Running head: FUNDING STRATEGIES1Funding StrategiesInstitution AffiliationDateFUNDING STRATEGIES2IntroductionI have the intention of starting a retail business that involves the sale of electronic products.However, I lack sufficient capital to begin this undertaking. Therefore, I would require seekingfor finance elsewhere since this kind of business requires a considerable amount of finance dueto the high cost involved in purchasing electronics. The size of my business will be large henceneeding a large sum of money which is contrary to the normal sized retail enterprises. Thefunding should as well be timely to facilitate the process of starting the operation of theenterprise. Therefore, I would consider the main sources of finance to evaluate the most suitableone for the business.Equity FinancingThis kind of funding comprises of the interchange of a part of the ownership of theenterprise with the intention of facilitating monetary investment in the enterprise (Javaid, 2014).The ownership stake that was attained due to an equity speculation permits the investor to have ashare of the firms revenues. Equity comprises an everlasting investment in a firm and is notrefundable by the firm in future. This investment must be appropriately be explained in anofficially developed commercial entity. This stake could either be membership units in thesituation where the firm is a limited obligation or common stocks if the firm is a corporation.Those with co ...
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