Assignment 9: Business Finance
1. Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. You might choose to open a hair salon, a babysitting service, a record store, or many other things. This can be the same type of company you chose in assignment 8, or it can be different.
a. Describe the type of company you chose. (1-2 sentences. 0.5 points)
b. If you needed to get funding for your company, would you prefer to get debt funding or equity funding? Explain why you would prefer this type. (2-4 sentences. 2.0 points)
c. If you needed to get funding for your company, describe at least two sources of funding that you would prefer. Explain why you would prefer these sources of funding. (2-4 sentences. 2.0 points)
d. List at least four operating costs your business might have. (1.0 points)
e. Consider the industry of your company and the current economy, and then explain how these factors might impact your company’s sales. If you do not think these factors would impact your sales, explain why they wouldn't. (2-4 sentences. 2.0 points)
f. If you had $5,000 to start this company, which department would get the most funding? Which department would get the least funding? Which phase of the business would be the most expensive? (2-4 sentences. 2.0 points)
2. Review the Financial Statements: Income Statement from Section 9, Lesson 2 of this course. Use the information from the example income statement for Jamie's Bead Jewelry to answer the questions below.
a. What are the two sources of revenue for the company? (0.5 points)
b. What is the company's total revenue? (0.5 points)
c. What is the company's net profit? (0.5 points)
d. Is the company experiencing a profit, or a loss? (0.5 points)
3. Review the Financial Statements: Balance Sheet from Section 9, Lesson 2 of this course. Use the information...
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