What financial risks is vicky assuming

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Reference no: EM132045491

Vicky buys 30 Vespa scooters to provide scooter rentals in Vail, Colorodo. She will need 4 employees.

She will invest $50,000 of her own funds and is borrowing $230,000. $180,000 of the loan will be secured with the 30 scooters. The other $50,000 is a personal note from her bank. She hopes to start her business in 90 days.

1. What financial risks is Vicky assuming?

2. What risks will Vicky face because she is hiring four people?

Reference no: EM132045491

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