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Question -
1. You are about to buy a business that is worth $200,000, but you do not have enough money to purchase the business entirely. You have a total of $90,000 in savings and you are looking at different financing options. Provide information for the following:
-Explain the advantages of equity financing and debt financing
-Explain the disadvantages of equity financing and debt financing
-Provide an example of equity financing
-Provide an example of debt financing
-Explain which type of long-term liability financing you would choose to buy the business?
2. Provide a suggestion for future business owners on financing.
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