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What types of instruments can large businesses issue or acquire? What are the benefits and risks...

What types of instruments can large businesses issue or acquire? What are the benefits and risks for the business in creating or acquiring each type of financial instrument? What limitations for acquiring or issuing financial instruments are there for small businesses? Would owners of a start-up have to put themselves personally on the line to obtain financing?

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Answer #1

What limitations for acquiring or issuing financial instruments are there for small businesses?

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A small business has a very small business base and lesser amount of capital. It is generally a sole proprietorship business or joint venture hard. This is why small businesses has lower access to funds. Since they have very low amount of funds available to them, they can buy only a few financial instrument. Also, when they go for finance, they get very less amount of subscribers for the reason that of small business and reach.

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