The objective of a small-business owner is to maximize the return on equity capital, ROE, of both the owner's money and capital from outside investors. One way to do that is to minimize the cost of financing the business. Suppose the interest rate for the debt of the Hasty Rabbit Corpo...
The disadvantages of the sole proprietorship include the 100 percent liability for the owner. This includes all the owner's personal assets, such as a car or home. Other disadvantages include the business being crippled if the sole proprietor becomes sick, disabled or dies. A sole proprietor may...
The Hartford: Advantages vs. Disadvantages of Debt Financing Jim Woodruff Contributor James Woodruff has been a management consultant to more than 1,000 small businesses. As a senior management consultant and owner, he used his technical expertise to conduct an analysis of a company's operational, ...
What is the disadvantage of a corporation? Be specific. What are the advantages of matching the maturities of assets and liabilities? What are the disadvantages? How does the availability of working capital financing differ between la...
What are the disadvantages of a corporation? Corporation and its Disadvantages A corporation consists of a distinct legal entity governed by a board of directors, which means that it is separate from its owner or employees. The corporation usually protects the owners from any liabilities. This help...
The disadvantages of common stock financing to the corporation: Issuing common stock extends voting rights and perhaps even control, to new stockholders Gives new stockholders the right to a percentage of profits rather than to a fixed payment in the case of c...
6.[A] The disadvantages of college loans.[B]Government financing in college education.[C]How to handle the problem of college loans.[D]How college students pay for their education.7.[A] It has increased by 6 to 8%.[B]It has increased by 8 to 10%.[C]It has decreased by 6 to 8...
A sole proprietorship lacks continuity because the business dissolves with the death of the owner. Finally, sole proprietors have a limited ability to secure financing, relying mostly on their personal resources. 10) Discuss the advantages and disadvantages of partnerships. Answer: Advantages of ...
Amortgagemight be the most common way to finance a home, but not every homebuyer can meet the strict lending requirements. One alternative to a mortgage is owner financing, a real estate agreement in which the seller of the property finances the purchase for the buyer. Here are the pros an...
The approval process for private money loans is often quicker and less stringent, making it easier to secure financing, even if you have less-than-perfect credit. Disadvantages A significant drawback is that these loans often have higher interest rates and fees than traditional bank loans, reflect...