Question 1. What are the differences between short- and long-term financing? What are some of the popular types of short-term financing available to small businesses? Suppose you own a small business. What is a situation where short-term financing would be beneficial for your company? Explain why
Question 2. Expanding growth within an organization requires some type of capital woven into their long term strategy. This is achieved, usually through debt, equity, or a mix of both.
Part 1) Name at least 1 financial instrument used in raising capital via debt, and at least one way through equity as well.
Part 2) What is more expensive to a company -- raising capital through debt or equity? State your reasons why! Note -- do NOT use the argument "it depends". Pick one side or the other, then explain and justify.
Question 3. What factors would influence the decision to sell a component of the business to raise capital to facilitate growth of another component of the business? If you owned a small business, what factors would influence a decision to sell the entire business?