Learning Goal: I’m working on a business multi-part question and need a sample draft to help me learn.Part A Prior to beginning work on this discussion forum, read Unit 3: Securing Capital from the course textbook Entrepreneurship: Starting and Operating a Small Business. Frame your reading with the view that obtaining financing for a new business depends on a mix of personal and business factors. For example, people uncomfortable with debt are likely to prefer equity financing rather than debt financing. Of course, personal preferences are affected by business factors. For example, those offering equity funding do not fund all business offerings and debt, or bootstrapping might be the only options available. Review the funding sources listed in Exhibit 10-3 in the course textbook Entrepreneurship: Starting and Operating a Small Business. Assess your personal feelings about independent funding, debt funding, and equity funding. Select one source of funding sources listed in Exhibit 10-3 and then do the following: Justify your choice in terms of your personal feelings about sources of funding.
Critique the responses offered by two colleagues and offer at least one business condition that will affect the colleague’s access to the preferred choice of funding. For example, if a colleague prefers debt financing from a bank, what is at least one business factor affecting the bank’s approval or denial of the loan your colleague must consider? Offer a link to a video or an article that offers information about your preferred source of funding with an emphasis on the risks and rewards associated with the funding source. Think beyond the text. For example, offering friends and family an equity interest in a new business instead of debt has implications if the business fails. If bankruptcy occurs and assets are liquidated, creditors receive payment ahead of shareholders. How does this information affect your views about seeking funding assistance from friends and family? Part B Prior to beginning work on this discussion forum, read Unit 3: Securing Capital from the course textbook Entrepreneurship: Starting and Operating a Small Business. Frame your reading with the view that financial considerations frame all significant entrepreneurial activities and decisions, and the balance sheet is a rich source of information needed to inform significant business decisions and identify significant risks. We can analyze a balance sheet to determine how a business is financed, and this analysis enables us to draw conclusions about risks we have because of the capital structure developed from choices about debt and equity financing. Analyze the spreadsheet Balance Sheet Download Balance Sheet and create an initial discussion post that addresses the following: What conclusions about how the business is financed can be drawn from the composition of the organization’s capital?
Based upon the defined capital structure, assess the risks facing the entrepreneur responsible for this business because of the capital structure.
What can one conclude about the business’s financing based on the composition of the organization’s capital? To aid your analysis of capital structure, access the balance sheet for this discussion, and compute the debt to equity ratio as follows: Add (current portion of long-term debt) + (long-term debt net of current portion) to obtain long-term debt.
Debt-to-equity ratio = Long-term debt/total shareholders’ equity.
Use the computed ratio to respond to the above questions. Offer a link to a video or an article that supports your analysis and conclusions. Part C Prior to beginning work on this assignment, watch the video Introduction to Financial Statements (Links to an external site.) . This video covers an overview of the four financial statements. Create an assignment focused on level of comfort with three important financial statements: The income and expense report
The balance sheet Download balance sheet
The statement of cash flows
The reflective evaluation is the foundation for creating a plan to increase knowledge of these three statements. Do the following: Consider and reflect on knowledge gained in the work environment.
Consider and reflect on knowledge gained in prior classes.
Execute the Chapter 8 Mini Sim on accounting and accounting information through the link, MyLab Entrepreneurship All Assignments. Click on “Week 4 – Assignment” to complete the Chapter 8 Mini Sim in MyLab.
In your paper, Evaluate your level of comfort with the three foundation financial statements:The income and expense report
The balance sheet
The statement of cash flows
Frame your evaluation with knowledge gained in the work environment and in prior classes.
Evaluate your level of comfort with three important financial statements:The income and expense report.
The balance sheet.
The statement of cash flows.
Illustrate the relationship of the elements of all income and expense report entries offered as part of the simulation.
Illustrate the steps needed to discuss a pro forma income and expense statement with a potential investor.
Interpret the meaning of the balance sheet entries offered as part of the simulation.
Identify the principles and steps needed to discuss a pro forma balance sheet with a potential investor.
Describe the role of statement of cashflows entries offered as part of the simulation.
Summarize the principles and steps needed to discuss a pro forma statement of cashflows with a potential investor.
Next, do the following: Evaluate your level of comfort with the three foundation financial statements: (a) the income and expense report, (b) the balance sheet, and (c) the statement of cash flows. Frame your evaluation with knowledge gained in the work environment and in prior classes. Within your evaluation, consider the following: Evaluate the level of comfort with three important financial statements: (a) the income and expense report, (b) the balance sheet, and (c) the statement of cash flows.
Illustrate the foundation principles of all income and expense report entries offered as part of the simulation. What knowledge was needed to discuss a pro forma income and expense statement with a potential investor?
Define the purpose of balance sheet entries offered as part of the simulation.
Identify the principles and steps needed to discuss a pro forma balance sheet with a potential investor.
Define the role of statement of cashflows entries offered as part of the simulation.
Define the principles and steps needed to discuss a pro forma statement of cashflows with a potential investor.
Must be three to four double-spaced pages in length (not including title and references pages) and formatted according to APA 7
Must include a separate title page with the following:Title of paper
Student’s name
Course name and number
Instructor’s name
Date submitted
Must utilize academic voice.
Must include an introduction and conclusion paragraph. Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your paper.
Must use at least two scholarly sources in addition to the COURSE TEXT
Requirements: Part A: 325 words, Part B: 325 words, Part C: 3.5 pages
