BUSN105 - 1304B - 23
Funding Your Own Business
The importance of an investment banker is what they do. They are important due to the fact that they are of services that offer to the economy. They offer advice for economic dealings, for example, acquisitions and mergers for businesses. When a business retails new securities in order to increase funds, the representative has the responsibility to the actual buyer for these securities. The investment banker in turn would purchase securities from business and arrange a speedy resell of the securities to the investor’s bankers in order to, investigate research, analyze, distribute and underwrite. Typically, an investment banker will perform ...view middle of the document...
(Morris, S 1999).
Financial management is a comparatively a forthright and term that is considered self -explanatory. It can be referred to an individual’s capability to succeed in their own personal finances. It could also be referred to by the request to assist from a bank or by structuring a society that employs specifically financial managers that are trained in order to succor an individual and businesses as how to become accustomed to the greatest financial approaches. The importance of financial management is that it generates much more consciousness of financial strategies and the importance of managing funds appropriately. (Morrison A. 1997).
Risk financing is a word that is referred to the actions of providing and saving monies that covers for any unexpected loss that a business may come across. Generally, this will contain pooling monies away in assets that would be ready to be utilized in the occurrence of an emergency. (Morris, S 1999).
The source of funding would be to borrow money. Borrowing money would be a form of funding for the business due to that fact that if you borrow money from your own business, you can attain interest rates that are considered favorable. If the rates are less the appropriate federal rate that is set on a monthly basis by the IRS, they will be credited under a sequence of rules set in place by the IRS.
The advantage to borrowing money to fund your business is that it is one of the easiest ways to get funds that are needed for the start-up for your business in order for it to grow. By contributing a building or possessions as collateral, low interest rates can be offered. Also, the rate of interest is often...