase the business entirely. You have a total of $90,000 in savings and you are looking at different financing options. Provide information for the following:

• Explain the advantages of equity financing and debt financing

You may need to seek investment from outside your company to accelerate growth beyond what can be achieved with internal resources alone or simply to avoid stagnation. With equity financing, you give up a portion of your company in exchange for capital. Debt financing is obtaining working capital in which a company issues debt instruments to investors.…..please click the icon below to purchase the solution at $10