Question

68% of total start up finances come from personal resources, Only 20% of companies start successfully...

68% of total start up finances come from personal resources, Only 20% of companies start successfully with commercial loans - what are your thoughts on this?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Commercial banks and other financial institutions do not relly on start-up finances. They thought it to be more risker than other modes, therefore, they refuse to fund these startup. Also in the case of startup businesses, they don't have business credit of their own. This startup tends to be considered risky to banks. In view of the above, it is next to impossible for start-ups to get loans from commercial banks and other institutions.

In my opinion, commercial banks and other institutions should change their rules which should also be friendly for these newly setup startups so that they will be able to get laons and fund their business.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Gerard wants to borrow $20 000 from a bank to start a landscaping business. Gerard has...
Gerard wants to borrow $20 000 from a bank to start a landscaping business. Gerard has always maintained timely repayments on his personal loan, two car loans and three credit cards. With an after-tax income of $45 000, total savings of $4000 and monthly living expenses averaging $1600, will Gerard’s loan be approved? Explain your answer
8. A check-cashing store is in the business of making personal loans to walk-up customers. The...
8. A check-cashing store is in the business of making personal loans to walk-up customers. The store makes only one-week loans at 8 percent interest per week. a. What APR must the store report to its customers? What EAR are customers actually paying? (Round your EAR answer to 2 decimal places. (e.g., 32.16)) b. Now suppose the store makes one-week loans at 8 percent discount interest per week. What’s the APR now? The EAR? (Round your answers to 2 decimal...
Sticky costs I was looking at a lot of data across a lot of years, companies,...
Sticky costs I was looking at a lot of data across a lot of years, companies, and industries and I noticed the following: When sales increased by 10 percent, total operating expenses increased by 9 percent. When sales decreased by 10 percent, total operating expenses decreased by only 5 percent. Maybe this pattern of total operating expenses could be described as ‘sticky.’ Costs seemed to readily go up to follow sales, but costs did not decrease as readily when sales...
Q Corporation and R Inc. are two companies with very similar characteristics. The only difference between...
Q Corporation and R Inc. are two companies with very similar characteristics. The only difference between the two companies is that Q Corp. is an unlevered firm, and R Inc. is a levered firm with debt of $5 million and cost of debt of 10%. Both companies have earnings before interest and taxes (EBIT) of $2 million and a marginal corporate tax rate of 40%. Q Corp. has a cost of capital of 15%. (20 marks total) a. What is...
What is Cannibalization? Cannibalization results when the sales of a new product in part come from...
What is Cannibalization? Cannibalization results when the sales of a new product in part come from sales taken away from other products sold by that firm. Cannibalization most commonly occurs when a firm introduces a new flanker brand or line extension into the same product line in which it already has brand representation. For example, when Proctor & Gamble introduces a new brand of laundry detergent into its extensive line of detergents, some sales for the new brand will highly...
Option #1: Time Value of Money Personal Finance Application Your friend Sue has asked you to...
Option #1: Time Value of Money Personal Finance Application Your friend Sue has asked you to help her out as she is developing her financial plan. Help her come up with a plan for her finances and how she can set herself up for financial success! She has an after tax income of $48,000 and budgets $30,000 for necessary expenses. This leaves $18,000 to spend on debt and savings annually. (Assume all annuity payments are in the form of ordinary...
Shine-Ola Premium Bulbs: the Pricing Decision Voll Taik, the marketing manager for a new lighting start-up...
Shine-Ola Premium Bulbs: the Pricing Decision Voll Taik, the marketing manager for a new lighting start-up was very interested in the concept of Value-Based pricing. He was wondering how he might apply the concept to a situation facing his company "Shine-Ola". The new product, "Shine-Ola Premium Bulb", was a LED (Light Emitting Diode) technology and was dramatically better than competing lighting solutions available on the market. Competing solutions included standard incandescent bulbs and compact fluorescent lighting, (CFL). Extensive laboratory testing...
1.Conclusions from the classic Kasser and Ryan study on the “dark side of the American dream”...
1.Conclusions from the classic Kasser and Ryan study on the “dark side of the American dream” a. only apply to affluent cultures. b. are specific to the United States and Canada. c. are limited to Western cultures. d. have been replicated in a variety of different cultures 2.Self-regulation and control have to do with the ________ of goal achievement. a. “what” b. “why” c. “how” d. “when” 3.Compared to other motivational concepts, such as needs, values, and motives, Karolyi argues...
ART A (20 marks) Beta Drug and Chemical Ltd is undertaking a number of research and...
ART A Beta Drug and Chemical Ltd is undertaking a number of research and development projects, including the following project. Beta has been in the industry for a long time and has a network of suppliers / retailers it can rely on for any new product introduced. Project Interion: 2018: A new organic compound, DTT-phenol, has been discovered and there is a lot of interest in what this new compound can do. Beta spends $200,000 on various costs to synthesise...
MICRO Economics ASSIGNMENT Total marks= 20 Answer the below questions. 1. The economy of the university...
MICRO Economics ASSIGNMENT Total marks= 20 Answer the below questions. 1. The economy of the university town of Avicenna produces two and only two commodities: yoga lessons, and triple lattes. The economy is able to produce any of the following combinations of yoga and lattes per day: CLO 1 [4 MARKS] Daily Production in Avicenna Combination Yoga Lessons Triple Lattes A 5000 0 B 4000 9000 C 3000 16000 D 2000 21000 E 1000 24000 F 0 25000 a) Using...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT