Discuss the below:
Assume you are the successful owner of technology store and repair service and you want to open a second store in a town 25 miles away. You and your accountant have an estimated cost of $600,000 to set up the store and keep it going until you begin to earn a profit. Your bank has agreed to set up a loan for that amount and you also have an investor willing to provide $600,000 in exchange for part ownership of the business. Answer the following questions:
Q1. What additional information would you want before making the decision?
Q2. What is an advantage and disadvantage of the debt option? Of the investor option?